Insights & Regulatory Updates
The SEC’s $10 Billion Dilemma: The Challenges of Collecting Financial Penalties
The Securities and Exchange Commission (SEC) has long been heralded as a vigilant enforcer of securities laws, imposing billions of dollars in penalties on violators each year. However, a recent Wall Street Journal report reveals a sobering reality: over the past decade, the SEC has written off nearly $10 billion in fines it was unable to collect. This highlights the significant hurdles the agency faces in enforcing financial sanctions, particularly against individuals and entities adept at evading payment.
Should the SEC and CFTC Merge? A Comprehensive Analysis of a Long-Standing Debate
The longstanding debate over merging the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has gained fresh urgency after Elon Musk and Vivek Ramaswamy have reignited the conversation. While advocates argue a merger could simplify crypto regulation and bolster systemic risk management, critics warn of operational disruptions and political resistance. This article revisits the history of the merger debate, its modern relevance, and its implications for the future of U.S. financial regulation.
Corporate Transparency Act Reporting Obligations Reinstated with New Deadlines
On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit granted the U.S. government’s request for an emergency stay, effectively reinstating enforcement of the Corporate Transparency Act (CTA). The stay lifts a nationwide preliminary injunction issued earlier this month by the U.S. District Court for the Eastern District of Texas, which had temporarily blocked CTA compliance requirements and paused the January 1, 2025, reporting deadline.
Anderson’s Guide to Effective Independent Internal Investigations
Organizations face heightened scrutiny as financial misconduct, fraud, and ethical breaches become increasingly complex. A well-executed internal investigation is more than just a response to misconduct—it’s an opportunity to demonstrate accountability, strengthen compliance frameworks, and protect your organization’s reputation.
At Anderson P.C., we approach internal investigations with precision, independence, and the strategic foresight our clients demand. Whether you are addressing allegations of misconduct or reinforcing your compliance program, our tailored methodologies ensure thorough, defensible, and results-oriented outcomes.
A Quick Guide on AI in Corporate Compliance in 2025
As we step into 2025, artificial intelligence (AI) continues to redefine corporate landscapes, becoming both an asset and a focal point for regulatory scrutiny. In September 2024, the Department of Justice (DOJ) announced a significant shift in its Evaluation of Corporate Compliance Programs (ECCP), highlighting the risks associated with AI technologies. For organizations, this move underscores an urgent need to integrate AI risk management into their compliance frameworks.
The Supreme Court in 2025: A Conservative Court in a Changing America
The Supreme Court’s conservative majority reflects more than an ideological leaning—it mirrors the divisions and debates that define American society. For every voice warning of regression, another celebrates restraint and constitutional adherence. For every fear of rights curtailed, there’s a hope for balance restored. The Court’s decisions, however consequential, do not dictate the nation’s future.
Beware of Pig Butchering Schemes and the Growing Threat of Crypto Scams
2024 has seen alarming developments in the world of financial fraud, with North Korean hackers stealing a record $1.3 billion in cryptocurrency this year alone. According to a recent Chainalysis report, North Korean-linked hackers accounted for more than half of the $2.2 billion stolen from cryptocurrency platforms in 2024. While these state-sponsored cyberattacks pose a significant threat to national security, individual scams like pig butchering schemes are wreaking havoc on unsuspecting victims worldwide.
SEC Adopts Amendments to Broker-Dealer Customer Protection Rule: Daily Computations and Enhanced Safeguards
The Securities and Exchange Commission (SEC) has adopted amendments to Rule 15c3-3, commonly known as the Customer Protection Rule, implementing significant updates to the frequency of reserve calculations for broker-dealers. The changes are aimed at bolstering protections for customer assets and enhancing financial stability within the securities markets.
Framework for White-Collar Crime in the United States
White-collar crimes are non-violent, financially motivated offenses typically committed by individuals in professional positions of trust. These crimes are generally classified as felonies, the most serious category of offenses, punishable by more than one year of imprisonment. Understanding the classification and legal implications of white-collar crimes is essential for grasping the severity of penalties involved.
FINRA Regulatory Notice 24-16: Simplified Customer Arbitrations and Document Production Lists
FINRA recently issued Regulatory Notice 24-16, announcing amendments to the applicability of the Document Production Lists for simplified customer arbitrations under Rule 12800. These changes, effective March 3, 2025, introduce greater flexibility for customers while clarifying the rules surrounding discovery in such proceedings. Simplified customer arbitrations are designed for disputes involving $50,000 or less, excluding interest and expenses.
