News & Events

The SEC Division of Examinations announced its 2021 examination priorities today, focusing on climate-related risks, conflicts of interest for brokers (Regulation Best Interest) and investment advisers (fiduciary duty), and attendant risks relating to FinTech in its initiatives and examinations. Stay tuned for our annual commentary, coming soon.

UPDATE: Financial Advisor IQ reports on Feb 25 SIFMA Webinar on SEC Reg BI and Exams, featuring a quote from Bates Compliance Managing Director and panelist Linda Shirkey.

Bates Compliance is a proud Supporting Sponsor of the 2021 IAA Virtual Compliance Conference. Alex Russell (Managing Director, White Collar, Regulatory and Internal Investigations) and Linda Shirkey (Managing Director, Bates Compliance) will be speaking on the GameStop panel at 11 a.m. on Friday, March 5th.

Bates continues to track regulatory developments that have long-term impact. Here, we highlight in brief several ongoing matters that affect regulatory compliance, including:

• FINRA Small Broker Annual Report Filing Extension
• DOL Class Exemption
• Lessons from COVID-19 Pandemic
• FINRA Rule on Registered Member Being Named a Customer Beneficiary
• New York Investment Adviser Registration
• NASAA Model Rule on Continuing Education for IARs

Join SIFMA and the SIFMA C&L Society on February 25, 2021 from 1:00-2:20pm ET for a two-part webinar on current developments on family offices and the SEC’s latest exam priorities. Bates Compliance Managing Director Linda Shirkey will be speaking. Sponsored by Bates Group.

Bates Group and Innova Learning, Inc. today announced a joint effort to provide advanced training programs, subject matter expertise, and consulting services to financial services industry companies and the legal counsel who serve them.

Federal enforcement agencies and financial regulators have been warning of increased cyber risks to public and private databases, financial institution infrastructure and retail investors. As financial institutions embrace new fintech solutions while shifting more permanently to remote online work, the pressure to ramp up cybersecurity efforts continues to grow. New York’s influential Department of Financial Services recently estimated that the market for cyber insurance will be over $20 billion in 2025. In this article, we take a closer look at the NYDFS’ Cyber Insurance Risk Framework and note recent communications on cybersecurity federal and state regulators.

Bates Group is a proud returning sponsor and virtual exhibitor at the 2021 SIFMA AML and Financial Crimes Conference. Connect with the Bates team at our Virtual Booth to build and improve your AML and FC program in 2021.

In a new publication combining its annual report on observations and exam findings with its report on risk monitoring and program priorities, FINRA is offering a “single authoritative source” for members to turn to for the purposes of adapting their compliance programs and preparing for “emerging issues for the coming year.” In this article we take a look at the highlights from the report and provide our updated annual Bates chart which keeps track of FINRA’s articulated priorities from year-to-year.

In May 2019, Bates Compliance published a review of the supervision, inspection and operational considerations for broker-dealer branch office compliance. Since then, FINRA has broadened its examination priorities, while the COVID-19 pandemic has heightened compliance risks. This updated white paper discusses the responsibilities placed on the supervisors of broker-dealer branches in light of FINRA's broadened priorities and recently updated guidance on remote supervision.

FINRA has announced the publication of the 2021 Report on FINRA's Examination and Risk Monitoring Program. The new Report combines and replaces two previously published annual reports, the Report on Examination Findings and Observations and the Risk Monitoring and Examination Program Priorities Letter.

Bates Group is proud to welcome our newest experts and consultants (clockwise from top L):

• Andrew Auslander, CFA, FRM - Financial Risk Management, Bonds, Corporate Lending
• David F. MacNair - AML, Fraud Prevention, FINRA Arbitrator
• Annemarie McAvoy - Financial Crime Compliance, AML and Terrorist Financing, Internal Investigations
• Samuel Turvey - Compliance, Regulatory Response, Arbitration

Bates Group is a proud Bronze sponsor of the New York State Bar Association Women In Law Section (WILS) 17th Annual Edith I. Spivack Symposium “Ready to Lead: Advancing Women Leaders During the Pandemic and Beyond“ and the Kay Crawford Murray Memorial Award program honoring an outstanding attorney who recognizes the value of diversity and mentoring in the legal profession. Day 2 will be held on Tuesday, January 26, 2021 from 12:15 p.m. – 5:30 p.m. Registration is open.

The SEC Division of Examinations issued a recent Risk Alert, along with remarks by Director Peter Driscoll, identifying common deficiencies from recent examinations related to the obligations on investment advisers required by the Advisers Act. Join this new webinar from Bates Compliance to learn how to strategically and tactically manage and streamline this important compliance information, which the SEC will be scrutinizing in 2021.

The new Anti-Money Laundering Act (AMLA) became law on January 1, 2021, extending the “risk-based” AML approach to regulation and enforcement. AMLA is the most significant update to the Bank Secrecy Act rules since the USA PATRIOT Act in 2001. It incorporates substantial changes to the laws governing the combatting of money laundering and terrorist financing. Read the full article to learn about key final provisions that will lead to many changes in industry rules and practices going forward, and how Bates AML and Financial Crimes can support your.

Just prior to the new year, the SEC finalized significant changes to rules and forms governing advertising and cash solicitations under the Investment Advisers Act, replacing both the prior Advertising Rule and Cash Solicitation Rule with a single, broad, “modernized” marketing rule. The new rule also amends investment adviser registration Form ADV and the books and records rule to reflect the related changes. In this article, we detail key provisions of the new rule and how Bates will help your firm navigate and implement this significant rule change.