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Bates News, Industry News  |  03-12-19

Bates News and Events This Week

This week at Bates Group: CEO Jennifer Stout is recognized by the Florida Securities Dealers Association in their March Member Spotlight, Managing Director Alex Russell is quoted in an Investment News article about 529 plan costs, and Susan Harper will be hosting a chat with the Attorney General of New York, Letitia James, at the NYSBA Women in Law Section's inaugural Trailblazer event on March 13, 2019. Bates Group will also be exhibiting at the 2019 IAA Compliance Conference March 14-15 in Washington, D.C.

Bates News, Compliance and Regulatory Alerts  |  03-08-19

Alert: FINRA Releases FAQs with Important Information About Its 529 Plan Share Class Initiative

FINRA’s 529 Share Class Initiative self-reporting deadlines have been pushed back one month to allow firms additional time to review their supervisory systems, procedures and past transactions to identify sales of 529 plan share classes. The extension also allows firms more time to consider additional information made available by FINRA (FAQs) and to determine whether to self-report.

Bates News, Bates Research  |  03-07-19

New CFPB Report finds SARS Filings on Elder Financial Exploitation Quadrupled from 2013 to 2017

A recent analysis by the Consumer Financial Protection Bureau (CFPB) of Suspicious Activity Reports (SARs) related to elder financial exploitation provides the most detailed look to date at the size and scope of this issue. Bates Group has been following the issue of senior financial exploitation for some time. The findings from the CFPB analysis affirm previous reports that senior financial abuse is pronounced, but that the current number of SARs filings “likely represent a tiny fraction of actual incidents.” In this article, we review the findings and recommendations contained in the new Report.

Bates News, Compliance and Regulatory Alerts  |  02-27-19

Four Challenges Facing Firms Ahead of FINRA’s 529 Share Class Initiative April 1st Deadline

Firms participating in FINRA’s 529 Plan Share Class Initiative should act now to meet the regulator’s approaching April 1st deadline to self-report violations and submit a plan to remediate harmed clients. Bates looks at four distinct challenges facing firms as they prepare their response.

Bates News, Bates Research, Compliance and Regulatory Alerts  |  02-25-19

Planning Your Response to FINRA’s 529 Initiative — Q&A with Bates Managing Director Alex Russell

Bates Research recently conducted a Q & A session with Alex Russell, Managing Director of Securities Litigation & Regulatory Enforcement at Bates, to discuss FINRA's new 529 Share Class Initiative. Alex talks about responding by FINRA's deadline and potential pitfalls firms should avoid when preparing their response.

Bates News, Bates Research  |  02-21-19

Latest Developments in Variable Annuities and Life Insurance

In our last review of developments concerning variable annuities and life insurance, Bates discussed the SEC’s issuance of a comprehensive new rule proposal intended to create a “layered disclosure approach” for regulating these products. That proposal was issued against the backdrop of an ongoing debate among state insurance regulators on revising model legislation on “Suitability in Annuity Transactions.” The National Association of Insurance Commissioners (NAIC) remains determined to create these standards and procedures for providing suitable recommendations to consumers, despite the likely impact and continuing uncertainty created by the unresolved SEC proposed Best Interest rulemaking.  

In this article, we update the most recent SEC action on variable contract disclosure as well as some important private sector activity, notably Ohio National Financial Services’ (“Ohio National”) strategic decision to pull out of the market for variable annuities.

Bates News, Compliance and Regulatory Alerts  |  02-15-19

Bates Group’s FINRA 529 Share Class Initiative Support for Firms

Last week, Bates sent a time-sensitive Alert concerning FINRA’s new Share Class Initiative -- similar to the SEC’s Share Class Initiative, except that FINRA’s focus is on 529 savings plans.

Bates has deep and proven experience and expertise in share class disclosure matters. To support firms facing FINRA’s 529 Plan disclosure and remediation initiative, Bates has created a plan that provides essential end-to-end steps and solutions to identify and address accounts and clients impacted by share class selection.

Bates News, Bates Research, Compliance and Regulatory Alerts  |  02-13-19

The State of Play on Cryptocurrency Regulation

For legislators and regulators, writing rules for crypto-related assets requires balancing the tension between innovation and entrepreneurship, and between sound markets and investor protection. Bates Research has previously described some of the definitional challenges which directly affect which agencies govern crypto assets. In this article, we review recent developments in the ongoing debate over regulating crypto, including legislative proposals, and regulatory activity by leadership at the SEC, the CFTC and FINRA.

Bates News, Industry News  |  02-11-19

Bates Group Welcomes New Managing Director Hank Sanchez

Bates is proud to welcome Hank Sanchez, Esq. as a Managing Director. Hank is a seasoned compliance and legal professional as well as a former regulator with both the SEC and FINRA.

Bates News, Bates Research  |  02-07-19

New Congress, New Priorities for Financial Services in 2019

The priorities of the congressional committees that oversee financial services are changing. The contours of that change are beginning to take shape as Democrats take control in the House of Representatives and leadership from both parties announce committee assignments. This article takes a look at the agendas of Representative Maxine Waters (D-CA), the new Chair of the House Financial Services Committee, and Senator Mike Crapo (R-Idaho), Chair of the Senate Banking Committee. Their dynamic will set the stage for potential political confrontation, possible bipartisan legislation, and certain administrative and regulatory oversight impacting the financial services industry.