Bates Group welcomes our newest consulting and testifying experts:

Nicholas Bowman, CFP®, CEP®, MSPFP

James A. Kamradt

Bridget McNamara-Fenesy, JD

David M. Minnick

Download this illustrative and detailed chartbook featuring U.S. economic and capital markets analysis for 2022. From Bates Group Director Greg Kyle and President Ben Pappas.

On March 27, 2023, the SEC Division of Examinations issued a Risk Alert focused on compliance deficiencies found in examinations of newly registered advisers. The Division said these advisers may face unique risks, particularly as to conflicts of interest, and cautioned them to review their policies and procedures, disclosures, and marketing practices. The Division also explained—perhaps as guidance for these new registrants—that their examinations were “an opportunity for early engagement between advisers and the staff.” Bates has a brief summary of this new Alert and what it could mean for your firm and clients.

The Consumer Financial Protection Bureau (CFPB) engages in rigorous examinations of financial institutions to ensure that they follow all applicable laws and regulations, have effective compliance management systems in place, and provide meaningful consumer protections. Bates Group offers independent consumer compliance reviews to help protect your business and customers.

In response to the threat from cyber actors “who use constantly evolving and sophisticated tactics, techniques, and procedures to cause harmful cybersecurity incidents,” the SEC proposed a new set of comprehensive rules intended to mitigate that risk. The proposal is consistent with the White House’s recent announcement of a new comprehensive National Cybersecurity Strategy and the annual FBI report on cybercrime trends based on 2022 data. Bates has the details.

Join Bates at the NMLS 2023 Annual Conference, April 3-6, 2023 in Phoenix. Hear Bates Director Matt Summers speak on the CSBS Money Transmitter model law. Registration now open.

Fast-moving events in the financial markets are underscoring the need for a workable digital asset legislative and regulatory framework. Ongoing volatility continues to reduce overall crypto market value, and federal and state regulators have ramped up their enforcement efforts. Such volatility is the backdrop to this latest roundup on crypto developments.

In the aftermath of the collapse of three banking firms, Silvergate, Silicon Valley Bank and Signature Bank earlier in March, tensions in the banking sector continued over the past week with the shares of a number of regional banks including First Republic, PacWest Bancorp and Zions Bancorp under pressure. During the turmoil-filled week, several questions were raised about the strength of U.S. banks, whether regulators moved quickly enough, the role of VCs, and if the failures were foreseeable. Read the analysis from Bates Expert and Director Greg Kyle.

On Sunday, U.S. regulators seized Signature Bank, and on Friday, U.S. regulators seized the assets of Silicon Valley Bank (“SVB”). The seizure of SVB led to one of the largest bank failures in U.S. history and the largest failure of a financial institution since the 2008 financial crisis. The failure of SVB comes on the heels of Silvergate Capital announcing on Wednesday that it would voluntarily wind down operations and liquidate its bank. With three bank collapses in one week, the markets, investors, and many of our clients are understandably on edge.

Consumer protection laws are designed to protect consumers, to keep sellers honest and to protect purchases of goods from fraudulent or deceptive marketing. Consumer protection laws are enforced by the Federal Trade Commission, and businesses that fail to maintain compliance with federal consumer protection laws could face severe consequences.

Bates is a proud returning sponsor of the SIFMA C&L 2023 Annual Seminar, March 12-15 at the Marriott Marquis San Diego Marina. Visit Bates at booth #516.

Publications including ThinkAdvisor, Law360, SIFMA SmartBrief, and Politico have all recently mentioned Ira D. Hammerman's new role as Bates Group Managing Director.

In the coming months, the New Jersey legislature is expected to pass the Digital Asset and Blockchain Technology Act, a bill that would establish one of the broadest licensing and regulatory frameworks on digital assets in the country. The legislation is being closely watched as it offers companies a more comprehensive alternative to the current standard for the regulation of digital assets prescribed under New York law. Bates has a short summary and comparison chart.

Bates Group Managing Consultant Lindsey Dean and Alison Jimenez, Independent Expert, to speak at the NASAA 2023 Enforcement Training, March 7-9, 2023. Online seats still open.

We are proud to announce that Ira D. Hammerman has joined Bates Group as Managing Director. 

FINRA proposed amendments to the Codes of Arbitration Procedures for Customer Disputes and Industry Disputes that would affect the arbitrator list selection process. The proposed amendments would also make clarifying changes on administrative practices.