Supervision Overview: Review of the Supervision Landscape in 2024 and Lessons Learned

Capital Markets Supervision Update

December 23: Japan Financial Services Agency (FSA) Strategic priorities for July 2024 to June 2025 were announced, underscoring the commitment to drive reforms and keep policy measures and tools under review.

December 18: bank of england Released the Financial Market Infrastructure Report detailing efforts to maintain financial stability and promote innovation through the regulation of critical financial infrastructure companies. The report outlines achievements in meeting statutory targets, implementing new regulatory powers under FSMA 2023, and advancing innovation related to stablecoins and the Digital Securities Sandbox.

December 17: UK Financial Conduct Authority (FCA) A consultation is underway on proposals for a new trading venue – the Private Intermittent Securities and Capital Trading System (PISCES) – which would allow private companies to open trading windows for employees and early investors to sell shares.

December 17: European Securities and Markets Authority (ESMA) A final report containing regulatory technical standards and guidance has been released ahead of the implementation of the Markets in Crypto-Assets Regulation (MiCA).

December 16: Australian Securities and Investments Commission (ASIC) An annual dashboard has been published outlining regulatory costs by industry and sub-sector in 2023-24. Total regulatory costs recovered through taxes on all industries were approximately $328 million.

December 12: Financial Stability Board (FSB) Publish recommendations on the regulation of data flows and cross-border payments to address data flow frictions, promote fair competition between bank and non-bank payment service providers, and advance the goals outlined in the G20 Cross-border Payments Roadmap.

December 4: United States Commodity Futures Trading Commission (CFTC) Monetary relief announced for fiscal year 2024 will exceed $17.1 billion, a record high, including $2.6 billion in civil penalties and $14.5 billion in forfeitures and restitution. In fiscal year 2024, the CFTC initiated 58 new actions, including landmark digital asset commodity cases, fraud investigations in the voluntary carbon credit market, cross-industry manipulation cases, and major compliance matters.

Fines and enforcement actions

this National Market and Competition Commission (CNMC) GESTERNOVA SA was fined €6 million and AXPO IBERIA was fined €1.5 million for manipulating the Spanish electricity market. As Algorithmic Exchange revealed, these companies violated REMIT by obtaining an advantage in cross-border sales with France by falsely quoting and placing false orders, with the aim of monopolizing the order queue for specific energy products.

this Monetary Authority of Singapore (MAS) A major financial institution has been assessed a $2.4 million civil penalty for the misconduct of its relationship managers (RMs) in connection with 24 over-the-counter bond transactions in which clients were charged higher than agreed-upon interest rates due to inaccurate disclosures. interest rate spread.

this Authority for Financial Markets (AMF) The Enforcement Commission imposes fines on entities and individuals for spreading false or misleading information and manipulating prices. Fines totaling €4,150,000 were imposed on four legal entities and three individuals, ranging from €50,000 to €300,000.

this Special Integrated Circuit Australian Kraken cryptocurrency exchange operator Bit Trade Pty Ltd has been fined $8 million for illegally extending credit facilities to more than 1,100 customers without identifying the target market. The Federal Court held that Bit Trade breached its design and allocation obligations by providing margin extensions without the necessary TMD, causing customers to suffer significant financial losses.

A former accountant for Heartland Bank Ltd pleads guilty to insider trading charges brought against him by New Zealand Financial Markets Authority (FMA). The former accountant traded in and encouraged another person to own shares in Heartland Group Holdings Limited (HGH) while possessing material information not generally available to the public.

Brazilian Securities and Exchange Commission (CVM) A former official of IRB Brazil RE has been fined approximately $3.2 million for stock price manipulation related to false information about Warren Buffett’s interests. The ruling highlighted the former official as the source of misinformation that caused IRB stock to surge and specified a financial motive related to the bonus.

this UK Financial Conduct Authority A former airline executive has been fined £123,500 for trading during a restricted period and failing to disclose his personal dealings within the required time.

A securities trader from Massachusetts was sentenced to 30 days in jail for his role in a years-long market manipulation conspiracy at the American Stock Exchange. The trader worked with a group of traders to manipulate the price of securities by placing deceptive orders, subsequently profited from their scheme, and then canceled the original orders.

this U.S. Securities and Exchange Commission The former Comtech CEO was charged with insider trading, allegedly avoiding losses of approximately $122,445 by selling company stock based on confidential negative earnings information prior to its public release.

The founder and former CEO of Celsius Network LLC pleaded guilty to commodities fraud and securities fraud in connection with the Celsius fraud scheme, misleading customers about the company’s success and manipulating the price of CEL tokens.

this U.S. Securities and Exchange Commission Alleges that Morgan Stanley Smith Barney LLC’s lax oversight allowed financial advisers to embezzle millions of dollars from clients. MSSB agreed to pay a $15 million fine, make commitments and conduct a compliance review.

this U.S. Securities and Exchange Commission Reached settlement with two financial firms over allegations they failed to provide accurate securities trading data for years. Each company agreed to pay a $900,000 civil penalty after an investigation revealed numerous inaccuracies and omissions in the blue forms it submitted.

this U.S. Securities and Exchange Commission Alleges Deutsche Bank Securities failed to timely file certain suspicious activity reports (SARs). Deutsche Bank Securities Inc. has agreed to pay a $4 million civil penalty to settle SEC charges.

this U.S. Securities and Exchange Commission A Florida man was charged with manipulating securities prices in a fraudulent deception scheme that netted him more than $380,000 in profits. The SEC charged the individual with anti-fraud violations, resulting in a settlement in which he agreed to pay $381,718 in disgorgement, $57,570.48 in prejudgment interest, and a $150,000 penalty.

this U.S. Securities and Exchange Commission Tai Mo Shan Limited is accused of misleading investors about the stability of Terra USD (UST). The SFC further alleges that Tai Mo Shan, as a statutory underwriter, issued and sold securities in unregistered transactions in connection with certain issuances and sales of LUNA, a crypto-asset issued and sold as securities by Terraform.

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