News & Events – Compliance and Regulatory Alerts

NASAA has published a Comment Letter to the DOL Regarding Retirement Security Rule: Definition of an Investment Advice Fiduciary.

FINRA is continuing its focus on eligible customers receiving Rights of Reinstatement (“ROR”) benefits where appropriate. Read our full alert for a look at FINRA's scrutiny into ROR and how our team’s deep experience in this area can help your firm.

State regulators are encouraging individuals and businesses to start preparing now for the Nov. 1 start of Nationwide Multistate Licensing System (NMLS) annual license renewal.

The Securities and Exchange Commission’s Division of Examinations has just released its 2024 examination priorities report. Stay tuned for our annual commentary and chart, coming soon, on the SEC's 2024 priorities and how they may impact your legal, regulatory and compliance matters.

With the SEC's adoption of the Private Fund Rules, the amendment now requires registered investment advisers to document their annual review in writing.

State Legislatures in Louisiana and North Dakota have recently enacted or adopted new rules for virtual currency and money transmitters. Bates has the details in this new alert.

SEC Exams Division staff issued a new risk alert on June 8, 2023, noting they will be reviewing additional Marketing Rule areas of emphasis.

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.

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. 

The Securities and Exchange Commission’s Division of Examinations has just released its 2023 examination priorities report, providing insights into its risk-based approach, including the areas it believes present potential risks to investors and the integrity of the U.S. capital markets. Stay tuned for our annual commentary and chart, coming soon, on the SEC's 2023 priorities and how they may impact your legal, regulatory and compliance matters.

Businesses that are interested in engaging in virtual currency activities in Louisiana must now take steps to file for a license from the state. Read our new alert for details and a link to the new license application checklist.

FINRA has announced the publication of the 2023 Report on FINRA's Examination and Risk Monitoring Program. The comprehensive report from FINRA’s regulatory operations covers 24 topics relevant to the evolving securities industry. Additionally, the report introduces a new Financial Crimes section highlighting FINRA’s increased focus on protecting investors and safeguarding market integrity against these ongoing threats. Stay tuned for our annual commentary, coming soon, on FINRA’s 2023 objectives and how they may impact your legal, regulatory and compliance matters.

FINRA has remained focused on ensuring that eligible customers received Rights of Reinstatement (“ROR”) benefits where appropriate. Just recently, we were retained by another large firm looking to leverage the depth of our experience gained through many engagements assisting our clients with Rights of Reinstatement issues since the targeted examination announcement in 2020. Contact Bates today if you are facing a FINRA inquiry or other action or need to update your policies and procedures.

FINRA is conducting a targeted review of brokerage firms' systems and procedures for providing customers waivers and rebates available through Rights of Reinstatement (RoR) on mutual fund purchases. As part of this review, FINRA will request each firm that receives this information request respond to certain questions with respect to the period of January 1, 2017 through June 30, 2020.

The SEC Enforcement Division is continuing to concentrate on firms that did not self-report by the deadline of the SEC’s Share Class Selection Disclosure Initiative, and is now focusing on revenue-sharing payments and other forms of representative compensation or cost offsets. Bates takes a look at recent SEC actions and settlements with comments and recommendations by Securities Litigation and Regulatory Enforcement Managing Director Alex Russell.

The SEC's Enforcement Division has now initiated investigations against firms that did not self-report by the deadline of the SEC’s Share Class Selection Disclosure Initiative. Whether you are facing an enforcement or remediation effort, Bates can help.