Enforcement

FINRA Fines Pictet Overseas and Blue Ocean ATS Over AML and Supervisory Failures

Summary: FINRA announced settlements with Pictet Overseas Inc. and Blue Ocean ATS LLC relating to alleged anti-money laundering (“AML”) and supervisory deficiencies. According to FINRA, the firms failed to establish and implement reasonably designed AML programs and supervisory systems tailored to their business activities and associated risks. The actions included findings tied to transaction monitoring, suspicious activity detection, and oversight of trading activity conducted through the firms’ platforms and customer relationships.

Why it matters: The actions reinforce FINRA’s continued focus on AML surveillance, supervisory controls, and risk-based monitoring frameworks, particularly for firms involved in cross-border activity, alternative trading systems, or higher-risk transaction flows. Regulators continue to scrutinize whether firms are appropriately calibrating surveillance programs to evolving business models, customer activity, and transaction risks rather than relying on static or generic compliance procedures.

Potential action: Firms may want to reassess AML monitoring systems, escalation procedures, and supervisory frameworks to ensure they are appropriately tailored to current business operations and transaction risks. Compliance teams should also evaluate whether surveillance reviews, exception reporting, and suspicious activity investigations are adequately documented and periodically tested for effectiveness.

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What Regulators are Saying

SEC and NFA Announce Enhanced Regulatory Coordination Agreement

Summary: The SEC and The NFA announced a new Memorandum of Understanding (“MOU”) aimed at strengthening cooperation, coordination, and information sharing between the two regulators. The agreement is intended to improve oversight efficiency through coordinated examination planning, periodic interagency meetings, and enhanced communication regarding emerging risks, supervisory priorities, and market developments.

Why it matters: Investment advisers, commodity pool operators, CTAs, and other firms operating across securities and derivatives markets should expect increased coordination between regulators during examinations and oversight activities. The announcement reflects a broader push toward regulatory harmonization and may result in more streamlined — but potentially broader — examination efforts involving multiple regulatory bodies. Firms should assume that information shared with one regulator could more readily inform reviews or inquiries by another.

Potential action: Firms may want to revisit compliance frameworks governing both securities and derivatives activities to ensure consistency across disclosures, recordkeeping, surveillance, and supervisory procedures. Managers should also assess internal processes for handling regulatory inquiries and examination requests in anticipation of more coordinated oversight efforts.

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CFTC and NHL Sign Agreement Focused on Sports Prediction Market Integrity

Summary: The CFTC and the National Hockey League announced a Memorandum of Understanding (“MOU”) aimed at protecting the integrity of professional hockey and related prediction markets. Under the agreement, the CFTC and NHL will coordinate and share information concerning integrity risks, market activity, insider trading concerns, and other potential abuses tied to event contracts offered on CFTC-regulated exchanges. The announcement also noted that the NHL has implemented monitoring protocols and integrity protections relating to these markets.

Why it matters: The agreement reflects the continued expansion of regulatory oversight surrounding prediction markets and event contracts. Regulators are increasingly treating these markets similarly to more traditional financial markets, with heightened focus on insider trading, misuse of nonpublic information, market manipulation, and integrity controls. The MOU also signals growing cooperation between regulators and sports leagues as event-based trading products continue to evolve and attract market participation.

Potential action: Firms participating in or facilitating access to prediction markets may want to reassess surveillance controls, MNPI policies, employee trading restrictions, and escalation procedures relating to event contracts. Compliance teams should also evaluate whether existing policies sufficiently address integrity risks associated with sports-related or politically sensitive event-driven trading activity.

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Events

SEC Announces 2026 Compliance Outreach Seminar for Investment Advisers and Investment Companies

Summary: The SEC New York Regional Office will host a virtual Compliance Outreach Program seminar for investment advisers and investment companies on June 16, 2026, from 9:15 a.m. to 2:15 p.m. ET. SEC examinations and enforcement staff will discuss a range of current compliance topics, including examination priorities, enforcement trends, and issues affecting newly registered advisers. The program is designed to provide practical insights for chief compliance officers and other senior personnel responsible for overseeing compliance programs.

Why it matters: The SEC’s outreach seminars often provide an early indication of the issues regulators are focusing on in examinations and enforcement actions. For advisers, the program offers a direct opportunity to hear from SEC staff on current expectations and emerging areas of scrutiny, including topics that may shape exam preparedness and compliance testing in the coming year.

Potential action: Chief compliance officers and legal teams should consider attending the seminar and reviewing the agenda to identify areas where internal policies, testing, and disclosures may warrant additional attention. Firms may also use the program as an opportunity to benchmark their compliance framework against current SEC expectations and prepare for future examinations.

Read More Here(SEC)