Journal of Investment Compliance: Volume 20 Issue 3

FINRA’s disciplinary actions in 2018:Increased fines ordered with significant drop in number of cases

Brian Rubin, Adam Pollet

To analyze FINRA’s 2018 disciplinary actions, the issues that resulted in the most significant fines and restitution, and the emerging enforcement trends from 2018 and beyond.

FINRA relaxes restrictions on pre-inception performance data

Richard F. Kerr, Matthew J. Rogers

To explain the significance of a recently issued interpretive letter in which FINRA staff agreed to permit the use of pre-inception index performance data by passively managed…

Blockchain and cryptocurrencies: a cross-border conundrum

Michael L. Spafford, Daren F. Stanaway, Sabin Chung

To analyze the CFTC’s approach to regulating cryptocurrencies and blockchain technologies in light of their cross-border nature, limitations on the CFTC’s extraterritorial…

FINRA 529 Plan Share Class Initiative encourages firms to self-report violations

Susan Light, James Normile, Leonard Licht

To explain FINRA’s new 529 Plan Share Class Initiative, which encourages broker-dealers to self-report violations.

Cryptoassets consumer research points to ignorance and risky behaviour

Bradley Rice, Bisola Williams

To review the findings of the Financial Conduct Authority's consumer research on cryptoassets.

SEC approves Nasdaq rule change to permit direct listings without an IPO

Helene R. Banks, Bradley J. Bondi, Charles A. Gilman, Elai Katz, Geoffrey E. Liebmann, Ross Sturman, Nicholas S. Millington

To explain the rule changes in Nasdaq’s new Listing Rule IM-5315-1, approved by the US Securities and Exchange Commission (SEC) on February 15, 2019, that permit direct listings…

Smart contracts that violate the Commodity Exchange Act: which parties are liable?

Nikiforos Mathews, Jonas Robison

The US Commodity Futures Trading Commission (CFTC), to date, has not directly addressed how liability for Commodity Exchange Act (CEA) violations involving blockchain or…

CFTC enters the market for anti-corruption enforcement

Alice S. Fisher, Douglas K. Yatter, Douglas N. Greenburg, William R. Baker III, Benjamin A. Dozier, Robyn J. Greenberg

This paper aims to analyze the March 6, 2019 enforcement advisory in which the Division of Enforcement (Division) of the US Commodity Futures Trading Commission (CFTC or…

SEC reporting obligations for insiders and large traders under Section 13 and Section 16 of the Exchange Act

Arthur L. Zwickel, Keith D. Pisani, Alicia M. Harrison

The purpose of this paper is to provide investment advisers, broker dealers, individual investors and other securities firms with a current and detailed summary of the reporting…

FinCEN Issues guidance to synthesize regulatory framework for virtual currency

Mike Nonaka, Jenny Konko, Cody Gaffney

To summarize FinCEN’s new interpretive guidance on how its regulations apply to business models involving convertible virtual currencies (“CVCs”).