On August 12, the UK’s Financial Conduct Authority (FCA) published a “Dear CEO Letter” (the Letter) for firms providing non-discretionary investment services that are experiencing an increase in levels of client money held in their accounts. Continue Reading COVID-19: FCA Publishes Dear CEO Letter on Increased Client Money Balances

On August 12, the Wolfsberg Group, an association of leading international financial institutions that aim to develop frameworks and guidance for the management of financial risk, published a statement on developing an effective anti-money laundering (AML) and counter-terrorist financing (CTF) program (the Statement). Continue Reading Wolfsberg Group Publishes Statement on Developing Effective AML and CTF Program

On July 29, the Attorneys General for the States of California, Illinois and New York (State AGs) filed suit seeking declaratory and injunctive relief in the US District Court for the Northern District of California (Complaint) against the Office of the Comptroller of the Currency (OCC), the primary federal regulator for national banks and federal savings banks (each, a Bank), in connection with the OCC’s issuance of its final “valid when made” rule that was effective on August 3 (VWM Rule). Continue Reading California, Illinois and New York File Suit Against OCC’s “Valid When Made” Final Rule

On July 31, the UK’s Financial Conduct Authority (FCA) updated its statement on how firms should handle complaints during the COVID-19 pandemic — indicating to the market in the process that the time for regulatory forbearance as a result of the pandemic is effectively over. Continue Reading COVID-19: FCA Statement on Handling Complaints

On July 31, the European Securities and Markets Authority (ESMA) published data for the systematic internaliser (SI) quarterly calculations for equity, equity-like instruments, bonds and, for the first time, other non-equity instruments under the revised Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation. Continue Reading ESMA Publishes Data for Systematic Internaliser Calculations for Equity, Equity-Like Instruments, Bonds and Other Non-Equity Instruments

On July 24, the Securities and Exchange Commission announced that the SEC and the Federal Deposit Insurance Corporation (FDIC) have adopted a final rule clarifying and implementing provisions relating to the orderly liquidation of certain brokers or dealers (covered broker-dealers) in the event the FDIC is appointed receiver under Title II of the Dodd–Frank Wall Street Reform and Consumer Protection Act. Continue Reading SEC and FDIC Adopt Final Rule on the Orderly Liquidation of Covered Broker-Dealers Under Dodd-Frank

On July 28, the Securities and Exchange Commission announced the creation of the Event and Emerging Risks Examination Team (EERT) in the Office of Compliance Inspections and Examinations (OCIE). The EERT will engage with financial firms about emerging threats and current market events so that it can provide expertise and resources to the SEC’s regional offices when critical matters, such as exchange outages, liquidity events, or cybersecurity or other operational resiliency concerns, arise. The EERT, through examinations and other engagement, also will ensure that firms are better prepared to address such threats and risks.

The SEC press release is available here.

On May 22, the Financial Industry Regulatory Authority (FINRA) issued a regulatory notice seeking comment on two proposed changes to the Trade Reporting and Compliance Engine (TRACE) reporting rules recommended by the Securities and Exchange Commission’s Fixed Income Market Structure Advisory Committee. The changes would require firms to identify (1) delayed treasury spot trades; and (2) corporate bond trades that are a part of a larger portfolio trade.

Interested parties are encouraged to comment by September 14, 2020. Further details and comment instructions are available in FINRA Regulatory Notice 20-24, which is available here.