News & Events

Significant regulatory developments are taking place in the variable annuity and life insurance market that are intended to encourage investors to make more informed decisions about these financial products. Along with the SEC’s announcement of an extensive new rule proposal that would leverage technology and create a “layered disclosure approach” to variable annuities and life insurance contracts, the SEC Office of Investor Education (“OCIE”) issued a Bulletin that offers a basic primer on these instruments. This comes a week after state insurance regulators met to revise the NAIC “Suitability in Annuity Transactions Model Regulation.” Bates Research takes a closer look at these recent developments.

On October 31st, the SEC Office of Compliance Inspections and Examinations issued a Risk Alert informing investment advisers, investors and other market participants of the most common compliance deficiencies related to the so-called Cash Solicitation Rule (Investment Advisers Act, Rule 206(4)-3).

Bates is pleased to introduce the next new mini-interview we are sharing on the occasion of Bates Group President and CEO Jennifer Stout’s 25th anniversary with Bates. In this video segment, Jennifer discusses leadership lessons she has learned over the years that help her connect to clients and support employees and the firm.

In a new report to Congress, the Federal Trade Commission (“FTC”) compiled its latest data on the widespread problem of financial fraud perpetrated against elderly consumers. The agency also highlighted 2017-2018 enforcement actions and described its outreach and education initiatives to combat senior financial abuse. This article highlights the findings in the latest FTC report.

In June, Bates reported on an SEC Draft Strategic Plan for Fiscal Years 2018 - 2022. The development of the plan is required by federal statute as a means to assess “agency performance and improvement.” The issuance of the Draft Plan was immediately followed by the submission of testimony by SEC Chair Jay Clayton before the House Committee on Financial Services. At that hearing, Chair Clayton expounded on the short draft strategy, describing in greater detail the future agenda for the agency. Now, after the required comment period, the agency’s Final Strategic Plan has been released. Chair Clayton describes the 11-page plan as a “forward-looking framework” that focuses “on the most important goals and initiatives” for fulfilling the agency’s mission. Bates Research takes a closer look.

In a few weeks, a working group of the National Association of Insurance Commissioners (NAIC) will meet again in a continuing effort to complete a revision to the organization’s Suitability in Annuity Transactions Model Regulation. The goal of the working group remains a revision of the standards and procedures for providing appropriate recommendations to consumers “that result in transactions involving annuity products.” The group's progress took a detour in July when the New York Department of Financial Services (NYDFS) issued a final regulation establishing its own “best interest” standard of care for recommendations of both annuity products and life insurance products.

Bates Research takes a look at some of the issues as they are playing out with respect to the very real New York requirements on the horizon, and the NAIC’s efforts to revise the standards on annuity products.

Bates is pleased to introduce the first of several new mini-interviews we will be sharing over the coming weeks on the occasion of Bates Group President and CEO Jennifer Stout’s 25th anniversary with Bates. In this video, "The Evolution of Bates," Jennifer discusses driving change to meet client and industry needs.

Bates Group is pleased to welcome accomplished financial services attorney Michael J. Lacek to Bates Group as an Affiliate Consultant and Expert. With over 35 years of litigation and regulatory experience, Mr. Lacek brings a wealth of knowledge and expertise in the areas of retirement and insurance products, including suitability and sales practices of life insurance and annuity products; securities and insurance regulatory matters; and large complex commercial transactions and litigation.

On October 1, FINRA announced that it will consolidate its Examination and Risk Monitoring Programs under a single structure. When completed in 2019, the move will incorporate business conduct, financial compliance and trading compliance under one unified framework. 

On September 25th, Michael S. Pieciak, Commissioner of the Vermont Department of Financial Regulation, took the reins as the 101st president of the North American Securities Administrators Association (“NASAA”). That same day, NASAA’s Investment Adviser Section proposed a model rule that would require investment advisers to adopt policies and procedures regarding information security. NASAA also published the results of a series of “coordinated examinations of broker-dealer firms” that reviewed the heightened supervision plans of firms for registered representatives. Bates Research takes a closer look at these developments.

Bates Group Managing Director NY/NJ Susan L. Harper will be speaking on the Practicing Law Institute’s Securities Arbitration 2018 panel, “A Practicum on the Use of Experts,” in New York City, September 26, 2018.

Despite RegTech’s “potential to fundamentally transform how securities industry participants perform their compliance obligations,” RegTech tools also raise “new challenges and regulatory implications” that affect “supervision, vendor management, data privacy and security.” That is the explicit assumption underlying a new FINRA white paper summarizing the results of the SRO’s extensive outreach on the subject. Bates Research takes a closer look.

Bates Managing Director of Compliance Solutions Robert “Bob” Lavigne was quoted by Investment News in its in-depth story entitled “SEC Advice Rule Contains a Huge Hole.” 

Bates Group is pleased to welcome Gerald (“Jerry”) Baker, Financial Services Industry Leader and Consultant, to Bates Compliance Solutions. With over 45 years of Financial Services and Compliance experience, Mr. Baker brings a wealth of industry knowledge and expertise, having developed compliance programs and managed Compliance Department functions at major U.S. securities and financial services firms. He provides compliance and supervisory consulting and training, serving clients at financial services firms, trade associations and regulatory organizations.

FINRA is seeking input on proposed changes to the Securities Industry Continuing Education Program just as the SEC is considering responses to its request for comments on whether investment advisers should be subject to similar obligations. IAA President Karen Barr and NASAA President Joseph Borg have both submitted comments to the SEC. Bates Research has the latest developments.

Bates Group LLC announces the introduction of Bates Investor Risk Assessment (BIRA), a unique breakthrough program to protect broker-dealers and registered investment advisors (RIAs) and their vulnerable clients — seniors and retirees, minors, and those with diminished capacity — while continuing to meet regulatory expectations.