News in Personal Trading Software & Compliance Monitoring Tools

What’s in the News: The Top 5 Compliance Articles for March 2022

Compliance innovation moves fast, but the news moves faster. To keep you and your team up to speed on the latest happenings and goings-on in the compliance world, we’ve aggregated the top five articles from the past few weeks to provide you with an in-depth look at the regulatory ecosystem.

Stay up-to-date and in the know on everything happening in the compliance world as of March 2022.

Top 5 Compliance Articles

It should be no surprise, two of our top articles focus on the recently released SEC 2022 Exam Priorities. However, included in the roundup is a broader theme of heightened regulations, specifically as it pertains to cryptocurrency and digital assets, both in the United States and abroad.

U.S. Securities Regulator Names Crypto, ESG Among 2022 Exam Priorities – Author Chris Prentice

With the release of the SEC’s 2022 Exam Priorities, firms can stop hypothesizing and start interpreting. Included in the priorities was a distinct focus on areas including cryptocurrency, ESG, cybersecurity, and private funds.

Wall Street Brokers Are Put on Notice by SEC Over Conduct Rules – Author Ben Bain

According to a recent bulletin by the SEC, broker-dealers and advisers are both subject to “similar codes of conduct when helping retail clients choose which type of account to open…The guidance touches on the controversial policy debate about conflict-of-interest rules, and what it means for brokers to act in the interest of their clients.” Of note for dealers, “Wednesday’s bulletin signals that the regulator is likely to keep the rule in place, but interpret it in a more stringent way.”

Finra Pinpoints Scope of Potential Liability for Compliance Chiefs – Author Mengqi Sun

“The Financial Industry Regulatory Authority said it would only take action against chief compliance officers when they fail to carry out specific supervisory responsibilities designated by the firm, and not in matters where they play an advisory role.”

While the SEC has yet to release a scope for CCO liability, the framework offered by FINRA provides guidance into the question of personal liability. The recent release offers additional considerations regarding “situations in which the compliance chief ignored multiple red flags and when the CCO doesn’t have proper support in terms of staffing and resources.”

U.K.’s FCA Looking to Hire Head of New Digital Assets Department – Author Belinda Cao

Looking for a new job? The FCA is hiring a Head of New Digital Assets Department, indicating the focal point that crypto and digital assets have become both locally and globally. “The head will need to build and lead a new crypto department that will lead and coordinate the FCA’s regulatory activity.”

Finra Board Approves Remote-Inspection Proposals, Sends Them to SEC – Author Mark Schoeff Jr.

Finra has approved new proposals which would make previously temporary remote inspection rules a permanent fixture. While many see this as a step towards the future, some have come out as opposed to the proposals on the basis that “offsite inspections shouldn’t become widespread because they’re not as effective as in-person examinations for detecting regulatory violations.” Prior to this approval, remote inspections were only approved through the end of this year. The proposals must now be approved by the SEC.