GRC Report Staff

FINRA has filed a proposed amendment to Rule 4522(b)(1) that would except uncertificated investments in unregistered investment funds from the monthly position statement and reconciliation requirement, replacing it with a quarterly cadence. The change codifies and broadens the relief in a January 2026 SEC staff no-action letter that covered only capital balance funds. Carrying and clearing firms that custody private fund interests should assess how the exception affects their reconciliation procedures, while remembering that SEA Rule 17a-13 quarterly counts and the "prudent business practice" standard still apply.

The Norway Financial Supervisory Authority has posted a warning that originates from Luxembourg's CSSF. It concerns fraudulent actors misusing the name of Luxempart S.A., a Luxembourg-based issuer. Compliance teams should treat it as an impersonation-fraud alert and check their onboarding, payment, and client-communication controls for exposure.

The Norway Financial Supervisory Authority has published a warning about MelzaPlay S.A., an entity identified as a Luxembourg issuer, and it references a CSSF warning about the website www.melzapay.com. The notice indicates that the entity or its website may be offering financial services without proper authorization. Compliance teams should screen for exposure and strengthen controls against potential fraud and unauthorized activity.

The Norway Financial Supervisory Authority (Finanstilsynet) has relayed a warning, originally issued by the UK Financial Conduct Authority (FCA), about a clone of the FCA-authorized firm Quanta North. Clone firms use a legitimate firm's name and credentials to defraud consumers, so compliance teams should update screening and fraud controls and brief customer-facing staff.

The Norway Financial Supervisory Authority (Finanstilsynet) has listed "9M AI" in its warnings, citing a UK Financial Conduct Authority (FCA) warning as the source. Compliance teams should treat the entity and its associated names and domains as a potential unauthorized or fraudulent actor and screen for any exposure.

The Norway Financial Supervisory Authority (Finanstilsynet) has published a warning, originating from the UK Financial Conduct Authority (FCA), about a clone firm impersonating the FCA-authorized insurer Gate Insure. Compliance teams should treat the entity as fraudulent, update screening controls, and reinforce customer and counterparty verification procedures.

APRA has imposed license conditions, a higher minimum liquidity requirement, and an AUD $50 Million operational risk capital add-on on ING Bank Australia Limited after the bank disclosed multi-year miscalculations that overstated its Liquidity Coverage Ratio (LCR). Reported LCR was around 160 percent, but the true figure was substantially lower and at times fell below the 100 percent minimum under APS 210. The action shows that APRA treats inaccurate prudential reporting as a governance and risk management failure, not a technical error.