FiSolve Weekly News Digest (May 12, 2023)

Here is what we are reading in the news this week.

More cases around the use of text messaging.?The U.S. Securities and Exchange Commission charged two broker-dealer firms with “pervasive and longstanding” use of off-channel communications.?The SEC found employees at these firms often communicated off-channel about securities business matters on their personal devices, using messaging platforms, such as WhatsApp. ?Most of these communications were not retained pursuant to applicable recordkeeping requirements.?The firms agreed to pay penalties of $15 million and $7.5 million, respectively.?Read more at https://www.sec.gov/news/press-release/2023-91.

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The Federal Deposit Insurance Corporation (FDIC) Board of Directors approved a notice of proposed rulemaking, which would implement a special assessment to recover the cost associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank.?The estimated cost is currently close to $16 billion.?The FDIC said banking organizations with total assets over $50 billion would pay more than 95 percent of the special assessment. No banking organizations with total assets under $5 billion would be subject to the special assessment.?Read more at: https://www.fdic.gov/news/press-releases/2023/pr23037.html.

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Citing remarks made at a conference from regulators in the United States and United Kingdom, as well as crypto industry participants, Reuters reported on the ramifications caused by a "fire hose" of differing regulatory approaches to cryptoassets.?The result is a lack of global consensus needed to attract established investors that would create a more mature crypto market.?Read more at https://www.reuters.com/technology/crypto-firms-call-global-consensus-instead-fire-hose-rules-2023-05-10/.?

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Staff of the?U.S. Securities and Exchange Commission?issued a Risk Alert, providing observations of its examination findings concerning LIBOR-transition preparedness of investment advisers and investment companies. U.S. Dollar LIBOR, formerly the London Interbank Offered Rate, is scheduled to be discontinued after June 30, 2023.?The Risk Alert covers key areas firms should keep in mind as they prepare for the transition away from LIBOR. Read more at https://www.dhirubhai.net/posts/fisolve_risk-alert-observations-from-examinations-activity-7062542078987104257-PYfh?utm_source=share&utm_medium=member_desktop

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