FCA updates regulatory initiatives grid
The Financial Conduct Authority (FCA) has updated its regulatory initiatives grid which outlines its priorities for the remainder of the year and into 2024.
Originally published in February 2023, the grid timetables the launch of Consumer Duty; LIBOR transition; and proposed implementation of Basel 3 standards.
The July update covers the approval of the Financial Services and Markets Act 2023 (FSMA 2023) with its new secondary objectives for both the FCA and the Prudential Regulation Authority and new cost benefit analysis panels being introduced by both regulators. Also mentioned in the update is the joint initiative with UK Treasury to undertake a holistic review of the boundary between advice and guidance; the Bank of England’s s System-Wide Exploratory Scenario exercise in June, investigates the behaviours of banks and non-bank financial institutions in stress and a forthcoming policy statement on sustainability disclosure requirements.
Former BD rep charged by SEC for market manipulation scheme
James P Anglim, a former broker-dealer registered representative, has been charged by the Securities and Exchange Commission (SEC) for his participation in market manipulation schemes. Anglim facilitated the illegal sale of stock in at least five public companies at manipulated prices. Anglim has agreed to settle the case, which includes a payment of $488,000.
According to the SEC’s complaint, Anglim was employed as a registered representative at two different United States-based brokerage firms involved in market-making activities — providing liquidity to the securities markets by publicly quoting both buy and sell prices for stocks and offering to trade with the public at those prices. The complaint alleges that Anglim misused his position as a trader to enable the unlawful sale of stock into the public markets by other individuals who controlled substantial blocks of stock in multiple public companies. Through his actions, Anglim helped these individuals unload significant quantities of stock while concealing their involvement, thus evading disclosure requirements mandated by federal securities laws. Notably, the individuals charged with fraud by the Commission were not clients of the brokerage firms where Anglim was employed. However, the complaint alleges that Anglim repeatedly entered into agreements with them, aiding in stock transactions that not only benefitted himself but also facilitated their fraudulent activities. In some instances, the individuals artificially inflated demand for the stocks through aggressive sales communications or boiler rooms, leading retail investors to purchase the stock based on manipulated price and volume information.
Without admitting or denying the SEC’s allegations, Anglim has agreed to a final judgment that permanently prohibits him from violating Section 17(a) of the Securities Act of 1933 and Sections 9(a) and 10(b) of the Securities Exchange Act of 1934, as well as Rule 10b-5. The settlement also entails disgorgement of $405,991, representing Anglim’s trading profits, and $82,009 in prejudgment interest.
This case highlights the SEC’s commitment to maintaining the integrity of the securities markets and protecting investors from fraudulent practices. The charges against Anglim demonstrate the consequences of participating in market manipulation schemes and abusing one’s position within the financial industry. The SEC continues to actively investigate and take legal action against individuals involved in such unlawful activities, aiming to safeguard the interests of investors and maintain fair and transparent markets.
FINRA July disciplinary summary
FINRA has published its latest disciplinary summary for July 2023 covering a range of enforcement actions. Amongst those mentioned for violations are Centaurus Financial, Inc; Merrill Lynch; Madison Avenue Securities and JP Morgan Securities.
A selected summary of key developments for regulated financial institutions
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