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Government Enforcement Exposed - "The GEE"
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31 Jan 2014 Securities Regulators’ Increasing Use of Real-Time Monitoring Systems – Is Skynet Next?

By Anne DePrez |   While the Department of Health and Human Services may have become jaded in the past few months about computer programs, the Securities Exchange Commission (SEC) has not been scared off from computers. It is instead dramatically expanding its use of computer-based tools to assist in their enforcement activities.   First it was the Accounting Quality Model (“AQM”), announced at the end of 2012.  AQM (or “Robocop” to some) rummages through the SEC EDGAR XBRL filings of more than 8000 registrants to spot red flags that might indicate questionable accrual, reserving and other accounting practices.  This information will be particularly useful for the newly-formed Financial Reporting and Audit Task force which is focusing on disclosure issues.   Then, earlier this month,…

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14 Jan 2014 FINRA Examiners to Focus on Brokers with Histories of Discipline

By David L. Young |    With the beginning of the new year, the Financial Industry Regulatory Authority (FINRA) has laid out its “examination priorities” that give an overview of the issues that it will review in 2014. Two of those issues relate to tracking brokers who have either come from firms with disciplinary problems or have had disciplinary problems themselves.   FINRA, which issued the overview on Jan. 2, will review the process that firms use to research problem brokers before hiring and will seek to identify whether the firms are utilizing additional controls to supervise such brokers to avoid future misconduct.  And although a broker leaving a firm that may have been expelled from the securities industry may not be barred, FINRA has concerns…

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