The SEC Division of Examinations highlighted findings from its assessment of investment advisers’ preparedness for the cessation of LIBOR.
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An investment adviser settled SEC charges for breach of fiduciary duty in connection with its affiliates' receipt of third-party compensation related to the sale of shares in mutual funds.
The SEC staff issued a statement “in light of the now-certain transition away from LIBOR” reminding investment professionals of their obligations when recommending LIBOR-linked securities and related investment products and strategies, including interest rate swaps, municipal securities and securitizations.
At a Financial Stability Oversight Council meeting on June 11, 2021, Federal Reserve Board Vice Chair for Supervision Randal K. Quarles encouraged the move toward the Secured Overnight Financing Rate and warned banks that the use of USD LIBOR quotes available after December 2021 for new products would create safety-and-soundness risks.
A global provider of stock market indices settled SEC charges for the dissemination of stale index values due to an undisclosed quality control feature in one of its volatility-related indices.