On 16 October, FINRA ordered Wells Fargo to pay $3.4mn for ETP sales. To Wells Fargo Clearing Services LLC; Wells Fargo Advisors Financial Network LLC. Wells Fargo associates made unsuitable recommendations of volatility-linked ETPs. Related supervisory failures, $3.4mn restitution will be paid to affected customers. Allegations Between July 2010 and May 2012, some registered representatives…
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France AMF Long Equity Investment
On 13 October, AMF issued report on longer-term equity investments. Study on psychological blocks many savers have considering equity investments. AMF qualitative study, found misconceptions on equities were deeply entrenched. An in-depth learning approach is needed to establish long-term investor reflexes. To incite investors to diversify their savings without ruling out equity investments. AMF propose…
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U.S. and France Terror Financing
On 12 October, US and French Treasuries issued actions on terror financing. Meeting of US Treasury Secretary Mnuchin, and French Finance Minister Le Maire. Agreed measures to strengthen cooperation in the fight against terrorist financing. Sanctions Noted key role that targeted sanctions play in the fight against terrorist financing. Agreed to make full use of…
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Hong Kong HKMA Customer Address AML
On 11 October, HKMA, SFC issued AML guidelines on address verification. HKMA has been reviewing its anti-money laundering and counter-terrorism guidelines. Has agreed to remove the address verification requirement currently in the AML guide. FIs will only be required to collect address information without documentary evidence. For now absence of verification of address will be…
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Hong Kong SFC Bans Investment Consultant for Code of Conduct
On 11 October, the SFC banned Xu Tao for four months for code of conduct. Mr Xu Tao, a former investment consultant of China International Capital Corporation Hong Kong Securities Limited (CICC), banned for four months from 11 October 2017 to 10 February 201 Xu used his mobile phone and WeChat messaging application to accept…
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U.S. SEC Charged Michael Scronic with Fraud
On 5 October, SEC charged Scronic for IA Ponzi-like scheme. SEC charged Scronic for alleged lying to retail investors. Ponzi-like scheme of Falsifying Options Value. 42 friends and acquaintances lost over $21 Million. Scronic alleged scheme operated between 2010 -2017. SEC’s NY ARD Mehraban said, “Investors should be wary of complex, hard to understand investment…
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