SDDco Perspective Newsletter

October 2, 2019 | Vol 13. Edition 1

Dear SDDco Clients and Colleagues: Our SDDco Perspective includes industry news, guidance, regulatory rule updates, deadlines, and other timely matters impacting brokers, advisors, fintech firms, taxpayers, investors, and their service professionals. The SDDco Perspective is made available on our website monthly at http://sddco.com/resources-newsletter.

FINANCIAL INDUSTRY

Bryon Lyons


Bryon Lyons
CEO, SDDco Brokerage Advisors, LLC

FINRA, the Better Business Bureau, and Stamford Center Study Scams

On September 30, 2019, the FINRA Investor Education Foundation (“FINRA Foundation”) released a new report that focuses on better understanding “the conditions under which scam targets do not become victims in order to develop more focused and effective public education tools and strategies to protect consumers,” explains FINRA Foundation President Gerri Walsh. In celebration of World Investor Week, which starts September 30, securities regulators, stock exchanges, international organizations, investor associations and other stakeholders from almost 90 countries will be offering consumers an array of activities to increase awareness of investor education and protection. The 24-page report is entitled, Exposed to Scams: What Separates Victims from Non-Victims?

Exposed To Scams: What Separates Victims From Non-Victims?
New Fraud Research: Low Financial Literacy Levels and Social Isolation Increase Consumers’ Likelihood of Being Scammed
International Organization of Securities Commissions (“IOSCO”) launches third annual World Investor Week (“WIW”)

CYBERSECURITY & FINTECH

Erin Furtado


Erin Furtado
Head of Marketing

CYBERSECURITY

LastPass Remedies the Bug That Leaked Credentials

Did you ever think a password manager and vault keeper would have a vulnerability? Well, if you use LastPass, you could’ve been potentially exposed. LastPass did not update a cache which put users at risk for their credentials to be accessed by cybercriminals. The good news is that the company has fixed the vulnerability that could allow malicious sites unauthorized access to usernames and passwords. LastPass deployed the update to all browsers resolving the bug with no action needed from users. Security experts recommend that web users running LastPass ensure that the version of the software they’re running is 4.33 or later.

Read More >

 

FINTECH

Wall Street Banks Are Upping Bets on Potential Fintech Competitors

Have you ever considered investing in your competitors? Well, the largest U.S. banks are revving up investments in some of their potential fintech competitors to build out arms of their businesses. Thus far in 2019, major Wall Street banks have participated in 24 fintech equity deals. Goldman Sachs "acqui-hired" several fintech firms to build out its digital consumer bank, Marcus. Citi is the second most active in fintech deals, followed by J.P. Morgan acquiring a few payments technology companies and developing a new fintech campus in Palo Alto, CA. Analysts insist there are two key incentives driving the investments: banks can form strategic partnerships with the start-ups, and banks can profit from the investments. Have you ever considered partnering or "acqui-hiring" a fintech firm? The time is now.

Read More >

SDDco CYBER
COMPLIANCE & SUPPORT OFFERING

  • Become compliant with all state and federal requirements including FINRA, NYDFS, SEC, etc.
  • Infrastructure Testing including Penetration Testing
  • Customized and Tested Policies and Procedures
  • Fully Managed Incident Response Coverage
  • Data Security Training
  • Vendor Due Diligence
  • Risk Assessments

Cybersecurity graphic

Speak with an SDDco consultant about how we can help you navigate the nuances of armoring your firm through SDDco Cyber.

COMPLIANCE & REGULATORY

Ross Marlin


Ross Marlin
Associate Director

SEC Issues Risk Alert On Observations From Investment Adviser Examinations

The SEC’s Office of Compliance, Inspections and Examinations (OCIE) has issued a Risk Alert sharing its most common findings from its 2017 investment adviser examinations.

The findings noted in the alert included: inadequate disclosures of information regarding reportable events, inadequate supervision, and undisclosed conflicts of interest.

Read more >


To learn more about how SDDco can help strengthen your firm’s compliance program, click here.

HR COMPLIANCE

Elizabeth Drivas


Elizabeth Drivas
Business Consultant, Paychex

Even the MTA Warns: Fare Evasion Will Cost You.

According to New York State Law, “For-profit and nonprofit employers with 20 or more full-time non-union employees in New York City must offer their full-time employees the opportunity to use pre-tax income to pay for their commute. Under federal tax law and effective January 1, 2019, employees can currently use up to $265 a month of their pre-tax income to pay for qualified transportation.”

Although this is required to be offered to employees, some benefits could include:

  • Reducing employee commuting costs by up to 40%
  • Saving employers 10% or more on payroll taxes

Click here if you have any immediate questions about ensuring your business is compliant or reach out to our dedicated Paychex representative Elizabeth Drivas at (646) 228-5529.

IN THE SPOTLIGHT

Keep a lookout for us at upcoming conferences!

NSCP National Conference

NSCP National Conference

Baltimore, MD | Oct 21-23, 2019

Register Now: https://national.nscpconferences.org

FINRA Small Firm Conference

Santa Monica, CA | Oct 23-24, 2019

Register Now: https://www.finra.org/industry/finra-small-firm-conference

SDDco Group makes this general information available for educational purposes only, the contents of which were not originated from SDDco. SDDco is not affiliated with any of the publishing persons or entities of the articles herein. The information provided should not be construed as legal advice. This email may constitute an advertisement under U.S. law.

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