FINRA’s disciplinary actions in 2017: increased restitution ordered with minimal changes in number of cases

2018 ◽  
Vol 19 (2) ◽  
pp. 19-23
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Disciplinary Actions ◽  
Financial Industry ◽  
Electronic Communications ◽  
Content Type ◽  
The Past ◽  
Expert Analysis ◽  
Research Analysts ◽  
Practical Implications

Purpose The purpose of this paper is to analyze the Financial Industry Regulatory Authority’s (FINRA) 2017 disciplinary actions, the issues that resulted in the most significant fines and restitution and the emerging enforcement trends from 2017 and beyond. Design/methodology/approach The approach of this paper discusses the disciplinary actions in 2017 and prior years, details the top 2017 enforcement issues measured by total fines assessed, including anti-money laundering, trade reporting, electronic communications, books and records, research analysts and research reports, and explains current enforcement trends, including restitution, suitability cases and technological issues. Findings In 2017, restitution more than doubled from the prior year, resulting in the fourth highest total sanctions (fines combined with restitution and disgorgement) assessed by FINRA over the past 10 years. Practical implications Firms and their representatives should heed the trends in both the substantial restitution FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value This paper provides expert analysis and guidance from experienced securities enforcement lawyers.

FINRA’s disciplinary actions in 2018:Increased fines ordered with significant drop in number of cases

2019 ◽  
Vol 20 (3) ◽  
pp. 1-5
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Regulatory Authority ◽  
Design Methodology ◽  
Short Selling ◽  
Disciplinary Actions ◽  
Financial Industry ◽  
Significant Drop ◽  
Content Type ◽  
Expert Analysis ◽  
Practical Implications

Purpose To analyze FINRA’s 2018 disciplinary actions, the issues that resulted in the most significant fines and restitution, and the emerging enforcement trends from 2018 and beyond. Design/methodology/approach Discusses the disciplinary actions in 2018 and prior years; details the top 2018 enforcement issues measured by total fines assessed, including anti-money laundering, suitability, variable annuity, and short selling; and explains current enforcement trends, including higher fines per case, more cases with larger sanctions in the second half of the year, share class issues, and inadequate resources. Findings In 2018, the Financial Industry Regulatory Authority (FINRA) ordered fewer fines than in 2017, and the number of cases and amount of restitution were down. Practical implications Firms and their representatives should heed the trends in both the substantial fines per case that FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value Expert analysis and guidance from experienced securities enforcement lawyers.

2016 FINRA analysis: a record-breaking year for fines

2017 ◽  
Vol 18 (2) ◽  
pp. 1-8
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Disciplinary Actions ◽  
Variable Annuities ◽  
Content Type ◽  
Compliance Officers ◽  
Expert Analysis ◽  
Key Issues ◽  
To Receive ◽  
Practical Implications

Purpose To analyze FINRA’s 2016 sanctions and cases, the issues that resulted in the most significant fines, emerging enforcement trends, and make predictions about key issues for FINRA for 2017 and beyond. Design/methodology/approach Discusses the sanctions and disciplinary actions in 2016 and prior years; details the top 2016 enforcement issues measured by total fines assessed, including anti-money laundering, variable annuities, trade reporting, books and records, and unregistered securities; explains current enforcement trends, including fines of $1 million or more, sanctions against compliance officers, and suitability cases; and analyzes three enforcement topics that will likely continue to receive heightened attention from FINRA in 2017 and beyond: restitution, cybersecurity, and senior investors. Findings The fines ordered by FINRA in 2016 reached an all-time high while the amount of restitution ordered and the number of disciplinary actions remained on par with prior years. Practical implications Firms and their representatives should heed the trends in both the substantial fines FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value Expert analysis and guidance from experienced securities enforcement lawyers.

