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The SEC published a Risk Alert and FAQs reminding broker-dealers of their obligations when engaging in unregistered transactions on behalf of their customers. The Risk Alert identifies a number of deficiencies that the SEC staff observed regarding compliance to certain obligations related to sales of securities of microcap companies. These include: insufficient policies and procedures for monitoring customer-initiated sales to identify potential red flags; inadequate controls to evaluate how customers acquired securities and whether the securities could be lawfully resold without registration

Commentary by Siteadmin Administrator

In a letter addressed to SEC Chair Mary Jo White, a group of 44 senators expressed their support for a petition of rulemaking that would require public companies to disclose their political spending to shareholders pursuant to Section 14 of the Securities Exchange Act. The letter conveyed the senators' opinion that "because shareholders are the true owners of the corporation, a public company should be required to disclose to its owners how their money is being spent." The senators observed that the SEC has received "more than 1 million public comments" supporting the petition, including

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 Broker-Dealers and Financial Institutions") in the Consolidated FINRA Rulebook and (ii) delete incorporated NYSE Rules 407 ("Transactions - Employees of Members, Member Organizations and the Exchange") and 407A ("Disclosure of All Member Accounts"), as well as related Incorporated NYSE Rule

The SEC announced that it is seeking public comment on the effectiveness of financial disclosure requirements in Regulation S-X (which generally prescribes the requirements for financial reporting by SEC-registered issuers). The request for comment focuses on the requirements for the form and content of financial disclosures that companies must file with the SEC regarding acquired businesses, affiliated entities, and guarantors and issuers of guaranteed securities. The request for comment is part of the Disclosure Effectiveness Initiative, which is a broad-based SEC review of the disclosure