Chief compliance officers (CCOs) at private fund management firms could be saddled with the extra title of anti-money laundering compliance officer and a lot more work if a proposed AML rule from the FinCEN unit of the US Treasury takes effect. FinCEN, short for Financial Crimes Enforcement Network, has resurrected its longstanding desire for many […]
SS&C: $890M At Stake in Legal Tussle With BNY Mellon
A longstanding dispute over a market data contract with SS&C Technologies, which could cost BNY Mellon up to a whopping US$890 million in damages, highlights the danger of intentionally violating or even misinterpreting a critical element of such an agreement– distribution rights. At issue is whether BNY Mellon had the right to distribute market data […]
NY’s New Cyber Law Shines Stronger Light on C-Level
C-level executives at most financial firms operating in New York will have one more reason besides the fear of a data breach to change their corporate governance for cybersecurity this year– New York State’s amended regulation. Electronic securities lending and borrowing platform EquiLend’s recent announcement it was the target of a ransomware attack followed New […]
US Treasuries Central Clearing: Fund Managers’ Juggling Act in 2024
US fund managers will be spending the new year preparing for the operational and legal challenges arising from central clearing of most secondary trades in Treasury cash and repurchase agreements now that the Securities and Exchange Commission has approved the phased move. The mandated switch to central clearing for many transactions in US Treasuries will […]
SEC’s Private Fund Adviser Rules: Tackling the Dos, Don’ts, and Maybes
The US Securities and Exchange Commission’s new rules for private fund advisers are meant to increase transparency for investors, but they will also increase operational pain and cost for compliance managers even more, fund executives tell FinOps Report. Although the SEC has eliminated some of the more controversial provisions for the estimated US$22.6 trillion dollar […]
SEC Tells Mutual Fund Industry: Lost Accountholders Matter
Compliance directors at US mutual fund transfer agents and US mutual funds will have to follow the US Securities and Exchange Commission’s rules to a T and they will have more administrative work on their hands to inform investors about the perils of escheatment of unclaimed or “lost” accounts, based on the US Securities and […]
SEC’s Take on Predictive Data Analytics: A Failed Prediction?
Mindboggling isn’t a word often used when discussing proposals issued by the US Securities and Exchange Commission, but the latest one for registered investment advisers and broker-dealers about addressing conflicts of interest when using predictive data analytics (PDA) and PDA-like technology appears to be a notable exception. If adopted as drafted, the SEC’s requirement would […]
EquiLend, Prime Brokers Settle Sec Lending Antitrust Lawsuit
E-trading platform for securities lending EquLend has agreed to pay pension funds and others part of a whopping $500 million and to revamp its governance policy to settle an antitrust class-action lawsuit which includes prime brokers Goldman Sachs, Morgan Stanley, JP Morgan Chase and UBS. The plaintiffs in the case led by the Iowa Public […]
SEC’s Proposed New Custody Rule Fails Industry Litmus Test
Fund management and custodian operations and legal experts are warning the US Securities and Exchange Commission that its proposed changes to its custody rule, which requires registered investment advisers to select a qualified custodian to safeguard their assets, are far too impractical and costly. “The new proposed rule is contrary to existing business practice and […]
T+1: Fund Managers Tackle Pain Points
Operations directors at fund management firms are starting to review post-trade communications, securities lending, liquidity management, and corporate actions as the critical processes keeping them awake at night when preparing for a one-day settlement cycle (T+1) for US securities in May 2024. Analyzing internal workflow and interactions with broker-dealers and custodian banks is essential to […]