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December 11, 2018

Does your professional liability policy exclude coverage for claims arising out of multi employer welfare arrangements?

The DOL is proposing to allow advisers to aggregate new and existing clients in the same geographic area into one common 401(k) plan. RIAs and Broker-Dealers, […]
December 6, 2018

Compliance in the Age of Robo Investment Advice

In late August, four registered financial service firms settled SEC charges of misleading retail investors about the efficacy of their quantitative models. The SEC alleged that […]
December 2, 2018

Best Practices When Working with Expert Witnesses

Your relationship with your consulting or testifying expert is a critical component to your case. Mastering best practices when working with an expert will better support […]
November 30, 2018

BCS Alert: FINRA’s Susan Schroeder Previews 2019 Enforcement Priorities

At the November 2018 SIFMA C&L New York Regional Seminar, Susan Schroeder, FINRA’s Executive Vice President and Head of Enforcement, discussed some of FINRA’s enforcement priorities […]
November 5, 2018

Alert: OCIE Recommends IAs Review Compliance Procedures on Cash-Based 3rd-Party Client Solicitation

On October 31st, the SEC Office of Compliance Inspections and Examinations issued a Risk Alert informing investment advisers, investors and other market participants of the most common compliance […]
October 26, 2018

New York DFS Asserts Itself in National Annuities Standards Debate

In a few weeks, a working group of the National Association of Insurance Commissioners (NAIC) will meet again in a continuing effort to complete a revision […]
October 14, 2018

Millennial Marketing—Why It’s Vital and How to Shape It

While millennials in general may not be hot prospects, the young adult children of your clients are another matter. If you want to keep managing that […]
October 12, 2018

FINRA Consolidating Exam and Risk Monitoring Programs

On October 1, FINRA announced that it will consolidate its Examination and Risk Monitoring Programs under a single structure. When completed in 2019, the move will […]
October 8, 2018

NASAA Update: New Leadership, Cybersecurity Model Act for Investment Advisers, and Exam Results on Heightened Supervision for Broker-Dealers

On September 25th, Michael S. Pieciak, Commissioner of the Vermont Department of Financial Regulation (pictured above), took the reins as the 101st president of the North American Securities […]
October 4, 2018

Universal Life Insurance Saga

EDITOR’S OPINION CORNER I am sure that most of you saw the article in the Wall Street Journal, Insurance Policies Backfire on Retirees, which chronicled the […]
September 13, 2018

New Education Requirements on the Horizon for Broker Dealers and (Maybe) Investment Advisers

FINRA is seeking input on proposed changes to the Securities Industry Continuing Education Program (“CE Program”) just as the SEC is considering responses to its request […]
September 12, 2018

Introducing Bates Investor Risk Assessment – Protect Your Firm and Its Most Vulnerable Investors

Bates Group LLC announces the introduction of Bates Investor Risk Assessment (BIRA), a unique breakthrough program to protect broker-dealers and registered investment advisors (RIAs) and their […]
August 17, 2018

Treasury, OCC and FINRA Set the Stage for Fall Fintech Debate

As the summer winds down, regulators are positioning themselves for more oversight of the financial technology (“fintech”) sector. On July 30, the U.S. Treasury Department released […]
August 9, 2018

SEC Regulation Best Interest: Next Round

As the deadline for comments on SEC Regulation Best Interest draws to a close, echoes from the debate on the Department of Labor (“DOL”) fiduciary rule […]
August 2, 2018

Potential Claims Related to LJM Preservation and Growth Fund Collapse

In recent months, Winget Spadafora & Schwartzberg, LLP (“WSS”) has been engaged by numerous insurance E&O carriers, broker-dealers and their registered representatives, and registered investment advisors […]
July 22, 2018

FINRA Dispute Resolution Updates

FINRA recently issued a new fraud warning to member firms, highlighted certain changing rules and procedures for arbitrators, reminded arbitrators to stay current on their disclosures […]
July 16, 2018

