Author: Stephen Nellis
The Financial Industry Regulatory Authority (FINRA) has levied a fine of £1.6 million against Morgan Stanley Smith Barney LLC. The penalty arises from the firm’s recurrent failures to promptly close out unsuccessful inter-dealer municipal securities transactions and to take timely actions to acquire physical possession or control of municipal security positions that exceeded 30 calendar days, coupled with associated supervisory oversights. This represents the inaugural disciplinary action by FINRA where a firm has been penalised for breaching the close-out stipulations outlined in the Municipal Securities Rulemaking Board (MSRB) Rule, along with linked supervisory deficiencies. Notably, FINRA had previously penalised Morgan…
The Securities and Exchange Commission (SEC) has taken action against VanEck Associates Corporation for withholding information regarding a social media influencer’s involvement in the launch of its new exchange-traded fund (ETF). In March 2021, Van Eck unveiled the VanEck Social Sentiment ETF (NYSE:BUZZ), designed to monitor an index based on positive sentiments from social media and other data sources. However, an inquiry by the regulator revealed that VanEck had neglected to reveal crucial details concerning the planned participation of a prominent social media influencer and the fee structure linked to the ETF’s launch. Andrew Dean, the Co-Chief of the Enforcement…
In a recent market watch report, the Financial Conduct Authority (FCA) highlighted a concerning trend – organised crime groups (OCGs) infiltrating equity markets through suspicious trading activities. The report underscores the importance for firms to remain vigilant and take proactive measures to mitigate the risks associated with facilitating such illicit activities. The report reveals that suspicious trading activities by OCG members, particularly in products linked to UK and internationally listed equities, constitute a significant portion of observed suspicious trading volumes in equity markets. Defined by the Serious Crime Act 2015, OCGs are groups comprising three or more individuals collaborating to…
The Securities and Exchange Commission (SEC) has brought charges against VanEck Associates Corporation for withholding information about a social media influencer’s involvement in the launch of its latest exchange-traded fund (ETF). In March 2021, VanEck unveiled the VanEck Social Sentiment ETF (NYSE:BUZZ), designed to monitor an index based on positive sentiments expressed on social media and other data sources. However, a probe by the regulator revealed that VanEck had neglected to disclose vital details concerning a prominent social media influencer’s intended participation and the fee structure linked to the ETF’s launch. Andrew Dean, the Co-Chief of the Enforcement Division’s Asset…
The financial technology company FIS and Banked, a provider of open banking solutions, have forged a partnership to enhance the direct transfer of funds across banks. This collaboration aims to exploit the potential of open banking, APIs, and real-time payment services. As per the press release, businesses can facilitate direct payments between accounts, sidestepping the need for traditional processes such as identifying card details or account numbers, by utilising instant payment channels. This process allows users to capitalise on the flexibility of open banking. With open banking gaining ground in the United States, FIS seeks to incorporate the new feature…
Ripple has declared its intent to acquire Standard Custody & Trust Company, a regulated platform specialising in digital assets. By assimilating Standard Custody’s limited purpose trust charter and money transmitter licenses into its arsenal, Ripple aims to bolster its collection of regulatory licenses. The surge in institutional adoption of cryptocurrencies and blockchain technology can be attributed to the emergence of mature and highly secure products in the market. Ripple, along with its subsidiaries, holds an array of licenses, including a New York BitLicense, nearly 40 money transmitter licenses across the US, a Major Payment Institution License from the Monetary Authority…
Jessica Beckstead has embarked on a new professional journey at OANDA where she is now assuming the role of Head of FX Data Services, alongside her current position as the CEO of OANDA US. With a career spanning over two decades in the financial services industry, Beckstead brings a wealth of knowledge and leadership to her new role. Before joining OANDA, she spent 18 years at FXCM, holding various significant positions such as Managing Director & Global Head, CEO of FXCM Australia, and Managing Director of Emerging Markets. Speaking about her expanded responsibilities, Beckstead conveyed her excitement about leading OANDA’s…
In a regulatory ruling, the Cyprus Securities and Exchange Commission (CySEC) has declared the withdrawal of Cyprus Investment Firm (CIF) authorisation from Leverate Financial Services Ltd. The ruling, enacted during CySEC’s session on December 4, 2023, ensued the company’s explicit renunciation of its authorisation. The recent decision by the company to voluntarily renounce its authorisation has spurred CySEC to take action in accordance with pertinent provisions of the Investment Services and Activities and Regulated Markets Law. The revocation of CIF authorisation effectively prohibits Leverate Financial Services Ltd from sustaining its operations within the regulatory framework supervised by CySEC. The declaration…
New York’s Attorney General, Letitia James, has extended her legal pursuit against Digital Currency Group (DCG), its CEO Barry Silbert, and Genesis Global Capital, unveiling an additional £2 billion in fraud, thus elevating the total losses incurred by over 230,000 investors to £3 billion. According to James, the cryptocurrency industry continues to grapple with significant fraud, as highlighted in the initial lawsuit filed against Gemini, Genesis, and DCG. This lawsuit shed light on misleading representations concerning the Gemini Earn investment programme, culminating in over £1 billion in investor losses. James remarked, “The fraud and deceit were so expansive that many…
A mere seven days prior to Valentine’s Day, the Commodity Futures Trading Commission’s Office of Customer Education and Outreach (OCEO) took a proactive stance, releasing a cautionary notice aimed at dating and messaging apps as well as social media users. The advisory sounded the alarm on the pervasive threat of romance scams entwined with cryptocurrencies and foreign exchanges, colloquially known as “sha zhu pan” or pig butchering. In their regulatory advisory unveiled on Wednesday, the OCEO delineated the modus operandi of fraudsters leveraging dating apps and social media platforms to perpetrate romance scams. These scams are characterized by their intricate…