Compliance

For vendors in the data security realm serving asset managers, banks and other financial institutions, the Morgan Stanley data breach incident serves as a reminder of the greater roles they now have.

FINRA banned a rep for allegedly forging a customer's signature on bank withdrawal slips, a move that allowed the customer's sister to steal $3,900 from the customer's account. Two others were suspended for relatively minor infractions.

Defense in the cyberworld is difficult. The invisible duplication of information is intrinsic to computerized systems. Adding to this complexity, we now use global-spanning IT systems with numerous known and unknown dependencies.

When does it make sense to buy your list of clients? Attorney Alan Foxman explains.

Norm Champ, the SEC’s director of investment management, will resign after five years at the agency, the SEC said.

The top regulator of mutual funds, private equity and hedge funds at the U.S. Securities and Exchange Commission will step down later this month.

BlackRock’s chief executive officer has warned the retreat of banks as counterparties in credit will create severe volatility. Regulators are preparing new rules for mutual funds to ensure that a sudden stampede out of funds won’t result in a downward price spiral that threatens the financial system.

The president used his annual speech before Congress to defend Dodd-Frank while pleading that lawmakers pass cybersecurity legislation.

Federal authorities are considering expanded regulation of large mutual fund companies, a move that opponents say threatens to bleed value out of the fund industry and aims to solve a problem that doesn't exist.

A group of nine fund managers is said to be planning to start a dark pool dedicated to large stock trades later this year. The new market -- named Luminex -- will admit asset managers who bet on prices to increase, sources said.

Here's what the brokerage industry's disinformation-mongers might be telling senior brokerage executives.

As additional regulations are anticipated this year, the industry is beginning to aggressively seek to defragment the technology, data and services most critical to improving business performance and reducing operational and reputational risk.

In laying out exam priorities for 2015, regulators cite mounting complexity of products and services in the retirement space.

Judge has yet to rule on board's request for summary judgment; if granted, the parties would avert trial.

Anastasios "Tommy" Belesis, the former head of John Thomas Financial, was barred from the brokerage industry for life by FINRA for trading ahead of clients' orders.

The IRA contribution limit in the U.S. is $5,500; Canada's limit is $20,000. If an investor is willing to put away that much money, why not allow it, one write asks.

Advisors in the Midwest and on the West Coast noticed information from their accounts on Pastebin, a website notoriously used for posting hacked or leaked information.

Years after being barred from the industry by FINRA, a former LPL broker is heading to prison for embezzling more than $250,000 from mostly elderly clients.

Many firms manage the distribution of summary prospectuses and upkeep of the related websites in-house via a painstaking manual process. However, these firms may not be aware of how much this effort is costing them and whether they are truly complying with Rule 498 and delivering a positive investor experience.

The breach illustrates the danger posed when just one employee has unauthorized or unsecured access to sensitive information, as well as the ongoing threat to financial institutions from insider theft.