News in Personal Trading Software & Compliance Monitoring Tools

What’s in the news: the top five compliance articles for May 28 – June 10, 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 June 10, 2022.

Top 5 Compliance Articles

A Step-by-Step Guide on Selecting and Implementing Regtech – Author Michael Madden

In a recent interview, ComplySci Chief Executive Officer (CEO) Amy Kadomatsu spoke with Wealth Solutions Report about the necessary steps financial firms should take when selecting a best-fit compliance technology solution.

“To select the right technology partner, a firm should evaluate several key elements including expertise, ability to customize, ongoing customer support and how often the company enhances or adds to its offering.

Industry expertise. Does the provider have expertise in wealth management? Does its experience and client base match closely with the firm’s needs? You don’t want to discover a partner doesn’t understand your business after the fact.

Customizable technology. Can you customize the technology to not only meet your current needs, but also future developments? This is the perfect time to consider your five-year growth plan and if the firm is going in a direction that will still match the partner’s expertise down the road.

Support. Does the potential partner have a reputation for good after-sales support and service? The less technology resources you have in house, the more important this question becomes.

Innovation. Is the potential provider an innovator who actively strives to stay on top of the latest product developments, adapting to market needs and evolving legal and regulatory landscapes?”

SEC chief takes aim at payment-for-order flow in sweeping plans for stock markets – Authors Lydia Beyoud and Katherine Doherty

“Wall Street’s top regulator previewed a set of sweeping changes to rules underpinning the U.S. stock market, setting up a major clash with some of the biggest names in equity trading.

Securities and Exchange Commission Chair Gary Gensler said he’s asked the agency’s staff to weigh the moves with the aim of making the $45 trillion U.S. equities market more transparent and fair.”

U.K. to Embrace Stricter Standards Around Sanctions Enforcement – Author Dylan Tokar

For financial firms in the United Kingdom, sanctions due diligence has come under increased scrutiny with heightened enforcement set to begin June 15.

“Starting June 15, the U.K.’s Office of Financial Sanctions Implementation won’t have to prove that companies or individuals who violate the country’s sanctions measures knew or should have known they were violating the rules.

Instead, sanctions violations will be evaluated by the OFSI on a strict liability basis—meaning that the agency will only have to prove a sanctions violation occurred, not what a company or individual knew about the violation.

The change, which was made by the U.K. government in an economic crime bill passed in March, brings the U.K. regime closer to the model used to enforce sanctions in the U.S.”

Sweeping US crypto legislation targets stablecoins, mining – Author Bloomberg News

“A sweeping bill from a bipartisan Senate duo would buttress rules pertaining to some of the hottest issues facing the crypto industry, including sanctions compliance, stablecoin oversight and energy usage.

The legislation, introduced Tuesday by Wyoming Republican Cynthia Lummis and New York Democrat Kirsten Gillibrand, is one of the most ambitious attempts to regulate the volatile asset class. While chances of passage are slim ahead of November’s midterm elections, it could act as a starting point for negotiations next year.”

SEC’s Gensler speaks Wednesday, and rules that overhaul market operations could be coming – Author Bob Pisani

“SEC Chair Gary Gensler is trying to make good on his promise to address what he believes are deficiencies in the U.S. trading system…

While the SEC has been silent so far on what they are proposing to do, industry participants have quietly been saying that Gensler will likely use a speech at the Piper Sandler Global Exchange Conference on Wednesday to float several proposals.” 

Potential rule proposals could pertain to concerns regarding payment for order flow, trade size and market structure.