FiSolve Weekly News Digest (October 4, 2024)

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

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Advisory Firm Charged with MNPI Policies Failures

The U.S. Securities and Exchange Commission announced settled charges against a registered investment adviser for failing to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information (MNPI) relating to its participation on ad hoc creditors’ committees.? The order finds adviser personnel regularly participated on ad hoc creditors’ committees where participants may receive MNPI. ?However, the firm failed to establish, maintain, and enforce appropriate policies and procedures.? Read more at https://www.sec.gov/files/litigation/admin/2024/ia-6737.pdf.?

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Broker-Dealer Charged in Spoofing Case

The U.S. Securities and Exchange Commission announced charges against a registered broker-dealer for manipulating the U.S. Treasury cash securities market through an illicit trading strategy known as “spoofing.” ?Spoofing?occurs when traders place market orders and then cancel them before the order is ever fulfilled, creating an illusion of supply and demand for the traded asset.? The order that while the firm had policies and procedures prohibiting market manipulation, including spoofing, it lacked meaningful controls in certain instances.? The firm was also charged for failing to supervise the then-head of its U.S. Treasuries trading desk, who allegedly made hundreds of illegal trades over a 13-month period.? The firm has also entered into a deferred prosecution agreement with the U.S. Department of Justice and has separately agreed to pay a fine to the FINRA to resolve related charges.? In total, the firm has agreed to pay more than $27 million in fines and penalties ??Read more at https://www.sec.gov/files/litigation/admin/2024/33-11314.pdf.? ??

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Bank Nears Guilty Plea on Criminal Charges for U.S. Unit in Money-Laundering Probe

The Wall Street Journal is reporting a U.S. Bank is nearing a possible guilty plea to criminal charges that its U.S. retail bank failed to curb a rash of money laundering tied to Chinese crime groups and illicit fentanyl sales.? The U.S. Department of Justice has alleged the bank was reckless in failing to build and maintain systems that flagged and prevented money laundering.? The article notes Chinese money-laundering groups have emerged as a prominent threat to the U.S. financial system in recent years, teaming up with Mexican cartels to move profits from the sales of illicit fentanyl and other drugs back to traffickers by using U.S. banks and elaborate trade-based money-laundering schemes.? Read more at https://www.wsj.com/finance/regulation/td-nears-guilty-plea-on-criminal-charges-for-u-s-unit-in-money-laundering-probe-720489a8?st=7uxAXM&reflink=desktopwebshare_permalink.?

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Report Finds Managers Facing Increased Incidents of Burnout

A recent report from workforce data analytics platform meQuilibrium finds more managers at organizations are suffering from burnout.? Compared with non-managers, managers are 36% more likely to say they are feeling burned out, and 24% more likely to consider quitting their job in the next six months.? The report finds managers?often feel the pressure of balancing team member needs with meeting organizational goals.? This often occurs while feeling under pressure and with assistance of limited tools.? The report offers suggestions for companies to support managers (including resources like Villyge ) and outlines characteristics of more successful managers.? Access the report at https://go.mequilibrium.com/rs/553-GRV-433/images/meQ-Build-a-Better-Manager.pdf.? ?????????? ??

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SEC Enforcement Director to Depart Agency

The U.S. Securities and Exchange Commission announced Gurbir Grewal , Director of the Division of Enforcement, will depart the agency, effective Oct. 11, 2024. ?Upon Mr. Grewal’s departure, Sanjay Wadhwa, the Division’s Deputy Director, will serve as Acting Director, and Sam Waldon, the Division’s Chief Counsel, will serve as Acting Deputy Director.? During Mr. Grewal’s tenure, the SEC brought over 2,400 enforcement matters resulting in orders for more than $20 billion in disgorgement, prejudgment interest, and civil penalties, and brought more than 340 industry bars against individuals.? Read more at https://www.sec.gov/newsroom/press-releases/2024-162.?

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ESMA Publishes its 2025 AWP

The EUROPEAN SECURITIES AND MARKET AUTHORITY (ESMA) has published its 2025 Annual Work Programme (AWP).? The report affirms ESMA’s strategic orientation and commitment to safeguarding resilient, transparent, and sustainable European financial markets.? According to the report, a significant portion of ESMA’s work in 2025 will comprise policy work to facilitate the implementation of the large number of mandates received in the previous legislative cycle, and the preparation of new mandates, such as the European Green Bonds and the ESG Rating Providers Regulations.? Following the adoption of EMIR 3, ESMA will take on new responsibilities and develop a substantial number of technical standards, including for the new Active Account Requirement.? Read more at https://www.esma.europa.eu/sites/default/files/2024-10/ESMA22-50751485-1488_Annual_Work_Programme_2025.pdf.? ?

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