|  03-04-21

Are Low-Priced Securities a Backdoor to Fraud? FINRA Says Watch Out

On February 15, 2021, FINRA issued an alert warning firms to pay attention to risks associated with low-priced securities activities. The Notice highlights the basic compliance tools that should be reviewed to address current concerns, including a review of red flag indicators of suspicious activity, adequacy of monitoring systems, and systems for consistent and accurate reporting. In light of their concern that bad actors, looking to take advantage of market urgencies like the COVID pandemic, will continue to perpetrate “pump and dump” and other schemes that exploit those attributes, FINRA underscores the risks of low-priced security transactions as a compliance priority.

Read the article to learn about FINRA's concerns and recommendations for your practice.


Bates Research, Compliance and Regulatory Alerts  |  03-03-21

SEC Division of Examinations Announces 2021 Examination Priorities

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.


Bates News  |  03-02-21

Bates in the News

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.


Events  |  02-25-21

IAA 2021 Virtual Investment Adviser Compliance Conference, March 3-5, 2021

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 Research  |  02-24-21

In Brief: Regulatory Compliance Roundup

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

Events  |  02-24-21

Webinar - SIFMA Reg BI Developments: Family Office Relief and New SEC Exam Priorities

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 News  |  02-24-21

Bates Group Teams with Innova Learning to Train, Consult Financial Services Firms to Meet Regulatory Challenges

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.


Bates Research  |  02-18-21

Seeking Growth and a Sound Market, NYDFS Unveils New Cyber Insurance Risk Framework; FINRA and NASAA Heighten Cyber Focus

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.


Events  |  02-12-21

Connect with Bates at the 2021 SIFMA AML and Financial Crimes Conference to Build and Improve Your FC Program

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.


Bates Research  |  02-11-21

How Will FINRA’s New Report on Examination and Priorities Impact Your Firm 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.


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