News Nuggets | 13 September: SEC Charges Virtu, YieldStreet; HK Warns against Crypto Firm

<p>SFC Issues Warning on
Unregulated Virtual Asset Trading Platform JPEX</p><p>The
Securities and Futures Commission (SFC) has issued a warning against the
unregulated virtual asset <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a>, JPEX. The SFC has observed several
suspicious features about JPEX's practices and has requested social media
influencers and key opinion leaders to cease promoting it.</p><p>“The SFC
takes this opportunity to warn investors to be cautious about investment
opportunities that seem too good to be true. Investors should be skeptical of
investment advice posted on social media platforms and instant messengers by
KOLs who are often paid promoters but not investment professionals,” the market
watchdog commented in a written statement.</p><p>JPEX
operates as a Virtual Asset Trading Platform (VATP) through its website
jp-ex.io, a site that has been flagged on the <a href="https://www.financemagnates.com/tag/sfc/" target="_blank" rel="follow">SFC's</a> Alert List since July 8,
2022. Although JPEX holds registrations with some foreign regulatory bodies,
these do not grant the platform legal authorization to offer virtual asset
trading services in those regions. Contrary to its claims of being
headquartered in Dubai and overseen by the Virtual Assets Regulatory Authority
of Dubai (VARA), JPEX is conspicuously absent from VARA's publicly available
list of licensed virtual asset service providers.</p><p>SEC Charges YieldStreet
for Misleading Investors</p><p>The
Securities and Exchange Commission (<a href="https://www.financemagnates.com/tag/sec/" target="_blank" rel="follow">SEC</a>) has charged YieldStreet Inc. and its
subsidiary, YieldStreet Management LLC, for failing to disclose critical
information to investors in a $14.5 million asset-backed securities offering.
The SEC found that YieldStreet did not disclose a heightened risk of being
unable to seize collateral in the event of a loan default, leaving investors
facing significant losses.</p><blockquote><p lang="en" dir="ltr">Today we announced a settled action against New York-based YieldStreet Inc. and its registered investment adviser subsidiary, YieldStreet Management LLC, for failing to disclose critical information to investors in a $14.5 million asset-backed securities offering.</p>— U.S. Securities and Exchange Commission (@SECGov) <a href="https://twitter.com/SECGov/status/1701648725410566348?ref_src=twsrc%5Etfw">September 12, 2023</a></blockquote><p>“YieldStreet
aims to unlock the complex alternative investments market for retail investors
but failed to disclose glaring red flags it had about the security of the
collateral backing this offering,” Osman Nawaz, the Chief of the SEC
Enforcement Division’s Complex Financial Instruments Unit, said. “As this case
shows, we are committed to ensuring that investors in any asset class,
including ‘alternative’ asset classes, receive complete and accurate
disclosures about those investments.”</p><p>SEC Files Charges Against
Virtu Financial</p><p>The SEC has
also filed charges against broker-dealer Virtu Americas LLC and its parent
company, Virtu Financial Inc., for making false and misleading statements
regarding information barriers. The SEC alleges that Virtu Americas failed to
safeguard sensitive customer information, creating a significant risk of
misuse.</p><blockquote><p lang="en" dir="ltr">Today we filed charges against broker-dealer Virtu Americas LLC and its parent company, Virtu Financial Inc. for making materially false and misleading statements and omissions regarding information barriers to prevent the misuse of sensitive customer information.</p>— U.S. Securities and Exchange Commission (@SECGov) <a href="https://twitter.com/SECGov/status/1701703801940426797?ref_src=twsrc%5Etfw">September 12, 2023</a></blockquote><p>“Virtu
allegedly painted a materially misleading picture as to the safeguards it had
in place to protect its customers’ confidential information, even when
customers specifically asked about the firm’s handling of their post-trade
information,” Carolyn M. Welshhans, the Associate Director of the SEC’s
Enforcement Division, stated. “As our enforcement action shows, the SEC is
committed to ensuring that firms provide accurate information for customers to
make their investment decisions.”</p><p>Isavella Frangou Bids
Farewell to payabl. After a Decade</p><p>Isavella
Frangou, a key figure at payabl., announced her departure after a decade-long
tenure. Starting as a Sales and Marketing Manager, Frangou climbed the ranks to
lead <a href="https://www.financemagnates.com/tag/sales/" target="_blank" rel="follow">Global Sales</a>. She expressed gratitude towards her colleagues, mentors, and
customers, and is looking forward to new opportunities in her career.</p><p>“As I step
into this new chapter of my career, I'm excited about the possibilities ahead
and the chance to apply the skills and experiences I've gained at payabl. to
new endeavors. I'm also open to connecting with fellow professionals who share
similar passions and interests,” Frangou wrote in LinkedIn post.</p><p>Paul Simpson Joins
Broadridge as Vice Chairman</p><p>Broadridge
Financial Solutions has appointed Paul Simpson as the Vice Chairman of its
Global Technology and Operations business. Simpson brings over 30 years of
experience in financial services and will focus on enhancing client
relationships and accelerating product initiatives. He will report to the Broadridge President, Chris Perry and GTO President, Tom Carey.</p><p>"Paul's
insights will be incredibly valuable as we drive both simplification and
innovation in the front and back office for Capital Markets and deliver the
Wealth Management platform of tomorrow to our clients today," Carey
commented. "Paul brings an important understanding of the technology and
operational needs of our clients."</p><p>Broadridge Unveils
Next-Gen Digital Investor Communications Platform</p><p>In a separate
announcement, <a href="https://www.financemagnates.com/tag/broadridge/" target="_blank" rel="follow">Broadridge </a>revealed the international launch of its
next-generation digital communications platform, Broadridge Communications
Cloud. The platform aims to improve investors' experiences by providing
enhanced customer experiences and data-centric insights, thereby reducing costs.</p><p>"As
the world continues to shift to digital and more personalized communications,
investors are demanding the same type of experience, access, and instant
service from their financial service providers," Demi Derem, the Senior
Vice President of International Investor Communications, Digital Transformation
&amp; Market Innovation at Broadridge, commented.</p><p>TS Imagine Announces
Partnership with eflow</p><p><a href="https://www.financemagnates.com/tag/ts-imagine/" target="_blank" rel="follow">TS Imagine</a>
has entered into a strategic partnership with eflow, a provider of regulatory
<a href="https://www.financemagnates.com/terms/c/compliance/">compliance</a> solutions. The collaboration aims to enhance trade surveillance
capabilities and will allow mutual clients to meet regulatory requirements more
effectively.</p><p>"eflow's
reputation for innovation aligns with TS Imagine's commitment to delivering
cutting-edge technology and solutions to our clients. This partnership bolsters
our ability to provide a wide range of surveillance and market abuse tools,
enabling clients to monitor their trading behavior throughout the day,” Alex
Carteau, the Head of Corporate Development at TS Imagine, said.</p><p>Komainu Adds Hidden Road
to Its Collateral Management Platform</p><p>Komainu, a
regulated digital asset custody service provider, announced that Hidden Road
has joined its collateral management platform, Komainu Connect. This addition
aims to enable the leverage of digital assets in collateralization scenarios
while keeping them in secure, regulated custody.</p><p>“Hidden
Road is a key addition to our expanding collateral management network,
representing another piece of the puzzle in bringing this much needed and
institutional grade offering to the digital asset marketplace,” Nicolas
Bertrand, the CEO at <a href="https://www.financemagnates.com/tag/komainu/" target="_blank" rel="follow">Komainu</a>, said.</p>

This article was written by Finance Magnates Staff at www.financemagnates.com.