FINRA’s December Meeting: Outside Activities Reform and Emerging Legal Challenges
The December 2024 FINRA Board of Governors meeting comes at a critical juncture, as the organization seeks to modernize its regulatory frameworks while grappling with heightened scrutiny of its authority and practices. Key among the discussions was FINRA’s proposal to consolidate its Outside Business Activities (OBA) and Private Securities Transactions (PST) rules into a unified Outside Activities Requirements Rule. However, this initiative takes place against the backdrop of two significant legal challenges: the Alpine Securities Corp. v. FINRA ruling, which questioned FINRA’s expedited expulsion procedures, and the federal lawsuit Preston v. SEC, which challenges the validity of FINRA Rule 3270 governing outside activities.
Crypto Advocates Celebrate as Caroline Crenshaw’s Renomination Vote is Canceled
In a notable development for the cryptocurrency industry, the Senate Banking Committee has canceled its vote on the renomination of SEC Commissioner Caroline Crenshaw. Originally scheduled for Wednesday, the vote was postponed due to a procedural conflict, according to a report by FOX Business journalist Eleanor Terrett. With Congress set to adjourn on December 20, this delay ensures that Crenshaw’s renomination will not be processed in time, leaving her future on the Commission uncertain.
ICAN Petitions Court to Compel SEC Review of “Accredited Investor” Rule
The Investor Choice Advocates Network (ICAN) has filed a writ of mandamus seeking to compel the SEC to review its definition of “accredited investor,” sparking renewed debate over a long-standing rule that governs participation in private investment markets. At the heart of the issue is whether the current standard, which limits eligibility based on income or net worth, strikes the right balance between protecting investors and fostering economic growth.
Crypto Groups Push Back Against Crenshaw Nomination: How Much Power Can One Commissioner Wield?
The nomination of U.S. Securities and Exchange Commission (SEC) member Caroline Crenshaw is sparking fierce resistance from the crypto industry. Dubbed “even more extreme” than SEC Chair Gary Gensler by critics, Crenshaw’s reappointment is being targeted through digital ad campaigns and lobbying efforts. The Cedar Innovation Foundation, a dark-money group backed by unnamed crypto interests, has taken center stage in this opposition, citing her consistent criticism of digital assets and reluctance to approve spot bitcoin exchange-traded funds (ETFs).
SEC Exam Priorities for 2025: What They Mean for Investment Advisers
The Securities and Exchange Commission (SEC) has released its exam priorities for 2025, providing a roadmap for investment advisers to align their compliance programs with the regulator’s expectations. While the political transition under President Donald Trump may result in fewer enforcement actions than under the Biden administration, certain core priorities remain steadfast, regardless of the administration.
Corporate Transparency Act on Pause Pending DOJ Appeal: What it Means for January 1 and Beyond
On December 5, 2024, the Department of Justice (DOJ), on behalf of the Department of the Treasury, filed a Notice of Appeal to the Fifth Circuit Court of Appeals, challenging the nationwide preliminary injunction halting the enforcement of the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirements. The injunction, issued by the U.S. District Court for the Eastern District of Texas, has left companies wondering: What does this mean for compliance? What happens next? And how long will the uncertainty last?
Ex-Allianz Fund Manager Avoids Prison
The former Chief Investment Officer of Allianz Global Investors (AGI) and co-lead portfolio manager of the Structured Alpha funds, recently avoided prison despite pleading guilty to investment adviser fraud. The case, involving over $7 billion in losses for institutional investors, serves as a pivotal example of the risks and responsibilities in financial markets.
Reframing the Critiques of a U.S. Bitcoin Reserve: A Legal, Economic, and Strategic Analysis
The concept of the U.S. government establishing a Bitcoin reserve has been met with widespread skepticism. Bloomberg’s recent editorial, “Donald Trump’s Bitcoin Reserve Would Rip Off Taxpayers,” encapsulates the majority of critiques, which dismiss Bitcoin as speculative, a waste of taxpayer money, and an unnecessary risk to fiscal stability. These critiques, however, fail to account for the legal, economic, and strategic rationale underlying the proposal, as exemplified by the recently introduced BITCOIN Act of 2024.
What to Expect from SEC Chair Paul Atkins: Potential Reforms and Priorities
The nomination of Paul Atkins as Chair of the Securities and Exchange Commission (SEC) signals a new era for the agency. This article explores 13 potential reforms and priorities that could define Atkins’ leadership, based on his past positions, public statements, and the regulatory landscape he inherits.
Heightened SEC Scrutiny: Investment Advisers' MNPI Policies Under the Microscope
The Securities and Exchange Commission (SEC) is intensifying its scrutiny of investment advisers’ compliance programs, particularly concerning policies and procedures designed to prevent the misuse of material nonpublic information (MNPI). Recent enforcement actions reveal that even well-intentioned but inadequately tailored policies can fall short of regulatory expectations, underscoring the importance of aligning compliance efforts with the unique risks of an adviser’s business activities.