Nine Cases and Scenarios Involving Retail Financial Compliance
Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 07
Abstract
This article discusses retail financial compliance from the perspective of nine cases and scenarios. First, the paper defines financial compliance, a fiduciary, a fiduciary’s standard of care, and a broker/dealer. It then describes under what conditions a broker/dealer is a fiduciary. Next, the Consumer Protection Rule is explained and its application to Merrill Lynch’s misuse of customer funds, where the company did not deposit customer cash in a reserve account, thereby putting customer money at risk in the event of bankruptcy. The five Anti-Money Laundering pillars are listed, including designating a compliance officer, completing risk assessments, building internal controls and AML policies, monitoring and auditing an AML program, and performing customer due diligence. Third, the Stanley Smith Barney, LLC and the UBS Group AG subsidiaries UBS Financial Services, Inc. and UBS Securities, LLC anti-money laundering cases are evaluated. Fourth, a fictitious scenario illustrates the consequences that may occur when a registered representative for a broker/dealer uses their personal email to communicate with customers about business-related matters, including potentially violating Financial Industry Regulatory Authority rules. Fifth, three financial compliance surveillance cases are highlighted, demonstrating that financial compliance can be breached inadvertently or because of the seeming incompetence of a Chief Compliance Officer. Sixth, a fictitious scenario is portrayed, where a fake retail account is discovered and what should be done to rectify the situation. Seventh, the Société Générale scandal is outlined, and whether Jérôme Kerviel was a culprit who was formatted and distorted by the company. The facts indicate that both issues were involved in the scandal. Eighth, a fictitious scenario is provided, where an individual with 30 years of experience working for a broker/dealer decides to become an investment adviser. The section explores the advantages and disadvantages of hiring such an individual. Finally, a fictitious scenario is given in which three possible unauthorized trades occur. The article explores the conditions under which the trades were genuinely unauthorized. These cases and scenarios remind us that things should be taken at a different level than face value. A certain amount of disbelief is essential to certify fairness and justice. Retail financial compliance cases and scenarios usually contain many shades of gray, where doubt can be effectively employed to expose material facts. Only then can an accurate picture of a situation be evaluated.
Authors and Affiliations
Donald L. Buresh, Ph. D. , Esq.
Keywords
Related Articles
- EP ID EP741464
- DOI 10.47191/ijsshr/v7-i07-125
- Views 29
- Downloads 0
Legal Review of Administrative Law Related to the Examination of Abuse of Authority by Government Officials in Corruption Cases in Indonesia
The conflict that arises is related to the abuse of authority by government officials in Indonesia. The problem that can be analyzed is to analyze it from a criminal law perspective related to examining the abuse of auth...
The Effect of Counseling Group towards Self-efficacy at Victim Bullying Students
Bullying is still being a phenomenon in Indonesia. Victims of bullying is not just passive actors in bullying situations. In 2021 the data of Junior High School in Cirebon City, bullying cases reached to 83 cases. One of...
Application the Theory of Identification in Corporate Accountability to Corruption Crimes Based On the National Criminal Code and the Corruption Crime Law
The purpose of this study is to find out how the provisions regarding corporate accountability in corruption crimes according to the Corruption Law and to analyze how the role of identification theory in the event of cor...
The Influence of Professionalism and Interaction on Purchase Intention in TikTok Shop Live Streaming
Live streaming is rapidly becoming the future of online shopping, particularly in Indonesia. It allows buyers to make immediate purchases and interact directly with live streamers. Indonesia is the second largest TikTok...
Multicultural Education in Foreign Language Teaching: Task-Based Approach
The aim of this paper is to propose a methodological framework for incorporating multicultural education into foreign language teaching using a task-based approach. The paper presents three objectives for achieving this...