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Expect more fintech enforcement actions in 2018

Regulatory Compliance


Advisors can expect to see more fintech enforcement actions or regulations in 2018, particularly in the areas of blockchain, cryptocurrency and robo-advising, attorneys tell ThinkAdvisor. “The blockchain and cryptocurrency area is one where we expect a number of new developments, though it is very likely that such developments will take the form of enforcement-type actions rather than new regulations,” Anthony Tu-Sekine, an attorney at Seward & Kissel, told the publication. See the details below. Also, advisors should take note that the SEC recently released a bulletin cautioning investors to understand and analyze the fees and services involved in wrap fee programs. The bulletin, “Investment Adviser Sponsored Wrap Fee Programs,” provides a list of questions investors should ask an advisor who recommends a wrap account, explains Financial Advisor. See the full story below.

Advisors Beware: More Fintech Regs, Enforcement Coming in 2018

By Ed Silverstein

Source: ThinkAdvisor

Next year could see more enforcement actions – and possibly some new regulations – when it comes to fintech that involves financial advisors. For instance, Jeffrey Neuburger, an attorney at Proskauer Rose, told ThinkAdvisor that regulators are already “very focused on the fintech area, and it is likely that we will see more regulation in 2018 in this area.”


SEC Cracking Down On Wrap Fee Abuses

By Tracey Longo

Source: Financial Advisor

Wrap fee programs remain squarely in the Securities and Exchange Commission’s sites, as evidenced this week by a new investor bulletin that lays out all the questions investors should be asking advisors who recommend wrap fee accounts. The bulletin, “Investment Adviser Sponsored Wrap Fee Programs,” not only asks investors to dissect any and all fees they may be charged in a wrap fee plan and disclosures they should receive, it cites the specifics of five different administrative proceedings the SEC has brought against investment advisors for failing to disclose additional fees.