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Weekly Digest: November 25th
Financial Services Industry Braces for Regulatory Overhaul in 2024
The financial services sector is preparing for significant regulatory changes in 2024, affecting banking, capital markets, insurance, and investment management. Key updates include enhanced cybersecurity requirements and stricter oversight of mid-size regional banks and fintech companies. Firms are advised to adopt proactive compliance strategies and invest in technology to navigate this evolving landscape.
RIA Settles SEC Charges Over Undisclosed Fee Increases
Raskob Kambourian Financial Advisors (RKFA), a Tucson-based registered investment advisor, agreed to pay approximately $1.8 million to settle SEC allegations of failing to disclose fee increases to clients. Between May 2019 and July 2022, RKFA charged 59 clients $1.36 million more than authorized under their agreements. The settlement underscores the importance of transparent fee structures and diligent client communication.
BlackRock Acquires SpiderRock Advisors’ Option Overlay Business
BlackRock has acquired SpiderRock Advisors, a firm specializing in customized option overlays designed to enhance returns and manage risk. This acquisition reflects the growing demand for sophisticated risk management strategies among advisors and their clients. SpiderRock’s expertise in tax-efficient options strategies is expected to complement BlackRock’s existing offerings, providing advisors with more tools to meet diverse client needs.