Assessing effectiveness and compliance of banking boards

2010 ◽  
Vol 18 (4) ◽  
pp. 356-369 ◽  
Author(s):  
Alessandro Carretta ◽  
Vincenzo Farina ◽  
Paola Schwizer
Keyword(s):  
Design Methodology ◽  
Financial Industry ◽  
Content Type ◽  
The Past ◽  
Industry Standards ◽  
Individual Contributions ◽  
Standards And Regulations ◽  
Practical Implications

PurposeThis paper aims to develop a model to assess the effectiveness and compliance of bank boards, taking into account their unique characteristics, financial industry standards and regulations.Design/methodology/approachThe literature on the roles and effectiveness of boards and directors in the financial industry is reviewed.FindingsThe main finding in the literature suggests that evaluating the effectiveness of a board must include characteristics of the entire board as well as individual contributions of directors.Practical implicationsBanking boards, more than in the past, must proactively evaluate their effectiveness and compliance with existing rules.Originality/valueThe paper proposes a model for assessing the effectiveness and compliance of boards and directors of banking organizations, considering their characteristics, financial industry standards and regulations.

Recent civil and criminal enforcement action involving high frequency trading

2015 ◽  
Vol 16 (1) ◽  
pp. 5-12 ◽  
Author(s):  
Matthew Rossi ◽  
Greg Deis ◽  
Jerome Roche ◽  
Kathleen Przywara
Keyword(s):  
High Frequency ◽  
Design Methodology ◽  
High Frequency Trading ◽  
Content Type ◽  
Enforcement Action ◽  
The Past ◽  
Trading Patterns ◽  
Federal Prosecutor ◽  
Enforcement Activity ◽  
Practical Implications

Purpose – To alert high frequency trading firms to the increased regulation and prosecution of manipulative trading practices during 2014 and early 2015. Design/methodology/approach – Reviews four significant proceedings against high frequency trading firms (and/or individuals employed by such firms) and other developments from the relevant government agencies as a possible preview of the enforcement and prosecution of high frequency trading practices in 2015. Provides advice to high frequency trading firms on how to decrease the risk of regulatory or criminal actions against them in this changing environment. Findings – Although the focus on high frequency trading has only recently begun to intensify, firms should be aware of the increased enforcement activity of the past year. These actions, both regulatory and criminal, have already resulted in large penalties and have helped initiate a strengthening of rules and regulations regarding manipulative trading practices, of which firms need to be aware and stay current. Practical implications – High frequency trading firms should be aware of the recent regulatory and criminal actions in order to better evaluate their own practices and controls, to ensure that their trading patterns do not resemble manipulative practices, and to avoid similar actions. Originality/value – Practical guidance from experienced litigators and securities regulatory lawyers, including a former SEC Assistant Chief Litigation Counsel and a former federal prosecutor, that consolidates and describes several recent actions and developments in one piece.

The changed paradigm of business progress: a moral step forward for humanity

2018 ◽  
Vol 26 (3) ◽  
pp. 181-193
Author(s):  
Joan Marques
Keyword(s):  
Design Methodology ◽  
Management Practices ◽  
Leadership Skills ◽  
First Century ◽  
Competitive Environment ◽  
Business Leadership ◽  
Content Type ◽  
The Past ◽  
Past Experiences ◽  
Practical Implications

Purpose Through an overview of the perceptional evolution of progress over the past two centuries, this paper aims to review a changed, yet constructive paradigm that has emerged in business leadership. Design/methodology/approach The paper is a general review-based deliberation presenting standards of the twentieth century, the need for a shift in paradigms and the shift as it unfolds in the twenty-first century. Findings Focusing on optimal stakeholder inclusion, yet not disregarding the concept of progress in a competitive environment, this paper presents a set of interrelated leadership skills and characteristics, including a discussion about their applicability and ways to develop them. Research limitations/implications While globally applicable, the views in this paper are primarily based on the American performance environment. Practical implications Management practices would not have evolved to today’s level if we did not have the past experiences to learn from. The deliberations and insights shared in this article should be seen as a way of evaluating the path that led us to our current, multi-tiered leadership paradigm. Social implications The model presented in this article should be seen as a useful, yet incomplete set of skills and characteristics to be considered by today’s and future leaders to ensure greater stakeholder inclusion. Originality/value Within the framework of focusing on the management horizon, this paper places the driving motives of two centuries that influenced our current society alongside each other and contemplates on the necessary shifts needed to move forward.

scholarly journals Operating without operations: how is technology changing the role of the firm?

