Investor Protections

The Securities and Exchange Commission cited multiple failures in LPL Financial LLC’s anti-money laundering program in a cease-and-desist order calling for the investment advisor to pay an $18 million civil money penalty and to make documented improvements to its fraud mitigation policies and procedures. Read on »

The Securities and Exchange Commission levied $60 million in civil penalties against Wells Fargo and Merrill Lynch for alleged failures related to their cash sweep programs. Specifically, the agency claimed the firms did not follow federal laws requiring investment advisors to consider clients’ best interests. Read on »

The U.S. Treasury Department’s Financial Crimes Enforcement Network announced that reporting companies are not currently required to file beneficial ownership information in light of recent legal developments. This news follows a recent federal court decision in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al. Read on »

Federal Deposit Insurance Corp. executed a passivity agreement with The Vanguard Group on Dec. 27 intended to mitigate risks of large investors from exerting undue influence over financial institutions in which they hold significant stakes. The agency indicated such agreements are necessary as a means of maintaining integrity and stability of the financial system. Read on »

Silvergate Capital Corp. and former executives are faced with fines and charges over anti-money laundering law violations connected, in part, to misconduct by now-defunct crypto exchange FTX. Charges were filed by the Federal Reserve, the Securities and Exchange Commission and the State of California. Read on »

Artificial intelligence (AI) has opened up new avenues for professionals to advance their business operations or run afoul of federal laws. Two recent orders by the Securities and Exchange Commission (SEC) describe an example of the latter – “AI washing.” Accused of making false and misleading statements about their use of AI, two firms recently paid $400,000 in civil money penalties to the SEC. Read on »

The Federal Reserve and the Office of the Comptroller of the Currency coordinated separate actions against JPMorgan Chase & Co. for alleged deficiencies in the firm’s trade surveillance program, which the company previously disclosed. The company agreed to pay approximately $348.2 million in total fines levied by the two agencies and undertake specific corrective actions. Read on »

The Treasury Department’s Financial Crimes Enforcement Network proposed a rule to extend its authority under the Bank Secrecy Act to cover certain investment advisors. Regulators published a fact sheet about the proposal and a Treasury report assessing the types of risks posed by certain investment advisors. Read on »

The Securities and Exchange Commission (SEC) exposed an old fraud with a modern twist used to swindle crypto investors out of more than $1.7 billion. The SEC’s complaint said the defendants operated a pyramid scheme advertising significant profits stemming from non-existent revenue streams. Read on »

Morgan Stanley and a former executive were charged with fraud and failure to enforce policies and procedures related to confidential information in a $249 million settlement with the Securities and Exchange Commission. Read on »