In the seventh installment in the Finding Balance series, we take a closer look at increasing regulatory scrutiny of financial institutions (FIs), in light of the COVID-19 pandemic.
Continuing the practice of issuing Risk Alerts summarizing examination findings, which has only increased under the leadership of the now departing Division of Examinations (EXAMS) Director Pete Driscoll, on 21 July 2021, EXAMS issued such an Alert on fixed income principal and cross trades by investment advisers, a topic that the SEC Staff has been scrutinizing for some time.
The SEC today issued its first Order under its Whistleblower Rules in quite some time, citing a registered broker-dealer with violating Rule 21F-17 of the Securities Exchange Act, which precludes conduct that could impede anyone from communicating with the Commission about potential securities laws violations.
In its first enforcement action for a breach of the Short Selling Regulation (SSR), the UK Financial Conduct Authority (FCA) has imposed a fine of £873,118 on Asia Research and Capital Management Ltd (ARCM). The fine relates to ARCM’s failure to notify the FCA and to disclose to the public its net short position in Premier Oil plc, as required under the SSR. In our latest briefing, we explore the nature of ARCM’s breaches leading to the enforcement action, and discuss key learning points for firms going forward.
On 3 July 2020, the FCA published a Decision Notice against Conor Foley, former WorldSpreads CEO, proposing to fine him £658,900 for market abuse and ban him from performing any roles linked to regulated activity. This decision highlights the FCA’s continued focus on market abuse cases involving market manipulation, and serves as a reminder that the FCA is determined to continue pursuing complex and difficult cases involving false and misleading statements.
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