News

Bates News, Compliance and Regulatory Alerts, Industry News  |  01-18-19

Bates Group Welcomes New Expert and Consultant Sheila Murphy

Bates is proud to welcome Sheila Murphy as a new Expert and Consultant. Ms. Murphy brings over 30 years of legal, insurance, regulatory and retail litigation experience. Prior to joining Bates, Ms. Murphy served MetLife in various legal roles.

Bates News, Bates Research  |  01-17-19

New FINRA Report Details Effective Practices for Broker-Dealer Cybersecurity Compliance

Right before the new year, FINRA published a report on specific cybersecurity compliance concerns raised in recent broker-dealer examinations. The report provides important guidance for broker-dealers to ensure that their compliance programs adequately address particular risks. Specifically, FINRA highlights best practices among firms on (i) branch office controls; (ii) limiting phishing attacks; (iii) mitigating insider threats; (iv) testing compliance networks for security weakness; and (v) controlling risks related to mobile devices. In this article, Bates reviews these elements and what they may mean for your compliance program.

Bates News, Industry News  |  01-14-19

Bates Group at the 2019 NYSBA Annual Meeting

Bates is proud to be a Bronze Sponsor of the NY State Bar Association’s Women In Leadership Section Symposium at the 2019 Annual Meeting, Tuesday, January 15 in New York City. Bates Group NY/NJ Managing Director Susan Harper, Esq. will give the welcoming remarks and co-chair a panel. On Wednesday, January 16th, Susan will also participate on the NYSBA Presidential Summit.

Bates News, Bates Research  |  01-03-19

OCIE to Prioritize Protection of Retail Investors in 2019 Examinations

The SEC Office of Compliance Inspections and Examinations ("OCIE") will prioritize risks to retail investors in this year’s examinations. That concern is a distinguishing highlight of a new report summarizing OCIE assessments of regulatory issues, market risks and policy developments.

Additional featured priorities include continuing risks and concerns related to fee disclosures, share class, and wrap fee programs, anti-money laundering, cybersecurity, digital assets, FINRA and MSRB operations, and issues of compliance by registrants involved in critical market infrastructure. In this article, we review the new report, contrast this year’s priorities with those of the past few years in our annual Bates year-to-year SEC OCIE priorities chart, and consider some implications so that firms might better prepare and, if necessary, adjust their compliance systems accordingly.

Bates News  |  01-02-19

Bates Group Promotes Benjamin Pappas to President

Bates Group Chief Operating Officer Benjamin R. Pappas has been promoted to President of Bates Group LLC, the leading expert witness and consulting firm for the financial services industry. Bates Group CEO Jennifer L. Stout made the announcement on January 2nd, 2019.

Bates Research, Industry News  |  12-21-18

SEC Office of Compliance Inspections and Examinations Announces 2019 Examination Priorities

SEC Office of Compliance Inspections and Examinations (OCIE) has announced their exam priorities for the upcoming year. You can read the press release here.

Bates News, Bates Research  |  12-13-18

FINRA Issues 2018 Report on Examination Findings

In its second annual effort to highlight areas of compliance concern, FINRA published a 2018 Report on Examination Findings. The thorough report details selected observations and findings from broker-dealer firm exams that have “potential significance, frequency and impact on investors and the markets.” The primary areas of focus in this year’s report are suitability for retail customers, private placements, abuse of the authority a client gives to a registered representative, and fixed income mark-up disclosure. This article takes a closer look at these FINRA priorities and additional FINRA findings on compliance issues raised by this year’s examinations.

Bates News, Bates Research  |  12-06-18

Compliance in the Age of Robo Investment Advice

Investments in robo-offerings have grown, and the application and use of algorithmic programming expanded. A new report cites data that predicts “digital advice users will increase from roughly 2 million to 17 million by 2021.” In this article, Bates Research takes a closer look at existing SEC compliance guidance on robo-advisory services and some of the enforcement concerns in this rapidly expanding marketplace.

Bates News, Industry News  |  12-04-18

New Book On Becoming a Financial Industry Expert From Bates Group’s Michael Weiner Now Available

Renowned Bates Expert Michael D. Weiner discusses his newly published book, In My Expert Opinion: Becoming an Effective Expert in the Financial Services Industry. Working as an expert witness, he saw "the good, the bad and the ugly" in his counterparts, and from that experience grew a desire to aid both aspiring experts and their counsel. In My Expert Opinion was written to train experts in the positive aspects of expert witness work, to point out the pitfalls, and to provide a roadmap to a successful career.

Compliance and Regulatory Alerts  |  11-30-18

BCS Alert: FINRA’s Susan Schroeder Previews 2019 Enforcement Priorities

At the November 2018 SIFMA C&L New York Regional Seminar, Susan Schroeder, FINRA’s Executive Vice President and Head of Enforcement, discussed some of FINRA’s enforcement priorities heading into 2019. You can expect these to be included when the official list comes out in January. Read the full alert to preview FINRA's 2019 priorities.