Use of leverage underlying Archegos margin call raises concerns (MarketWatch)

Certain types of swaps and other derivatives were the primary securities involved that led to the recent Archegos Capital margin calls. The subsequent fallout resulted in major financial losses at some banks, including Credit Suisse’s and Nomura’s prime brokerage businesses. The types of leveraged trades utilized, including CFDs, may be something that the SEC and…

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Alert issued by FrontLine on potential SEC rule changes highlighted (ThinkAdvisor)

When the SEC recently issued its list of rules that it will revisit pursuant to Section 610 of the Regulatory Flexibility Act (“RFA”), FrontLine quickly notified the industry via our ComplianceAlert. The majority of the rules listed affect registered investment advisers and four rules on the SEC’s agenda are Investment Advisers Act rules. Amy Lynch,…

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Amy Lynch’s “Squawk on the Street” interview on recent market events, Gensler impact (CNBC)

FrontLine’s Founder and President Amy Lynch joined CNBC’s “Squawk on the Street” for a live interview discussing the compliance implications of Archegos Capital’s margin call and resulting fallout. Ms. Lynch states that while compliance would have been involved at some level, it’s too early to know whether compliance failed or instead was overruled by business…

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SEC Rules to be Revisited in 2021

The SEC has published its list of rules that it will revisit pursuant to Section 610 of the Regulatory Flexibility Act (“RFA”). The majority of the rules listed affect registered investment advisers and are on the agenda for review this year. Under the RFA, specific consideration must be given to the following factors when assessing…

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FrontLine’s guidance on SEC exam priorities featured (ThinkAdvisor)

The SEC’s Division of Examinations upcoming exam focus areas could diverge from its recently issued 2021 exam priorities letter. The 2021 letter carries over many items that were exam priorities in the prior year, as well as more concurrent compliance issues emerging from the pandemic related work from home environment. However, the new exam priorities…

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