On 13 September, FINRA fined JPMorgan $1.1mn for trade order system. J.P. Morgan Securities LLC fined in relation to order management systems (OMS). Alleged Violations Followed creation of separate OMS for cash institutional clients, and retail clients. Did not account for filter in old OMS causing over-advertisement of trade volume. Erroneously captured volume already advertised…
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Italy Consob Whistleblowing Powers
On 13 November, Consob proposed rules on whistleblowing protections. MiFID II requires firms to adopt procedures to enable staff report rule violations. Rules cover financial consulting firms, market operators and communication firms. Provisions have been extended to the operators of equity crowdfunding platforms. Firms are required to approval internal reporting systems by administrative board. Communication…
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U.S. DoJ $586mn Western Union
On November 13, 2017, DoJ begun redress process to provide recovery to WU fraud victims. Victims of fraud who sent a money transfer through WU may be eligible compensation. DoJ will send petition remission to over 500,000 potential victims about making claim. FTrC also alerted consumers that were victims of WU, that they could…
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U.S. DoJ Pay-to-Play NYS Pension
On 8 November 2017, DoJ said that Kang pleaded guilty in pay-for-play bribery scheme. Background: Deborah Kelley, was ex-MD of institutional fixed income sales at a broker dealer. Bribery Kelley participated in scheme involving the NY State Common Retirement Fund. Bribed official with control over investment of $50bn State pension fund assets. Directing business…
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U.S. MSRB Streamline Series 52 Exam
On 8 November, MSRB revised series 52 into a specialized knowledge exam. In advance of FINRA 1 October 2018 issue of Securities Industry Essentials (SIE) exam. Aims of Exam MSRB worked with FINRA in developing SIE exams, to streamline duplicative testing. General knowledge test is traditionally covered in several representative-level exams. MSRB supported goal to…
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U.S. FINRA Capital Acquisition BD
On 6 November 2017, FINRA issued rules on pay-to-play and capital acquisition brokers (cabs). Rules become effective on 6 December 2017, the text of the rules is set forth in Attachment A. Background: Scope of Activity Applies to firms that are solely corporate financing firms that advise companies on M&A. Advise issuer on raising debt…
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