With the SEC’s share class sweep now in its later stages, a number of firms are under pressure by the regulator to settle cases. Amy Lynch, FrontLine’s Founder and President, explains that these firms are primarily small and mid-sized shops that feel boxed in to negotiate with the SEC because they lack the deep pockets…
FINRA’s recent AML focus and settlements with firms for AML related deficiencies has, in at least one case, led to extra client screening via Google searches. UBS took the unusual step of requiring sales assistants of U.S. brokers to conduct Google searches for red flags as part of setting up new customer accounts. While the…
The current government shutdown is having a wide-ranging impact on the ability for firms to interact with the SEC for registrations and fund launches, among other needs. According to Founder and President Amy Lynch, new firms that are trying to register with the SEC will face delays in that process. While many items that are…
The current Federal government shutdown has essentially halted the SEC’s ability to complete ongoing exams or start new ones. Founder and President Amy Lynch explains that OCIE’s process during a shutdown is to suspend non-emergency or routine exams because they are not considered mission critical. Ms. Lynch further states that without funding for examiners’ travel,…
With a four month amnesty period for firms to self-report violations related to share class selection expired, the SEC’s follow-up sweep of firms that did not volunteer information to the regulator is swiftly moving ahead. Amy Lynch, FrontLine’s Founder and President, explains that the sweep letters being received by firms are a typical response by…