Policy Patty Toolkit 

Making the world a little more compliant one toolkit at a time.


The Policy Patty Toolkit Blog covers emerging issues on governance, risk and compliance controls.

This Blog is made available by the Policy Patty Toolkit for informational purposes only to cover emerging legal, governance, regulatory and compliance matters and issues. The postings are not intended to provide specific professional advice (legal, tax, or accounting) to an identified problem or issue. By using this Blog, you understand and acknowledge that there is no attorney-client relationship formed between us and should not use this site as a substitute for legal advice from your legal counsel regarding a particular matter or advice from another professional.

view:  full / summary

SEC Charges Agria Corporation and Executive Chairman With Fraud

Posted on December 10, 2018 at 3:30 PM
SEC settled charges with Agria Corporation for concealing substantial losses from investors through fraudulent accounting in connection with its divestiture of its primary operating entity. In a related action, the company???s executive chairman Lai Guanglin (aka Alan Lai) settled charges that he manipulated the company???s share price. As described in the SEC???s order: 1) Agria Corporation sold its Chinese operating company in return for stock and land use rights to 13,500 acres of undev... Read Full Post »

FINRA Issues Report on Examination Findings

Posted on December 8, 2018 at 10:05 AM
FINRA issued its annual report addressing certain aspects of the firm???s compliance with specific securities laws and regulations. The report is another resource for firms to strengthen their compliance programs and supervisory controls. Some firms have requested that FINRA make publicly available a summary of observations from the firm examination program so they can further improve their practices and processes based on the experiences of other firms, as well as better anticipate and address ... Read Full Post »

DFS Takes Action Against National Integrity Life Insurance

Posted on December 6, 2018 at 11:50 AM
New York's Department of Financial Services announced that National Integrity Life Insurance Company will pay a $240,000 civil monetary penalty for violations of New York Insurance Regulations 187 and 60 that govern practices for replacing deferred annuity contracts with immediate annuity contracts. In addition, National Integrity has agreed to make restitution to individual consumers affected by its former replacement practices. The settlement is part of DFS???s on-going investigation into... Read Full Post »

FTC Seeks Comment on Identity Theft Detection Rules

Posted on December 5, 2018 at 5:25 PM
The Federal Trade Commission ("FTC") is seeking comment on whether the agency should make changes to rules requiring that financial institutions and creditors take certain steps to detect signs of identity theft affecting their customers. As part of the Commission's periodic review of all its rules and guides, the FTC is seeking comment on whether any modifications should be made to the Red Flags Rule and the Card Issuers Rule. The Red Flags Rule requires financial institutions and some cred... Read Full Post »

DOJ Enforcement Actions - Week of December 3, 2018

Posted on December 4, 2018 at 10:35 AM
The following is a listing of recent actions by the US Department of Justice with more items accessible via the Read More link below: Press Release Political Operative Convicted of Federal Campaign Finance Crimes in Two Congressional Campaigns and of Obstructing Investigation by Federal Election Commission Press Release Former CEO of Detroit-Based Technology Company Sentenced to One Year in Prison for Bribery Press Release Florida Man Sentenced to Three Years in Prison for Surrept... Read Full Post »

FINRA Actions - December 3, 2018

Posted on December 3, 2018 at 6:05 PM
Technical Notice TRACE for Securitized Products API Specification Update FINRA has updated the TRACE for Securitized Products Web API technical specification. A new code of "U", representing UMBS, has been added to the Issuing Agency Values in Appendix 8. Read More: http://www.finra.org/industry/trace/trace-securitized-products-api-specification-update Notice Regulatory Notice 18-39 Unexpected Close of Securities Markets This Notice provides guidance to members regarding SEA Rules 15... Read Full Post »

FINRA Investor Alert - Storing and Securing Cryptocurrencies

Posted on December 1, 2018 at 11:30 AM
FINRA issued an Investor Alert on a few things to keep in mind when it comes to crypto storage and security. Two Types of Keys First, it is important to remember that your cryptocurrency is represented by a public key and a private key. Think of a public key like you would an email address???this identifies cryptocurrencies you receive and you can use it to send or transfer cryptocurrencies to another individual. A private key is the secret key???an alphanumeric code???that represents your p... Read Full Post »

SEC Charges Self-Described Promoter With Microcap Market Manipulation Scheme

Posted on November 29, 2018 at 4:10 PM

The SEC charged a self-described penny stock promoter and an entity he controlled with orchestrating a scheme to manipulate trading in at least 97 microcap stocks.

According to the SEC’s complaint:

  • Eric Landis of Charlottesville, Virginia, falsely claimed to third-party media buyers for microcap companies that he would distribute promotional materials for the stocks via email lists with tens of thousands of subscribers.
  • In reality, his distribution lists were a ...
Read Full Post »

DFS Approves CVS Health's Acquisition of Aetna Insurance

Posted on November 27, 2018 at 1:35 PM
New York's Department of Financial Services announced that it has approved CVS Health Corp. and CVS Pharmacy Inc.???s application to acquire Aetna Health Insurance Company of New York, a New York domestic stock accident and health insurance company, following a public hearing and extensive public comment period. DFS approved the acquisition subject to a number of conditions to which CVS and Aetna have agreed including enhanced consumer and health insurance rate protections, privacy controls, cy... Read Full Post »

Citigroup Global Markets to Pay $409K for Overcharging Customers

Posted on November 27, 2018 at 8:55 AM

As reported in Financialish.com (https/www.financialish.com/):

Citigroup Global Markets agreed to pay a $100K fine plus $309K in restitution to eligible customers, to settle FINRA charges that it disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge.

CGMI, a New York, NY-based broker-dealer since 1936, is a full-service firm providing investment...

Read Full Post »