News & Events

A flurry of year-end announcements reveals a determination by state advocates toward more aggressive state protection of investors and consumers. NASAA published results from a recent survey of state regulators concerning the top investor complaints and investigations in 2017. Governor Andrew Cuomo announced a proposed new rule to amend New York’s current suitability regulation “to provide a best interest standard of care for all sales of life insurance and annuity products.” Democratic senators introduced a bill to give state Attorneys General expanded authority to ensure national bank compliance with state law. Here’s a brief look.

Ronald H. Filler is a Bates Group affiliate expert witness in the area of financial services law.  He has 35+ years of experience in the futures/derivatives/securities industries and is a frequently requested speaker on trading and market regulation, both nationally and internationally.  We are pleased to share Professor Filler’s upcoming 2018 publication and presentation and recent 2017 published articles and speaking engagements.

Bates Group is proud to introduce our newest experts: Perry Chesney, Tim Durno, Jeff Holik and Kevin Neal.

Legislators and regulators continue their uneven path toward a more comprehensive and inclusive framework to combat international money laundering. In the past few weeks, FINRA provided new anti-money laundering (AML) guidance to member firms as it issued a first-of-its-kind public summary of an examination of broker-dealer compliance programs. The U.S. Treasury Undersecretary for Terrorism and Financial Intelligence (TFI) announced the launch of a new FinCEN Exchange to support the TFI's approach to Bank Secrecy Act (BSA) requirements. In addition, regulatory and legislative initiatives moved forward to broaden the scope of authority for law enforcement agencies.

Only a few weeks ago, SEC Chair Jay Clayton made clear that trading in virtual currencies can present a significant risk to investors and poses unique regulatory challenges. He warned that investors are vulnerable to price manipulation and fraud because they may lack information about online platforms that list and trade virtual coins or tokens offered and sold in initial coin offerings (“ICOs”). He pledged to provide more clarity and transparency about the risks, and he promised the SEC would publish guidance for investors on standards, process, value and existing protections

Another high-profile cyber breach was disclosed last week. Uber, the app-based transportation service, announced that, in 2016, hackers stole information including names, email addresses, phone numbers and driver’s license data, related to 57 million drivers and riders. This incident is significant, not only to underscore the vulnerabilities of data on the cloud and corporate servers, but also because it highlights the serious consequences of mismanaging what is becoming an all-too-frequent occurrence.

FINRA Issued Regulatory Notice 17-40 on November 21, 2017 to provide guidance to firms regarding Anti-Money Laundering program requirements under FINRA Rule 3310, following the adoption of FinCEN's Final Rule to Enhance Customer Due Diligence (CDD) Requirements for Financial Institutions.

With the latest cyber crises momentarily at bay, SEC Chair Jay Clayton is taking the opportunity to address both short- and long-term agency priorities. In a speech before the Practising Law Institute’s 49th Annual Conference on Securities Regulation, Mr. Clayton continued to set forth the agency’s near-term, narrowly focused retail and institutional regulatory priorities and articulated longer-term elements of a five-year strategic plan.

Why do people commit fraud? This short video explores how pressure, opportunity and rationalization — called the Fraud Triangle — can come together to influence an individual to commit fraud.

Bates Group is a proud supporter of International Fraud Awareness Week, November 12-18, 2017.

Bates Consulting and Testifying Expert Dr. Shane Shook will be a featured speaker at an upcoming webinar titled Cybersecurity Threats to Banks and Financial Institutions: What to Know and What to Do, on November 30, 2017 from 12-1 p.m. EST. This complimentary CLE webinar is presented by Cadwalader, Wickersham & Taft LLP.

Covered financial institutions must assess and enhance their AML programs to be in compliance with the specific requirements of the new Rule by May 11, 2018. Is your firm ready?

Bates AML/BSA Consulting and Testifying Expert Susan Berger provides some background and details about the two new requirements which must be satisfied by the May 11 deadline.

Bates Group joins hundreds of organizations who have partnered with ACFE, one of the largest anti-fraud organizations, for their yearly Fraud Week campaign. 

According to Geoff Winkler, Bates Group’s Director of Fraud and Forensic Investigations, “No one is immune from fraud, as it affects every industry in both our business and personal lives.”

During Fraud Week, Bates Group will be sharing infographics, articles, videos and other information on batesgroup.com and on social media to promote fraud awareness, education, and prevention. 

Political momentum continues to drive lawmakers’ efforts to combat elder financial abuse. In our last report on the subject, Bates considered the current state of play as indicated by the North American Securities Administrators Association’s (NASAA) survey results on (i) firm practices and policies applicable to senior customers and (ii) state securities regulator perspectives on senior financial fraud. Since then, federal and state legislatures have enacted bipartisan laws to expand agency authority over elder abuse and to better cope with guardianship issues. 

Bates Group is pleased to announce that Michael Bernardo, Bates Group Managing Director, Compliance Solutions, will be a featured speaker at the 2017 Securities Symposium, sponsored by Greensfelder, Hemker & Gale, P.C. and The Bar Association of Metropolitan St. Louis, on Wednesday, November 8, 2017.

Co-Directors of the SEC Division of Enforcement, Stephanie Avakian and Steven Peikin, addressed enforcement priorities at a Securities Forum held in Washington, D.C. last week. Ms. Avakian’s formal remarks emphasized that the SEC will refocus its enforcement efforts toward the protection of retail investors and on a new integrated approach to cyber-related crime. Mr. Peikin, in widely-reported comments, described a shift in enforcement tactics, while also acknowledging resource constraints. Details after the jump.

David Zweighaft (CPA/CFF, CFE) is a New York-based Fraud Subject Matter Expert with over twenty-five years’ experience serving the legal and financial services communities as both a consultant and expert witness. He is the author of the recent article “Business email compromise and executive impersonation: are financial institutions exposed?”, which appears in Volume 18 Issue 1 of the Journal of Investment Compliance (published by Emerald Publishing Limited in the UK).