The SEC adopted a final rule that will rescind Industry Guide 3 concerning the statistical disclosures that banking entities and bank holding companies provide in their registration statements. The new rule replaces Guide 3 with a new Subpart 1400 to Regulation S-K, the SEC's general regulation governing disclosure.
FINRA proposed amendments to the Security Futures Risk Disclosure Statement to reflect recent changes on position limits for security futures contracts, market-wide circuit breaker benchmarks and thresholds, and that exchanges may now list security futures on certain debt instruments.
SEC Division of Investment Management Director Dalia Blass said the Division will be making recommendations on outstanding proposals concerning (i) fund of funds arrangements, (ii) funds' use of derivatives, (iii) fund valuation practices and (iv) investment adviser solicitation and advertising. She also highlighted initiatives to enhance public access to private markets.
An investment adviser settled SEC charges for failing to disclose that: (i) the adviser's parent company paid a teachers' union-owned for-profit entity to promote the adviser's services to teachers; and (ii) the adviser received financial benefits as a direct result of investment recommendations that were more expensive than other options available to clients.
A broker-dealer settled FINRA charges for failing to (i) transmit required reportable order events to the Order Audit Trail System and (ii) include complete and accurate information in required quarterly reports.
A CFPB proposal to amend Regulation Z (implementing the Truth in Lending Act) to provide an exemption from establishing escrow accounts for higher-priced mortgage loans was published in the Federal Register.