On Jan. 7, C-IIROC fined Worldsource C$200k for fee conflict. Alleged Violations From 2010-17, firm failed to establish and maintain system of internal controls. or supervision that is reasonably designed to achieve compliance of IIROC rules. To deal fairly with clients on fees, contrary to Dealer Member Rules 38.1, 2500. Failed to take steps to identify or address…
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CAL INS Wells Fargo $10mn Fine
On Jan. 2, CAL INS fined Wells Fargo $10mn re insurance sales. Wells Fargo agreed to pay a $10mn penalty, as part of a settlement agreement. Follows 2017, accusation to revoke insurance license for practices. Alleged Violations Improper insurance sales practices related to online insurance referral program. Consumers were signed up and charged for insurance…
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HKMA JPMorgan AML HK$12.5mn
On Dec. 28, HKMA fined JPMorgan HK$12.5mn for AML breach. JPMorgan Chase Bank, NA, Hong Kong Branch settlement for AML contraventions. Per S. 19(2) and 19(3) of schedule 2 to AMLO (Chapter 615) of law of Hong Kong. Alleged Violations Bank contravened HK laws regarding AML and counter-terrorist financing control. Failed to establish procedures on…
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FINRA M, Stanley AML $10mn
On Dec. 26, FINRA fined Morgan Stanley $10mn for AML failures. Morgan Stanley Smith Barney fined for failures in AML program and supervision. Charges Had AML program and supervisory failures that spanned a period over five years. Used surveillance system, that did not receive critical data from several systems. Undermined surveillance of tens of billions…
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SEC Charges Two Robo-Advisers
On Dec. 21, SEC charged two robo-advisors with false disclosures. Wealthfront Advisers LLC (formerly known as Wealthfront), and Hedgeable Inc. Wealthfront Alleged Violations Wealthfront with $11bn client assets made false statements re tax-loss harvesting. Disclosed to that by employing its tax-loss harvesting strategy it would monitor all client accounts for transactions that might trigger a…
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SEC $1.8mn Fine Fund Disclosure
On Dec. 21, SEC fined IAs $18mn for fund disclosure violations. American Portfolios Advisors, PPS Advisors, and CEO/CIO, Lawrence Passaretti. Invested clients in mutual fund share classes that paid 12b-1 fees to the firms' investment adviser representatives (IARs), even when cheaper class available. Alleged Violations Firms did not disclose conflicts of interest, violated duty to…
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