Tag: Enforcement

Return of the monitorship: SEC and DOJ settle US$84M FCPA claims and impose monitorship on medical waste services company

In October 2021, Deputy Attorney General Lisa Monaco announced revised US Department of Justice (DOJ) guidance on corporate monitorships, signaling a sharp change in the declining trend of the tool over the past few years. (NRF has previously examined the DOJ’s policy changes.) Recently, the DOJ and the US Securities and Exchange Commission (SEC) announced … Continue Reading

Businesses only have one year left to register unresolved historical banking complaints with the Business Banking Resolution Service

On 24 February 2022, the Business Banking Resolution Service (BBRS) issued a press release urging businesses with outstanding historical banking disputes to see if they can apply for support using an online tool as the deadline for historical complaint applications is just one year away, closing on 14 February 2023. Professional services businesses are also … Continue Reading

Tribunal strikes out application by third party in relation to Supervisory Notice

The Tribunal has held that third party rights do not arise in the context of Supervisory Notices, nor do the relevant provisions allow third parties to refer Supervisory Notices to the Tribunal, even where they are identified. Although Parliament has specifically provided for this right in the context of Warning and Decision Notices, it has … Continue Reading

Incriminating IMs lead to Singapore precious metals trader settling, pleading guilty to charges of spoofing, manipulation and wire fraud

A former futures trader recently agreed to a settlement order from the U.S. Commodity Futures Trading Commission (“CFTC”) imposing a permanent trading ban for spoofing and manipulation, and pled guilty to criminal charges of manipulation and wire fraud, for trading done in the precious metals market. David Liew was a trader on a major financial … Continue Reading

CFTC amends regulations to prohibit restrictions on employee communication concerning potential Commodity Exchange Act violations

On May 22, 2017, the Commodity Futures Trading Commission (“CFTC”) amended Part 165 of its regulations, which govern whistleblower incentives and protections. In addition to strengthening existing anti-retaliation protections for whistleblowers, the amendments also prohibit employers from restricting employees from reporting potential violations of the Commodity Exchange Act directly to the CFTC. This prohibition extends … Continue Reading

CFTC and futures exchange enforcement actions: A year in review (2015)

Market participants must be mindful of the robust enforcement environment at the CFTC and U.S. futures exchanges.  In 2015, the CFTC brought numerous enforcement actions and continued to impose aggressive civil monetary penalties on market participants, including energy and agricultural companies.  Significantly, the CFTC also started to pivot from implementing to enforcing its regulations promulgated … Continue Reading

SEC Provides Enforcement Overview for 2015 Fiscal Year

The SEC provided an overview of significant actions that were brought by the SEC’s Division of Enforcement in 2015.  The SEC filed 807 enforcement actions in the 2015 fiscal year and obtained orders totaling approximately $4.2 billion in disgorgement and penalties, slightly higher than the 755 enforcement actions and orders totaling $4.16 billion in disgorgement … Continue Reading

CFTC Brings First Action Against a SEF – For Facilitating Non-Competitive Bitcoin Swaps

On September 24, 2015 the CFTC issued an Order settling an enforcement action against TeraExchange, a provisionally registered swap execution facility (SEF). According to the Order, TeraExchange failed to enforce its rules prohibiting wash trading and pre-arranged trading. In fact, the Order found, TeraExchange affirmatively arranged for two market participants to enter into the SEF’s … Continue Reading

CFTC issues new position limits proposal to make it easier for majority-owned affiliates (greater than 50% to 100% ownership) to disaggregate futures and swaps positions

On September 22, 2015, the CFTC issued a “supplemental” proposed rulemaking (the “2015 Proposal”) to revise its long-pending proposal on aggregation for position limit purposes published in November 2013 (the “2013 Proposal”). The 2015 Proposal, if finalized, would provide companies with over 50% ownership or equity interest in affiliated entities with an easier mechanism to … Continue Reading

FINRA’s National Adjudicatory Council revises Sanction Guidelines for misrepresentations and suitability rule violations

FINRA’s National Adjudicatory Council (“NAC”) has revised its Sanction Guidelines that outline particular securities industry rule violations and the range of disciplinary sanctions that may result from such rule violations.  The revised Sanction Guidelines involve violations of misrepresentation and suitability rules and take effect immediately.  These revisions are part of the NAC’s periodic review of … Continue Reading

Enforceable undertakings – ASIC to make experts’ findings available to the public

On 19 February 2015, we reported on ASIC enforcement actions in the second half of 2014. ASIC has since updated its regulatory guidance on enforceable undertakings (RG 100).  The updated guidance will apply to enforceable undertakings accepted by ASIC from 9 March 2015. The changes made to the guidance centre primarily around the engagement of experts … Continue Reading

ASIC enforcement actions Q4 2014: is an increase in penalties on the cards?

ASIC has recently released its quarterly enforcement report detailing enforcement outcomes between 1 July 2014 and 31 December 2014.  The report addresses the range of criminal and civil action taken by the regulator, and highlights action taken against companies and directors resulting in criminal charges which were most significant during the period. In addition, significant … Continue Reading

CME Rule 575 prohibiting certain disruptive trade practices effective today

CME Rule 575, codifying types of disruptive order entry and trading practices is effective today. Our September 8, 2014 blog post discusses the new rule and a related CME advisory. Last week, CME’s Chief Regulatory Officer, Global Head of Enforcement and Global Head of Investigations provided an outreach webinar on the new rule hosted by the … Continue Reading

CFTC goes after outside attorney for aiding and abetting violations of Dodd-Frank

In the most recent exercise of the Commodity Futures Trading Commission’s expanded enforcement authority under the Dodd-Frank Act, the CFTC filed a Complaint against attorney Jay Bruce Grossman claiming that Grossman aided the fraud of Hunter Wise Commodities and various dealers and intermediaries. The CFTC further asserts that Grossman aided and abetted his clients in entering … Continue Reading

SEC announces whistleblower award to audit and compliance professional who reported company’s wrongdoing

On August 29, 2014, the SEC announced a whistleblower award of more than $300,000 to a company employee who performed audit and compliance functions and reported wrongdoing to the SEC after the individual’s employer failed to take action after the misconduct was reported internally by the employee. The employee disclosed the information to the SEC … Continue Reading

SEC settles enforcement action against hedge fund for retaliation against whistleblower

On June 16, 2014, the Securities and Exchange Commission (the “SEC”) announced a $2.2 million settlement against an investment adviser that engaged in prohibited principal transactions and then retaliated against the employee who reported this misconduct to the SEC.  This was the first time the SEC had filed a case under its new authority to … Continue Reading