Mitigate the Risk: Best Practices for Employee, Client and Third Party Due Diligence in the Financial Services Industry

Hiring the right talent, maintaining accountability for those you hire, and managing through the complex regulatory landscape has never been more important – and more challenging- […]
July 3, 2018

Strategic Plan Unveiled, Town Hall Kick-Off, Supreme Court & ALJs, New Elder Report

Just as the SEC was articulating a long-term agenda before Congress and pursuing a first-of-its-kind proactive investor advisory public outreach, the agency was forced to react […]
June 15, 2018

Fraud in the Workplace: New Data Reveals Top Controls to Detect and Prevent Fraud

Last month, the Association of Certified Fraud Examiners (ACFE) issued its 2018 Report to the Nations on Occupational Fraud and Abuse (“Global Fraud Study”). In the Global Fraud Study, the […]
June 7, 2018

Comparing Cyber Insurance policies

Cyber coverage is a growing area of business for the insurance industry.  Originally the market for this coverage was limited to a handful of Lloyd’s syndicates […]
June 7, 2018

FINRA Shares Exam Findings, Deficiencies That May Trigger Further Scrutiny

In our continuing coverage of FINRA’s 2018 Annual Conference, regulators and firm compliance professionals participated in discussions in a session titled “Common Examination Findings and Effective […]
May 24, 2018

FINRA Rolls Out Proposal for High Risk Brokers, Addresses Examination Enhancements

FINRA issued a series of significant proposals over the past few weeks that would 1) reinforce certain firm supervisory obligations concerning associated persons with a history […]
May 4, 2018

FINRA Regulatory Notice 18-13

On April 20, 2018, the Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 18-13, which seeks comments on proposed amendments to the Quantitative Suitability Obligation under […]
May 4, 2018

SEC “Best Interest” Rule Reaction, DOL Rule At Its End

It’s been two weeks since the SEC Best Interest Rule was unveiled, and the three-part proposal is drawing praise, criticism and much scrutiny. As expected, political […]
April 26, 2018

Regulators Offer More Guidance as AML Rules Near Effective Date

Away from the headlines, federal and state regulators continue to prepare financial institutions for their new anti-money laundering compliance obligations. In the past few weeks, the […]
April 23, 2018

Alert Update: SEC Mutual Fund Share Class Disclosures

The SEC Division of Enforcement announced a “Share Class Select Disclosure Initiative” intended to protect and reimburse investors from an adviser’s conflict of interest. The SEC […]
April 20, 2018

Alert: SEC Proposes “Regulation Best Interest”

At an open meeting, the Securities Exchange Commission voted 4-1 to propose a set of rulemakings and interpretations designed to establish clear relationship standards between broker dealers and […]
April 10, 2018

Crypto Currency Consulting

Compliance Risk Concepts (“CRC”) is pleased to announce the expansion of our comprehensive compliance support services into the evolving digital currency space. Call us today to […]
April 5, 2018

Ongoing Cyberthreats Targeting Your Data

Part 1 of 2 – This is the first in a two-part series looking at the current state of cyber protections in light of recent hacks, […]
March 18, 2018


In a pair of rulings issued within a month of each other, the Indiana Court of Appeals has held that the Continuous Representation Doctrine (the “CRD”) […]
March 11, 2018

Alert: New SEC Share Class Selection Disclosure Initiative

Over the past several years, the U.S. Securities and Exchange Commission (“Commission”) filed numerous actions in which an investment adviser failed to make certain required disclosures […]
March 8, 2018

FINRA Tackles Arbitration Procedure Issues

FINRA is stepping up its efforts to address a number of longstanding procedural issues in its arbitration forum. With proposals to (i) increase the likelihood of […]
March 6, 2018

MSRB Mark-Up Disclosure Rules: The Clock is Ticking

In a little more than ten weeks, new rules go into effect that require municipal securities dealers to disclose the mark-ups and mark-downs they charge when […]
February 28, 2018