2018 ◽  
Vol 29 (5) ◽  
pp. 809-833 ◽  
Author(s):  
Christoph Breidbach ◽  
Sunmee Choi ◽  
Benjamin Ellway ◽  
Byron W. Keating ◽  
Katerina Kormusheva ◽  
...  
Keyword(s):  
Operations Research ◽  
Design Methodology ◽  
Service Operations ◽  
Science Literature ◽  
Content Type ◽  
The Past ◽  
Technological Advances ◽  
The Future ◽  
Practical Implications

Purpose The purpose of this paper is to analyze the history and future of service operations, with the goal to identify key theoretical and technological advances, as well as fundamental themes that can help to imagine the future of service operations in 2050. Design/methodology/approach A review of the service operations literature was undertaken to inform a discussion regarding the role that technology will play in the future of service operations. Findings The future of service operations is framed in terms of three key themes – complexity, orchestration, and elasticity. The paper makes three contributions to the service science literature by: reviewing key themes underpinning extant service operations research to frame future trajectories of service operations research; elaborating a vision of service operations in 2050 based on history and technology; and outlining a research agenda for future service operations. Practical implications The case of service automation is used to provide an illustration of how the three themes converge to define future service operations, and in particular, to show how technology is recasting the role of the firm. Originality/value Service operations in the next 30 years will be very different from what it was in the past 30 years. This paper differs from other review papers by identifying three key themes that will characterize and instill new insights into the future of service operations research.

Money laundering in a CBDC world: a game of cats and mice

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Dupuis ◽  
Kimberly Gleason ◽  
Zhijie Wang
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Economic Activity ◽  
Design Methodology ◽  
Central Banks ◽  
Content Type ◽  
Digital Currency ◽  
Individual Privacy ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this study is to describe the present taxonomy of money, summarize potential central bank digital currency (CBDC) regimes that central banks worldwide could adopt and explore the implications of the introduction of each of these CDBC regimes for money laundering through the lens of the regulatory dialectic theory. Design/methodology/approach The methodology used in the analysis of significant recent events regarding the progress of central banks in establishing a CBDC and the implications for money laundering under a CBDC regime. This paper also reviews the literature regarding the Regulatory Dialectic to highlight potential innovative responses of money launderers to circumvent the controls generated through the implementation of a CBDC. Findings This study examines the impact of Kane’s regulatory dialectic paradigm on the feasibility of money laundering under a CBDC regime and identifies potential avenues that would be available for those seeking to launder money, based on the form a CBDC would take. Research limitations/implications This paper is unable as of yet to empirically evaluate anti-money laundering (AML) tactics under a CBDC regime as it has not yet been fully implemented. Practical implications Many central banks worldwide are evaluating the structure of and introduction of a CBDC. There are a number of forms that a CBDC could take, each of which has implications for individual privacy and for entities involved in AML efforts within financial institutions and the regulatory community. The paper has implications for AML experts who are considering how AML procedures would change under a CBDC regime. Social implications The regulatory dialectic predicts that regulatory response reactive, rather than proactive when it comes to socially undesirable phenomena. As central banks and governments seek to divert economic activity away from the laundering of the proceeds of illicit activity, there are tradeoffs in terms of a loss of privacy. The regulatory dialectic predicts a corresponding innovative response of those who wish to undermine the controls generated through the establishment of a CBDC. Originality/value To the authors’ knowledge, this is the first paper to explore the impact of a potential CBDC on money laundering and the potential innovative circumventions within the paradigm of the Regulatory Dialectic.

Characteristics of a co-flowing jet with varying lip thickness and constant bypass ratio

2019 ◽  
Vol 91 (9) ◽  
pp. 1205-1213 ◽  
Author(s):  
Naren Shankar R. ◽  
Kevin Bennett S.
Keyword(s):  
Design Methodology ◽  
Critical Value ◽  
Commercial Aircraft ◽  
Critical Limit ◽  
Potential Core ◽  
Content Type ◽  
Free Jet ◽  
The Past ◽  
Bypass Ratio ◽  
Practical Implications

