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xrptriton

SEC Regulations on Financial Services companies

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Hey fellow zerpers,

I work for a Financial Services company in the US. The other day I received a company wide email stating that because of a recent SEC ruling, everyone in the company is now required to disclose all of their crypto currency holdings. I was shocked and I have no idea what SEC ruling my company is talking about. Does anyone here have any idea what this SEC ruling might be? I post this here because I am wondering if somehow that is a prerequisite to financial services companies officially entering the crypto markets. Or if it has anything to do with the ETFs the SEC will be ruling on soon. I am very confused. Any theories will help my understanding! Thanks!!

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I'm in the UK and work in financial services. There's no way I'd be asked to disclose private assets, savings, shares, funds, property etc

It's possible for the company to run a credit check on me to see I'm in financial difficulty as that can make someone a liability when handling customer finances, but that's all. 

Obviously the US is somewhat different to us here but I'd be amazed if they could enforce it. It would be interesting to see the wording of the original email.

Edited by Badger

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My guess is that they are going to share you information that will influence the market price. 

And they will try to avoid employees of taking advantage....

I don't have any knowledge on the US laws so can't advise you  (for suer I wouldn't share my private holdings.)

Please keep us updated ?

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2 hours ago, Badger said:

I'm in the UK and work in financial services. There's no way I'd be asked to disclose private assets, savings, shares, funds, property etc

It's possible for the company to run a credit check on me to see I'm in financial difficulty as that can make someone a liability when handling customer finances, but that's all. 

Obviously the US is somewhat different to us here but I'd be amazed if they could enforce it. It would be interesting to see the wording of the original email.

This is the actual text:

Associates will receive a mandatory questionnaire requiring the disclosure of any cryptocurrency accounts/holdings. While you will not be required to provide statements or balance/position screen shots at this time, that may change in the future. Also, Compliance may require disclosure of balance/position information in certain circumstances

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56 minutes ago, ___JH___ said:

My guess is that they are going to share you information that will influence the market price. 

And they will try to avoid employees of taking advantage....

I don't have any knowledge on the US laws so can't advise you  (for suer I wouldn't share my private holdings.)

Please keep us updated ?

Would second that, they are recognizing the upside of whatever system your company is going to adopt. 

TFH on, is this being sent out to all employees of pending xrapid customers???

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1 hour ago, ___JH___ said:

My guess is that they are going to share you information that will influence the market price. 

And they will try to avoid employees of taking advantage....

^^ This, with a healthy dose of liability added on top.  The company is trying to steer of insider trading laws, thus the request for employee crypto holdings.  Chances are that the company will be starting to make some moves that will have the ability to fundamentally impact the price of some particular crypto asset.  At least some portion of company's employees will need to have knowledge of such moves and/or will be involved in the execution phase, which will automatically mean that they will have access to what is considered material non-public information.

Access to material non-public information + active trading of such asset = insider trading as per SEC guidelines.

@xrptriton I would recommend fully complying with the request and furthermore informing your legal/compliance dept if you actively trade other cryptos to see how you should proceed (as your trades may need to be logged or reported in order to ensure compliance with SEC guidelines).

If you are a hodler and are already sitting on a full stash then this should be a non-event.  If you actively trade multiple cryptos then it could get a bit messy (but that's for your legal/compliance to figure out, so no worries).

Lastly, depending on the exact material information in question, you may need to stop posting on public sites such as xrp chat as you may inadvertently leak non-public information and find yourself in hot water.

If any of this sounds scary, it shouldn't be - you are totally fine with everything you have done thus far.  However, definitely talk to your company's compliance department, explain the situation (your trading habits etc), and consult with them on the proper approach moving forward so that both you and your company are covered from an insider trading perspective.

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Funny how we believe and take seriously these kind of stories that have a positive twist to it, but make fun of and completely disregard 'personal stories' (recent SWIFT story on this forum) that may have a negative connotation towards XRP/Ripple. Just an obversation :)

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2 hours ago, automatic said:

^^ This, with a healthy dose of liability added on top.  The company is trying to steer of insider trading laws, thus the request for employee crypto holdings.  Chances are that the company will be starting to make some moves that will have the ability to fundamentally impact the price of some particular crypto asset.  At least some portion of company's employees will need to have knowledge of such moves and/or will be involved in the execution phase, which will automatically mean that they will have access to what is considered material non-public information.

Access to material non-public information + active trading of such asset = insider trading as per SEC guidelines.

@xrptriton I would recommend fully complying with the request and furthermore informing your legal/compliance dept if you actively trade other cryptos to see how you should proceed (as your trades may need to be logged or reported in order to ensure compliance with SEC guidelines).

If you are a hodler and are already sitting on a full stash then this should be a non-event.  If you actively trade multiple cryptos then it could get a bit messy (but that's for your legal/compliance to figure out, so no worries).

Lastly, depending on the exact material information in question, you may need to stop posting on public sites such as xrp chat as you may inadvertently leak non-public information and find yourself in hot water.

If any of this sounds scary, it shouldn't be - you are totally fine with everything you have done thus far.  However, definitely talk to your company's compliance department, explain the situation (your trading habits etc), and consult with them on the proper approach moving forward so that both you and your company are covered from an insider trading perspective.

Thank you for your response. All of this makes sense to me and I will definitely inquire within my company. 

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40 minutes ago, XRP-JAG said:

Article seems to cover it.

@xrptriton have you been asked before about securities you trade?

Not the securities I trade but for compliance reasons we are not allowed to trade securities in accounts outside of the institution.

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6 hours ago, ___JH___ said:

My guess is that they are going to share you information that will influence the market price. 

And they will try to avoid employees of taking advantage....

I don't have any knowledge on the US laws so can't advise you  (for suer I wouldn't share my private holdings.)

Please keep us updated ?

I didn't think of that scenario. That sounds most probable compared to an authoritarian intrusion into OP's private life.

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