FiSolve Weekly News Digest (November 29, 2024)

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

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DOJ and SEC Charge Former Global Bond Investment Firm Chief Investment Officer (CIO) with Over $600 Million Investment Adviser Fraud

U.S. Department of Justice and U.S. Securities and Exchange Commission charged a well-known bond investor with fraud, alleging he cherry-picked a series of trades to favor some clients while shifting losses to others.? The CIO allegedly assigned over $600 million in gains to favored clients and $600 million in losses to others, according to an indictment unsealed in Manhattan federal court Monday.??The complaint alleges the cherry-picking scheme involved placing trades and then waiting until later in the day before allocating them to client accounts (after seeing how the trades were performing).? If found guilty, the CIO faces a potential lengthy jail sentence, in addition to industry bars and substantial financial penalties.? Read more at https://www.justice.gov/usao-sdny/pr/former-chief-investment-officer-global-bond-investment-firm-charged-over-600-million and https://www.sec.gov/files/litigation/complaints/2024/comp-pr2024-187.pdf.?

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SEC Collects Record $8.2 Billion in Financial Penalties in 2024

The U.S. Securities and Exchange Commission said it collected $8.2 billion in monetary penalties for the fiscal year 2024, which ended on September 30, 2024.? This is the highest amount of fines in the agency’s history.? The record amount imposed in financial penalties—a nearly 60% increase from the more than $4.9 billion collected in fiscal year 2023—caps the tenure of agency Chairman Gary Gensler, who announced plans to step down once President-elect Donald Trump takes office.? ?Read comments from our CEO at https://www.dhirubhai.net/feed/update/urn:li:activity:7265830216290172928/.

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Musk Calls for “Deleting” Consumer Financial Protection Bureau (CFPB)

Elon Musk and Vivek Ramaswamy are expected to co-lead a newly created Department of Government Efficiency , which is intended to serve as an advisory or consulting organization providing recommendations or strategies for implementation by government leaders.? The group’s mission will focus on three major kinds of reforms, including regulatory rescissions, administrative reductions and cost savings.? In a post this week, Elon Musk called for deleting the Consumer Financial Protection Bureau , stating “there are too many duplicative agencies.”? Read more at https://x.com/elonmusk/status/1861644897490751865.?

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Report finds Leadership Succession Planning, Engagement and Development, and In-Person Connections are Among Companies’ Top 2025 Priorities

A report by 德勤 finds talent development has become a top business priority for the next 12 months at private companies. ?From leadership succession prep to apprenticeship and mentoring, private enterprises are not only focused on implementing employee development programs, but doing so in a way that increases employee engagement and productivity. ?Some organizations are opting for in-office initiatives, while others are leveraging hybrid work-friendly technology. Regardless of their approach, the survey of 100 private company executives highlights the critical importance of talent development strategies. ?The report contains statistics, trends, and takeaways related to the topic.? Access it at https://www2.deloitte.com/content/dam/Deloitte/us/Documents/deloitte-private/deloitteprivate-talent-development.pdf.?

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SEC’s Division of Trading and Markets Extends 15c2-11(b) Relief in Relation to Fixed Income Securities

The U.S. Securities and Exchange Commission ’s Division of Trading and Markets extended its no-action relief to brokers or dealers that publish or submit quotations, including continuous quotations, in a quotation medium, for fixed income securities if the broker or dealer has determined that the fixed income security or its issuer meets one of the criteria enumerated in its letter, or that there is current and publicly available financial information (consistent with Rule 15c2-11(b)) about the issuer.? Access the letter at https://www.sec.gov/files/investment/no-action/fixed-income-rule-15c2-11-no-action-letter-finra-112224.pdf.?

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FCA Seeks Further Views on Enforcement Transparency Proposals

The Financial Conduct Authority has published the second phase of its consultation on proposals for a measured increase in transparency about its enforcement investigations and has set out plans for further engagement after significant concerns were raised in relation to the original consultation.? This represents an apparent shift from an original focus on deterring wrongdoing, boosting transparency and encouraging whistleblowing.? Feedback is requested by February 17, 2025.? The FCA stated will continue meeting with firms, trade associations, consumer groups, the legal community and others. ?The FCA Board is then aiming to make a final decision in the first quarter of 2025.? Read more at https://www.fca.org.uk/news/press-releases/fca-seeks-further-views-enforcement-transparency-proposals

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FiSolve Announces the Launch of Compliance Anonymous

FiSolve announced this week the launch of Compliance Anonymous, ?a one-hour, cameras-off Zoom session where compliance professionals from across the industry can discuss the complexities of the role, share best practices, and seek insights from peers facing similar challenges. This session offers a secure, anonymous forum to ask questions, explore new ideas, and build connections that can help professionals approach compliance with renewed clarity and confidence. ?The first session is scheduled for 12 PM ET on December 11.? Read more and register at https://www.dhirubhai.net/feed/update/urn:li:activity:7267528934164938754/.?

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