Investment Adviser Sanctioned for Inadequate Trading Away Disclosure

On July 14, 2016, the Securities and Exchange Commission (“SEC”) announced an enforcement action against RiverFront Investment Group, LLC, a registered investment adviser serving as sub-adviser to clients in wrap fee programs established by various sponsors (“RiverFront”). The enforcement action resulted from RiverFront’s materially inadequate disclosure about changes in its trading practices and attendant transaction […]

Six 401(k) Investment Options

Investors can now allocate their retirement savings, thanks to the 401(k) plan. Here are six commonly used investment options, as enumerated by a recent analysis of around 25 million participants by the Employee Benefit Research Institute. 1. Equity Funds: As the most popular form pf investment, the analysis report says that almost 43% of the […]

Parsec Financial recognized by InvestmentNews as #1 RIA in North Carolina for 3rd consecutive year

ASHEVILLE, N.C. – Parsec Financial has been recognized as the #1 Registered Investment Advisor (RIA) in North Carolina in InvestmentNews’ Largest RIA rankings, which published June 2. This is the 3rd consecutive year that Parsec Financial has been the top RIA in North Carolina. The annual listing of leading RIA’s cited Parsec with $1.722 billion assets under management and […]

CFTC Provides Guidance on Clearinghouse Plans for Recovery and Wind-down

The CFTC Division of Clearing and Risk (“DCR”) issued guidance that included a list of questions for clearinghouses to consider when developing recovery and wind-down plans. In a supporting statement, CFTC Chair Timothy Massad emphasized that systemically important derivatives clearing organizations are required to maintain viable recovery and wind-down plans that must be designed “to allow a clearinghouse to […]

Bridging the Week: New Clearing Member Category; Above the Law; MF Global; FX Trading Front Running; Deliveries; EFRPs

CME Group proposed a new clearing membership category to help customers avoid the risk of receiving a pro-rata allocation of losses from their carrying futures commission merchant in the circumstance of the FCM’s insolvency and its inability to satisfy its obligations to all its customers in full. In addition, the Financial Industry Regulatory Authority warned […]

BD Loans Raise Fines, Conflict of Interest Worries

The SEC recently took action that may be felt across the industry when it levied fines on two registered investment advisors this week. Kestra Private Wealth Services was censured for $50,000 for its failure to disclose $1.8 million in loans from its broker-dealer to its clients. According to the SEC, Kestra “did not disclose the […]

Statement Of CFTC Chairman Timothy Massad On CFTC Staff Guidance Regarding Clearinghouse Recovery Plans And Wind-Down Plans

Clearinghouses have taken on an increased importance in the global financial system, and the CFTC is focused on making sure they remain strong and resilient. Today’s staff guidance, which will help clearinghouses improve their Recovery Plans and Wind-down Plans, is a critical part of that effort. CFTC regulations require clearinghouses, or derivatives clearing organizations (DCOs), […]

Petition Pushes CFTC to Clarify Rules on Blockchain ‘Delivery’

US law firm Steptoe & Johnson LLP has filed a petition with the Commodity Futures Trading Commission (CFTC), calling on the agency to provide more clarity regarding the definition of “delivery” in blockchain-based transactions. Signed by Steptoe partner Micah Green and senior policy advisor (and former CFTC commissioner) Michael Dunn, the petition centers around actions the […]

New conflict of interest concerns: SEC fines RIAs for BD loans

In moves with potentially industrywide repercussions, the Securities and Exchange Commission has meted out over $100,000 in fines to two RIAs for failing to disclose nearly $5 million in loans from its broker dealer to clients. Washington Wealth Management, now known as Kestra Private Wealth Services, was fined and censured $50,000 by the SEC for […]

OCIE Gives Advisers a Heads-Up About Its Latest Sweep Examination Initiative

Last week, OCIE published a National Exam Program Risk Alert highlighting the staff’s focus on advisers’ responsibility to act consistently with their clients’ best interests. According to OCIE, its latest sweep examination, the “Share Class Initiative,” will “address the risk that registered advisers may be making certain conflicted investment recommendations to their clients.” Like other […]

CFTC Grants One-Year Extension to DTCC-SWIFT LEI Order

The extension is important as it facilitates more time for the global LEI system to become fully operational. The US Commodity Futures Trading Commission (CFTC) has opted to lengthen an order of a joint DTCC-SWIFT utility, which manages and provides legal entity identifiers (LEIs), which will see the groups’ designation extended another year, according to […]

Industry Participants Generally Applaud Proposed Amendments to CFTC Position Limit Proposal But Criticize Ability to Undo Exchanges’ Determinations

In comment letters filed with the Commodity Futures Trading Commission, futures industry participants generally supported the Commission’s recent proposed changes to its November 2013 proposed position limit rules in order to permit exchanges to approve non-enumerated hedge exemptions, spread exemptions and anticipatory hedge exemptions, as well as to delay exchange-set position limits for swaps. However, industry […]