Regulation

Broker-dealers who are sponsoring their customers' direct access to securities markets need to face a "higher level of accountability with respect to the algorithms they use,'' according to their chief regulator.

Four former Financial Industry Regulatory Authority officials who left the agency in 2008 each received between $2.74 million and $4.43 million in reportable compensation and benefits that year, according to the latest form the nonprofit self-regulator filed with the Internal Revenue Service.

When the bill was signed into law by President Obama in July, an era marked by a flood of federal investigations sparked by bounty-hunting employees looking to cash in on rewards that, in some cases, could turn them into instant millionaires began.

The Internal Revenue Service has issued final regulations under a law change that will require reporting of basis and other information by stock brokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years, making it easier for investors to report their gains and losses next year on their tax returns.

The American Institute of CPAs has told the Securities and Exchange Commission that accountants need an adequate transition period if the SEC decides next year to incorporate International Financial Reporting Standards into the U.S. financial reporting system.

Angelo Mozilo, the former chief executive of mortgage lender Countrywide Financial, has agreed to pay $22.5 million to the Securities and Exchange Commission, the largest-ever financial penalty for a public company senior executive.

Aim is to help investors readily compare fees.

France, Germany and others, meanwhile, are uncomfortable with the powers of the EU’s new securities regulator.

Under existing rules, a bank with a 4 or 5 Camels rating cannot make such payments to parties terminating their affiliation with the institution.

Nanex challenges SEC report that points to Waddell & Reed.