Contact Bates Today

Bates Group is with you every step of the way. Contact us today for more information on how our End-to-End Solutions can help your firm.

Get My Solution Started

Bates Group Logo

We’re looking for talent! Interested in a career at Bates Group? Visit our Careers page.

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

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.

Read More

The State of Play on Cryptocurrency Regulation
Image © [Wit] /Adobe Stock

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.

Read More

New Congress, New Priorities for Financial Services in 2019

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.

Read More

FINRA Rolls Out Its 529 Plan Share Class Initiative - Is Your Firm Ready to Address It?

02-01-19

FINRA Rolls Out Its 529 Plan Share Class Initiative - Is Your Firm Ready to Address It?

On the heels of the SEC’s 12b-1 Share Class Initiative, FINRA just announced its own Share Class Initiative. FINRA’s Share Class Initiative sets a deadline of April 1, 2019 for firms to self-report 529 savings plan share class violations and to provide FINRA with a plan to remediate harmed clients.

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

Read More

FINRA Highlights Online Platforms, Mark-Up Disclosure & Compliance, RegTech in 2019 Exam Priorities
Image © [Andriy Blokhin] /Adobe Stock

01-24-19

FINRA Highlights Online Platforms, Mark-Up Disclosure & Compliance, RegTech in 2019 Exam Priorities

In his latest annual priorities letter to members, FINRA Chief Executive Officer Robert Cook emphasized that FINRA will be monitoring firm developments “to identify risks and assess their prevalence and impact.” He noted that the 2019 letter highlights new areas of focus that will allow member firms to determine whether certain issues “are relevant to their businesses” and how they might be best addressed. In addition, Mr. Cook explicitly stated that these highlighted areas do not affect the ongoing monitoring and enforcement efforts detailed in previous priorities letters. In this article, Bates will review the highlights from FINRA’s newly released 2019 Risk Monitoring and Examination Priorities Letter. We once again list and compare the new priorities to preceding years in the attached Bates’ 2019 FINRA Chart.

Read More

New FINRA Report Details Effective Practices for Broker-Dealer Cybersecurity Compliance
Image © [Andriy Blokhin] /Adobe Stock

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.

Read More

Bates Group at the 2019 NYSBA Annual Meeting

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.

Read More

OCIE to Prioritize Protection of Retail Investors in 2019 Examinations
Image © [Kristina Blokhin] /Adobe Stock

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.

Read More

Bates Group Promotes Benjamin Pappas to President

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.

Read More

FINRA Issues 2018 Report on Examination Findings
Image © [Andriy Blokhin] /Adobe Stock

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.

Read More

Compliance in the Age of Robo Investment Advice
Image © [Elenathewise] /Adobe Stock

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.

Read More

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

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.

Read More