FINRA February fines summary
FINRA has published its latest Disciplinary summary for February 2023 covering a range of enforcement actions. Amongst those mentioned for violations are Old Slip Capital Management; OFG Financial Services, Inc; Coastal Equities, Inc and Wells Fargo Securities.
Trio of SEC charges
The Securities and Exchange Commission (SEC) has charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.
According to the SEC’s complaint Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions. It goes on to allege that Terraform and Kwon marketed crypto asset securities to investors seeking to earn a profit, repeatedly claiming that the tokens would increase in value.
The SEC has also charged Milan Vinod Pate for spreading more than 100 false rumors about public companies to generate more than $1 million in illicit trading profits. “Out of the five individuals involved in this scheme, we allege that Patel played the central role of using his contacts to repeatedly spread the false rumors via the internet, generating more than $1 million in illicit profits for himself,” said Joseph G. Sansone, Chief of the Enforcement Division’s Market Abuse Unit. “Today’s action seeks to hold Patel accountable for his alleged misconduct and serves as a warning to others who might engage in similar schemes.”
Finally, the SEC has confirmed that The Options Clearing Corporation (OCC) will undertake remedial efforts and pay $17 million in penalties to settle charges that it failed to comply with its SEC-approved Stress Testing and Clearing Fund Methodology rule during certain times between October 2019 and May 2021. According to the SEC’s order, Chicago-based OCC’s failure to implement and comply with its own rule was the result of its failure to properly establish, implement, and enforce written policies and procedures reasonably designed to manage certain operational risks. In a parallel action, the CFTC has fined OCC $5million.
EBA seeks green loan information
The European Banking Authority (EBA) has launched an industry survey to receive input from credit institutions on their green loans and mortgages as well as market practices related to these loans. The purpose of the survey is to collect both quantitative and qualitative information which the EBA can use to advise the European Commission. The deadline for the call for input is 7 April 2023.
A selected summary of key developments for regulated financial institutions
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