Industry associations warned the SEC that its proposal on incentive-based compensation arrangements imposes restraints that exceed Dodd-Frank Act rules intended to discourage inappropriate risk-taking at Covered Financial Institutions.
A recent post on SIFMA's "Pennsylvania + Wall" blog is highly critical of a recently published academic report. SIFMA argues that the report makes "overly broad and inflated claims" concerning levels of misconduct among financial advisors.
SIFMA expressed support for the Senior$afe Act of 2015. In a letter to Senators Susan Collins (R-ME) and Claire McCaskill (D-MO), SIFMA stated that the act would prevent financial exploitation and "better protect firms and advisors who are looking out for the best interest of their elder clients".
SIFMA proposed a set of "overarching principles" that should guide future revisions and re-proposals regarding incentive-based compensation arrangements at covered financial institutions. In a comment letter, SIFMA stated that the responsibility for promulgating these revisions and re-proposals would fall on the Office of the Comptroller of the Currency, the Federal Reserve, the FDIC, the National Credit Union Administration, the SEC and the Federal Housing Finance Agency (collectively, the "Agencies") pursuant to Dodd-Frank Act Section 956 ("Enhanced Compensation Structure Reporting"). The comment letter focused on three principles for any re-proposal: i) that the cost and benefits be considered; ii) that provisions should not be vague; and iii) that it does not confer general authority to re-design compensation arrangements.
SIFMA filed an amicus curiae brief with the U.S. Supreme Court in Merrill Lynch, Pierce, Fenner & Smith, Inc., et al. v. Manning . The case presents the question of whether claims that are based on state law but that relate to violations of the Exchange Act must be heard in federal court. The...
SIFMA asked FINRA to reduce the burdens of compliance with a proposed reporting rule concerning employee accounts, and move toward a system based on principles instead of rigid requirements. Specifically, SIFMA recommended changes in FINRA's proposal to (i) adopt FINRA Rule 3210 ("Accounts at Other...
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