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Broker-Dealer Risk Management

K&L Gates LLP

United States: SEC’s Approach to Artificial Intelligence Begins to Take Shape

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On 27 March 2025, the US Securities and Exchange Commission (SEC) hosted a roundtable on Artificial Intelligence (AI) in the financial industry that was designed to solicit feedback on the risks, benefits and governance of...more

A&O Shearman

Addressing Issue Of First Impression, Southern District Of New York Dismisses Action Seeking To Impose Short-Swing Liability...

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On March 14, 2025, Judge John P. Cronan of the United States District Court for the Southern District of New York granted summary judgment in favor of defendants in an action brought under Section 16(b) of the Securities...more

A&O Shearman

IOSCO publishes consultation report on neo-brokers

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The International Organization of Securities Commissions (IOSCO) has published a consultation report on neo-brokers, a subset of brokers which provide online-only investment services and do not operate physical branches....more

SEC Compliance Consultants, Inc. (SEC³)

Predictions for 2025: What Private Fund Advisers Can Expect from SEC Examinations

There has been a lot of conjecture that the SEC may become friendlier to registrants because of the new administration. Given the SEC’s mandate to protect the investing public, however, we do not expect SEC examiners to...more

Polsinelli

California Enacts New Franchise Broker Law

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On Sept. 24, 2024, California Gov. Gavin Newsom signed Senate Bill 919, the California Franchise Broker Law, into law. Officially titled the “Franchise Investment Law: Franchise Brokers,” the California Franchise Broker Law...more

MoFo Tech

AI Trends for 2025 - Regulatory Obligations Persist in the Face of Broker-Dealers’ Use of Gen AI

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As generative artificial intelligence (Gen AI) tools rapidly evolve in 2025, FINRA member broker-dealers will be presented with both promising opportunities for investors and challenges in satisfying regulatory obligations....more

Faegre Drinker Biddle & Reath LLP

What’s New with FINRA’s Recent 2025 Regulatory Oversight Report

2025 is here, and so is FINRA’s 2025 Annual Regulatory Oversight Report (Report). On January 28, 2025, FINRA published the Report, which provides firms with insight into FINRA’s findings from recent observations and...more

Latham & Watkins LLP

SEC Withdraws Appeal of Court Decision to Vacate Its Dealer Rules

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The SEC’s move is part of a recent shift toward a less enforcement-centric approach that is set to reshape the regulatory framework for digital assets in the US....more

A&O Shearman

UK Financial Conduct Authority portfolio letter on supervisory strategy for wholesale brokers

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The U.K. Financial Conduct Authority has published a Dear CEO Letter on its new strategy for supervising wholesale brokers. The FCA has observed a change in the sector in recent years with larger firms acquiring smaller ones...more

WilmerHale

Keeping Up with the Regulators: How to Build an Effective Compliance Programme to Satisfy the Best Interest Care Obligation

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It has been nearly five years since the US Securities and Exchange Commission (‘SEC’ or ‘the Commission’) adopted Regulation Best Interest (Reg BI) to enhance the standard of conduct applicable to broker-dealers when they...more

Seward & Kissel LLP

Important Reminder About State-Chartered Credit Union Restrictions

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During the past 12-18 months, we have noted a significant increase in the number of brokers underwriting share certificates issued by credit unions. It is vital for brokers in the credit union share certificate market to...more

Ropes & Gray LLP

DOJ Issues Final Rule Restricting Flow of Bulk Sensitive Personal Data to China and Other Countries of Concern

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On January 8, 2025, the Department of Justice (“DOJ”) published its Final Rule to implement President Biden’s Executive Order 14117, “Preventing Access to Americans’ Bulk Sensitive Personal Data and United States...more

Skadden, Arps, Slate, Meagher & Flom LLP

Recent Developments Could Facilitate Greater Bank and Broker-Dealer Involvement in Cryptoasset Services

On September 9, 2024, the Chief Accountant of the U.S. Securities and Exchange Commission (SEC), Paul Munter, delivered remarks describing circumstances in which, in the SEC staff’s view, entities may engage in cryptoasset...more

White & Case LLP

FinCEN and SEC Move Closer to New AML Requirements for Investment Advisers & ERAs

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On May 13, 2024, FinCEN and the SEC jointly proposed a new rule that would require SEC-registered investment advisers and exempt reporting advisers to maintain written customer identification programs (CIPs). The new rule...more

Seward & Kissel LLP

SEC Releases Materials on T+1 Settlement Cycle Adoption in Advance of May Compliance Date

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Who may be interested: Registered-Investment Companies; Investment Advisers; Broker-Dealers - Quick Take: In May 2023, the SEC adopted several Rules and Rule amendments which, among other things, shorten the standard...more

Troutman Pepper Locke

OCC Advises Banks on How to Prepare for Shortening the Standard Securities Settlement Cycle

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On January 17, the Office of the Comptroller of the Currency (OCC) issued a bulletin advising banks on how to prepare for the upcoming shortening in the standard securities settlement cycle for most U.S. securities...more

Morgan Lewis - All Things FinReg

SEC Adopts New Treasury Clearing Rules

On December 13, 2023, the US Securities and Exchange Commission (SEC) adopted rule amendments (Treasury Clearing Rules) designed to improve risk management in clearance and settlement and to facilitate additional central...more

Davis Wright Tremaine LLP

Broker Dealer Regulatory Digest - December 2024

The following newsletter provides a roundup summarizing enforcement actions, guidance, rulemakings, and other public statements taken by a federal and/or state financial services regulatory agency, specifically focusing on:...more

Cornerstone Research

Alleged Market Manipulation and the Pre-hedging of Large Trades

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Pre-hedging, or anticipatory hedging, is one of many risk management tools often used in principal-based OTC markets, such as commodities, foreign exchange (FX), or interest rate swap markets. It refers to trading conducted...more

Davis Wright Tremaine LLP

Broker Dealer Regulatory Digest - November 2023

Editor's Note - The following newsletter provides a roundup summarizing enforcement actions, guidance, rulemakings, and other public statements taken by a federal and/or state financial services regulatory agency,...more

Harris Beach Murtha PLLC

SEC Examination Priorities for 2024

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The United States Securities and Exchange Commission’s Division of Examinations announced its examination priorities for fiscal year 2024 on October 16, 2023. The timing of the announcement is significant because it is the...more

Faegre Drinker Biddle & Reath LLP

Investors Versus Machines: The SEC Cracks Down on AI, Robo-Advisors and Potential Conflicts of Interest

We are probably still years away from Wall Street being overrun by actual robots. Nonetheless, artificial intelligence (AI) tools are divisively integrating into all aspects of society—from the classroom to the courtroom....more

BakerHostetler

The SEC's Proposed Cybersecurity Rules: Regulatory Delay Does Not Bless Standing By

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The SEC’s Cybersecurity Proposals - The SEC has proposed four rules designed to address cybersecurity risk and management, including incident reporting by public companies....more

Davis Wright Tremaine LLP

SEC Delays Proposed Cybersecurity Rules

According to its Spring 2023 rulemaking agenda, the U.S. Securities and Exchange Commission (SEC) has delayed issuance of two sets of cybersecurity requirements that previously were expected to be finalized in April 2023. The...more

Faegre Drinker Biddle & Reath LLP

You Made the List: SEC’s Spring Agenda Would Impact Broker-Dealers

The SEC’s Office of Information and Regulatory Affairs recently released the Spring 2023 Unified Agenda of Regulatory and Deregulatory Actions (the Agenda). The word salad of a title hints at the fact the SEC is considering a...more

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