S2:E4 | What's New at the NFA? | Compliance In Context

The Securities Compliance Podcast: Compliance In Context

Welcome back to the Compliance In Context Podcast! On today’s show, we have the distinct pleasure of chatting with Patty Cushing, Director of Compliance at the NFA, for an insider’s look at the examination process with the NFA, new areas of focus for the SRO, ideas around remote supervision, and much more. In our Headlines section, we do a deep dive into the recent buzz and regulatory activity surrounding cryptoassets, and finally, we’ll wrap up today’s show with another installment of the What’s On My Mind segment, where we look at the impact of gamification on the investment industry and the potential for new regulation.

Strap in for another informative and exciting episode!

Topics:

Headlines

• Timeline of regulatory activity surrounding crypto and digital assets
• Views from SEC Chair Gensler
• Identifying the risks and opportunities in crypto
• El Salvador becomes the first country in the world to adopt Bitcoin as legal tender

Interview

• Background and mission of the NFA.
• The NFA examination process.
• The importance of educating member-firms.
• New NFA initiatives for 2021.
• Trends in enforcement
• How the NFA adjusted to COVID-19 work restrictions.
• Thoughts on remote supervision

What’s on My Mind

• Reviewing the issue of Gamification and its impact on the market
• Finding the balance between investor protections versus overregulation

Quotes:

“Our mission is officially to safeguard the integrity of the derivatives markets by and protect investors and ensure that our Members are meeting their regulatory responsibilities”

“It really has been a focus my entire career and it started from the top, I mean our Presidents and CEOs say to us, you know, one of our functions is education, and that includes Member education. If our if our mission is to safeguard the integrity of the derivatives markets and protect customers, the best way to do that is to have Member firms who are in compliance with the rules and regulations. Most Members want to do the right thing and so it's our job to make sure they understand what the rules and regulations require and if they do it. But it's also our job for those firms who don't want to follow the regulations that we identify them quickly and get them disciplined.”

“We’ve been successfully doing our jobs remotely and these inspections have been going well remotely. So, do we have to go back to what things were like pre-pandemic?”

Resources:

Compliance in Context