Compliance & Ethics

First Trust Portfolios has agreed to pay a $10 million fine and accept a censure after the Financial Industry Regulatory Authority (FINRA) found the firm provided lavish gifts and entertainment to broker-dealer representatives in violation of longstanding limits on non-cash compensation tied to investment product sales. The settlement is outlined in a Letter of Acceptance, Waiver and Consent (AWC) that First Trust submitted without admitting or denying the findings.

Germany’s financial watchdog has fined J.P. Morgan €45 million after identifying widespread failures in the bank’s processes for reporting suspicious transactions, according to a notice from the Federal Financial Supervisory Authority (BaFin).

The Italian Competition Authority has fined Man Project €300,000 for what it determined to be an unfair commercial practice involving the sale of clothing items under the Coveri Tailor brand. According to the Authority, the company misled consumers by presenting garments as discounted items from earlier or higher-priced collections, when in fact the products had never been sold in traditional retail stores.

India’s National Stock Exchange (NSE) has set aside nearly $148 million (₹13 billion) to resolve regulatory cases pending with the Securities and Exchange Board of India (SEBI), according to a Reuters report. The move signals a potential breakthrough in the exchange’s years-long effort to move ahead with a long-delayed initial public offering.

The Securities and Exchange Commission (SEC) has granted temporary exemptive relief extending compliance deadlines for several amended provisions under Regulation NMS, citing recent legal developments and market readiness concerns.

Ben & Jerry’s is an activist brand. It operates under a unique mission-driven board configuration that sets it apart from most subsidiaries of large corporations. Although owned by Unilever, the company maintains a semi-independent board specifically tasked with safeguarding its social mission, which includes environmental sustainability, human rights, and ethical business practices. This hybrid governance model combines traditional corporate oversight with dedicated representatives who ensure that Ben & Jerry’s activism and ethical commitments remain central to its decision-making. The board includes independent directors, Unilever representatives, employee voices, and social mission advocates, creating a structure designed to balance profitability with purpose, a rare approach in the corporate world.

The Dutch Authority for the Financial Markets (AFM) has fined Forvis Mazars Accountants €446,000 for failing to prevent or detect widespread exam fraud within the firm, a breach that the regulator says strikes at the very credibility of the audit profession.