Regulation & Compliance

Financial Services Institute CEO Dale Brown acknowledged the organization wasn’t as familiar with potential DOL Head Rep. Lori Chavez-DeRamer as it was with SEC Chair Nominee Paul Atkins.

In a letter to Acting SEC Chair Mark Uyeda, the Chicago-based firm called the recent complaint a retaliation and cited “rushed efforts” by SEC staff to push through the filing in the final days of Gary Gensler’s tenure.

The new task force will be led by Commissioner Peirce and was unveiled by an SEC release criticizing the commission’s prior approach to crypto enforcement.

According to the commission, the firm attempted to cover up “allegedly fraudulent conduct” by several reps who solicited clients in speculative securities despite the broker/dealer not signing off.

The independent broker/dealer has agreed to pay a $18 million penalty and improve its procedures.

The regulator found firm employees were using unapproved texting apps for business and failing to archive the communications. It follows earlier settlements made with large firms like Bank of America, Morgan Stanley, LPL and Raymond James.

Two Robinhood entities “failed to observe a broad array of significant regulatory requirements,” according to the SEC.