Purpose Subsonic commercial aircraft operate with turbo-fan engines that operate with moderate bypass ratio (BR) co-flowing jets (CFJ). This study aims to analyse CFJ with constant BR 6.3 and varying primary nozzle lip thickness (LT) to find a critical LT in CFJ below which mixing enhances and beyond which mixing inhibits. Design/methodology/approach CFJ were characterized with a constant BR of 6.3 and varying lip thicknesses. A single free jet with a diameter equal to that of a primary nozzle of the co-flowing jet was also studied for comparison. Findings The results show that within a critical limit, the mixing enhanced with an increase in LT. This was signified by a reduction in potential core length (PCL). Beyond this limit, mixing inhibited leading to the elongation of PCL. This limit was controlled by parameters such as LT and magnitude of BR. Practical implications The BR value of CFJ in the present study was 6.3. This lies under the moderate BR value at which subsonic commercial turbofan operates. Hence, it becomes impervious to study its mixing behavior. Originality/value This is the first effort to find the critical value of LT for a constant BR for compressible co-flow jets. The CFJ with moderate BR and varying LT has not been studied in the past. The present study focuses on finding a critical LT below which mixing enhances and above which mixing inhibits.

The conceptual heritage of public relations: using public memory to explore constraints and liberation

2019 ◽  
Vol 23 (4) ◽  
pp. 375-392
Author(s):  
W. Timothy Coombs ◽  
Sherry J. Holladay
Keyword(s):  
Public Relations ◽  
Design Methodology ◽  
Public Memory ◽  
Content Type ◽  
The Public ◽  
The Past ◽  
Counter Narratives ◽  
Dominant Narratives ◽  
Practical Implications ◽  
Development And Evolution

Purpose The purpose of this paper is to describe three foundational concepts that contribute to conceptual heritage of the field of public relations (publics, organizations and relationships). Conceptual heritage is positioned as a type of shared public memory, a dominant narrative, that encourages adherence to the past whilst recognizing that counter-narratives can pose useful alternatives to foundational concepts. Design/methodology/approach The approach is a selective literature review that describes three dominant concept categories and presents more recently developed alternative concepts and approaches to illustrate how public memory is subjective and evolving. Findings The concepts of publics, organizations and relationships have grounded the dominant narrative and development of the field of public relations. Though these concepts continue to be influential as researchers rely upon and expand upon their legacies, counter-narratives can spur the innovation of ideas, measurement and practice. Research limitations/implications The paper focuses on only three major foundational concepts selected by the authors. The importance of these concepts as well as additional examples of the field’s conceptual heritage and evolution could be identified by different authors. Practical implications The analysis demonstrates how the public memory contributes to the development and evolution of the field of public relations. Counter-narratives can offer appealing, subjectively constructed challenges to dominant narratives. Originality/value This paper describes and critiques public relations’ conceptual heritage and argues that conceptually and methodologically-based counter-narratives have contributed to its evolution.

Virtual currency in sanctioned jurisdictions: stepping outside of SWIFT

2019 ◽  
Vol 20 (2) ◽  
pp. 39-44 ◽  
Author(s):  
Katherine Kirkpatrick ◽  
Christine Savage ◽  
Russell Johnston ◽  
Matthew Hanson
Keyword(s):  
Best Practices ◽  
Design Methodology ◽  
Virtual Currency ◽  
Content Type ◽  
The Us ◽  
Expert Analysis ◽  
Practical Implications ◽  
Foreign Assets

Purpose To understand and analyze sanctions evasion and enforcement via virtual currencies. Design/methodology/approach Discusses various jurisdictions’ attempts to further the use of virtual currency to facilitate and maximize access to international funds; analyzes the aspects that make virtual currency uniquely suited to evade sanctions; suggests best practices for industry participants to be sure to account for the differences in crypto asset structure and related risks. Findings The US Treasury Department’s Office of Foreign Assets Control (OFAC) has explicitly stated that despite virtual currency’s anonymity, industry participants are still responsible for policing and enforcing client compliance. Although sanctioned jurisdictions are thinking creatively about ways around SWIFT, the use of virtual currency to skirt sanctions presents certain challenges. Practical implications Virtual currency industry participants should understand OFAC’s specific guidance regarding compliance obligations in the cryptocurrency space, and should implement best practices and conservative measures to avoid unknowingly running afoul of sanctions laws. Originality/value Expert analysis and guidance from experienced investigations and sanctions lawyers.

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