Compliance & Ethics

The U.S. Securities and Exchange Commission (SEC) today announced charges against Atom Investors LP, a Texas-based registered investment adviser, for violations of federal securities laws related to recordkeeping. The firm failed to maintain and preserve off-channel communications, a key obligation under the SEC's recordkeeping provisions. Despite the serious nature of these violations, the SEC opted not to impose a civil penalty, citing Atom Investors' self-reporting, substantial cooperation, and prompt efforts to remediate the situation.

The Commodity Futures Trading Commission (CFTC) has imposed a $2 million civil monetary penalty on Piper Sandler Hedging Services LLC for alleged recordkeeping violations, but the decision has ignited a fierce debate within the commission itself. Two commissioners have issued dissenting statements, questioning both the evidence supporting the charges and the CFTC's jurisdiction in the matter.

The Office of the Comptroller of the Currency (OCC) has revealed its latest enforcement actions, emphasizing the regulator's continued focus on maintaining the integrity and stability of the national banking system. Targeting two major banks and a former bank employee, these actions highlight the OCC's commitment to addressing issues ranging from unsafe banking practices to financial crimes.

The Securities and Exchange Commission (SEC) announced today that Macquarie Investment Management Business Trust (MIMBT), a registered investment adviser, has agreed to pay $79.8 million to settle charges of fraud. The case involves the overvaluation of illiquid assets and the execution of unlawful cross trades that favored certain clients over others.

The Financial Industry Regulatory Authority (FINRA) has taken action against two broker-dealers, TradeUP Securities, Inc. and Dalmore Group LLC, for various regulatory violations. Both firms have agreed to significant fines and censures without admitting or denying the findings.

The Securities and Exchange Commission (SEC) has taken action against First Horizon Advisors, Inc., a registered broker-dealer, for failing to comply with Regulation Best Interest (Reg BI). The charges, announced on September 18, 2024, specifically relate to First Horizon's recommendations of structured notes, a type of complex derivative security.

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have both issued new policy statements on bank merger transactions. This aligned approach, announced on September 17, 2024, aims to bring unprecedented transparency and clarity to the bank merger review process.