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Covering Joint Statement, SEC, CFTC, Plan of Distribution, Money Laundering. Explore key regulatory developments including SEC and CFTC enforcement actions, a detailed Plan of Distribution for recovered funds, joint statements on novel ETFs, and major money laundering investigations impacting financial markets.
Regulatory news, updates, and insights for USA presented by the Carver Agents team
Welcome to Carver's USA Regulatory Updates for July 05, 2026.
The United States Securities and Exchange Commission, or S-E-C, has issued a request for public comment on the regulatory framework for novel exchange-traded funds, or ETFs. The S-E-C is seeking input on whether these novel ETFs meet the Investment Company Act’s subjective and objective tests, the applicability and potential amendments to rule 6c-11, and portfolio-related conditions affecting arbitrage mechanisms, investor protection, market surveillance, and structural or operational issues.
In enforcement actions, Merrill Lynch, Pierce, Fenner & Smith Incorporated failed to file numerous Suspicious Activity Reports, or SARs, between April 8, 2020, and September 10, 2024. This failure was due to reliance on Bank of America's Bank Secrecy Act and Anti-Money Laundering program and a risk score threshold that excluded certain suspicious event groups from investigation. The S-E-C has ordered Merrill Lynch to cease and desist from violations of Exchange Act Section 17(a) and Rule 17a-8, pay a civil money penalty within 14 days, and implement remedial measures including lowering risk score thresholds and conducting retrospective SAR reviews.
The Commodity Futures Trading Commission, or C-F-T-C, has ordered two foreign firms, Netrios LP Ltd. and Red Acre Ltd., to pay civil monetary penalties for illegal off-exchange retail commodity transactions with U-S customers who were not eligible contract participants. Netrios LP Ltd. must pay a civil monetary penalty, and Red Acre Ltd. must pay a civil monetary penalty. Both firms are required to cease unlawful conduct.
Additionally, the S-E-C has ordered Netrios LP Ltd. and Red Acre Ltd. to cease and desist violations of Securities Act Section 5(e) and Exchange Act Section 6(l). These violations involved unregistered security-based swaps offered via white-label brokers. Netrios LP Ltd. must pay a civil money penalty within 10 days, and Red Acre Ltd. must pay a civil money penalty.
The S-E-C has also instituted administrative and cease-and-desist proceedings against Wedbush Securities Inc. for willful violations of recordkeeping and reporting requirements under the Exchange Act. The violations relate to deficient Electronic Blue Sheets submissions from March 2018 through December 2023. Wedbush Securities must cease and desist from future violations of Section 17(a)(1) of the Exchange Act and Rules 17a-4(j) and 17a-25, pay a civil money penalty within 10 days, and resubmit corrected EBS data. The firm is also required to implement new written supervisory procedures for EBS reporting.
In a significant criminal case, six defendants, including former National Basketball Association players and a current player agent, have been charged with wire fraud conspiracy, bribery in sporting contests, honest services wire fraud conspiracy, and money laundering conspiracy. These charges relate to manipulating NBA game performances to place fraudulent wagers.
The United States Food and Drug Administration, or F-D-A, has updated its guidance on blood donor eligibility, donor deferral, and blood product management in response to Ebola virus. Ebola disease is now classified as a transfusion-transmitted infection under 21 C-F-R 630.3(l). The updated guidance applies to all Orthoebolaviruses causing Ebola disease in humans. Blood donor eligibility must be assessed with respect to Ebola virus exposure and infection risk, donor deferral policies implemented during outbreaks, and blood products managed to prevent transfusion-transmitted Ebola virus infection.
The Federal Trade Commission, or F-T-C, has required Amazon to pay a civil penalty to resolve charges that it knowingly violated the Fair Credit Reporting Act. Amazon must comply with Section 609(e) by providing requested records to identity theft victims and law enforcement within 30 days, notify consumers about their rights, and contact consumers who previously requested but did not receive records. The company must also establish and maintain written policies to comply with Section 609(e).
Finally, the S-E-C Division of Enforcement has approved and ordered the transfer of funds from the Fair Fund to an escrow account at Huntington Bank for distribution to eligible investors. This follows a comment period with no objections and finalizes the distribution process of recovered funds related to Fluor Corporation, Jon Eric Best, James F. Brittain, Robin K. Chopra, Bradley R. Scott, and Kent N. Smith. The distribution will proceed according to the approved Plan of Distribution, including processing and notification of claims.
That wraps up today's regulatory updates. Visit carveragents.ai for more information.