Fintech Firms Race to Innovate, States and Regulators Voice Concerns

The pace of investment and activity in companies providing a technology-based solution to just about every aspect of the financial services industry soared in 2017. Forbes […]
February 28, 2018

A Peek Behind the Curtain: FINRA Publishes Budget, Financial Guiding Principles, Addresses Fees

FINRA followed up its recently-issued regulatory and examinations priorities letter with the publication of a 2018 annual budget summary containing financial guiding principles. This new disclosure is another first for […]
February 28, 2018

Annual Broker-Dealer Regulatory Review and Outlook

As 2017 ends and 2018 emerges on the regulatory horizon, we find ourselves in a position to look back on what has transpired over the course […]
February 28, 2018

Understanding FinCEN’s Customer Due Diligence (CDD) Final Rule

Compliance Risk Concepts presents Fast Facts: Customer Due Diligence, A Quick Guide To FinCEN’s New Requirements. It offers a snack-size snapshot of key points from our […]
February 5, 2018

Kutak Rock Attorney Wins Summary Judgment Regarding Annuity Distributions

Kutak Rock attorney Gil Boyce won a significant summary judgment for a major financial services client and one of its financial advisers who were accused of […]
January 25, 2018

Anti-Money Laundering Headlines for the New Year

Legislators, regulators and enforcement officials are providing a glimpse of what is likely to be a formidable year in the development of a new anti-money laundering […]
January 25, 2018

Annual Investment Advisor Regulatory Review and Outlook (2017)

As we kick off 2018, it’s important to take a look back across the regulatory landscape on what transpired over the course of 2017 and look […]
January 9, 2018

FINRA Announces 2018 Regulatory and Examination Priorities

FINRA has announced their regulatory and examination priorities for the upcoming year. You can read the letter, with an introduction by CEO Robert Cook, at the […]
January 4, 2018

State News to Watch in 2018

A flurry of year-end announcements reveals a determination by state advocates toward more aggressive state protection of investors and consumers. NASAA published results from a recent […]
November 16, 2017

Bates Alert: FinCEN Customer Due Diligence Rule Implementation Deadline Approaching

Covered financial institutions must assess and enhance their AML programs to be in compliance with the specific requirements of the new Rule by May 11, 2018. Is […]
November 9, 2017

President Signs New Elder Abuse Prevention and Prosecution Law as NASAA Rolls out New Guidance

Political momentum continues to drive lawmakers’ efforts to combat elder financial abuse. In our last report on the subject, Bates considered the current state of play as indicated […]
November 1, 2017

Expert Spotlight: David S. Zweighaft

David Zweighaft (CPA/CFF, CFE) is a Fraud Subject Matter Expert with over twenty-five years’ experience serving the legal and financial services communities as both a consultant and […]
October 12, 2017

NASAA Issues Annual Securities Enforcement Report and Expands Resources for IAs and BDs

In his first address to the North American Securities Administrators Association (NASAA), newly-elected and third-time President Joseph Borg identified key priorities for his upcoming term. He emphasized cooperation between state […]
October 5, 2017

New SEC, State Regulator Initiatives and Filings Amid Cyber Breaches

Testifying at an oversight hearing before the Senate Banking Committee on September 26, 2017, SEC Chairman Jay Clayton addressed concerns over the SEC’s disclosure of a 2016 cyber-security […]
September 28, 2017

Bates Group Introduces Arbitrator Evaluator™ — The Essential Information Source for Arbitrator Selection

Bates Group today introduced Arbitrator Evaluator™ — an essential information source and analytical tool to streamline and enhance the time-consuming process of identifying, ranking, and selecting […]
September 26, 2017

Amendments to Form ADV Part 1A

On October 1, 2017, regulatory changes go into effect for investment advisers. The amended Form ADV will require investment advisers to expand the information they report […]