SEC Chair Jay Clayton, Division of Investment Management Director Dalia Blass, Division of Corporation Finance William Hinman and Division of Trading and Markets Brett Redfearn directed staff "to review the effectiveness of the existing regulatory requirements in protecting investors ... who invest in leveraged/inverse products and other complex products."
The SEC proposed replacing an exemption for certain clearing agencies and dual registrant broker-dealers concerning the portfolio margining of swaps and security-based swaps that are cleared credit default swaps.
CFTC Chair Heath Tarbert and SEC Chair Jay Clayton established a one-year pilot program to enhance coordination among agency staff on CFTC enforcement actions that may trigger "bad actor disqualification" provisions under SEC rules.
The SEC adopted amendments that impose additional conditions on the ability of a broker-dealer to publish a quotation for securities that are not listed on a national securities exchange. The amendments were published in the Federal Register.
A school for day trading securities settled SEC charges for (i) offering security-based swaps to non-eligible contract participants and (ii) failing to effect the transactions on a registered national securities exchange.
In a "Dear CFO Letter," SEC Division of Investment Management Chief Accountant Alison Staloch highlighted staff guidance on "certain accounting, auditing, financial reporting, or other related disclosure matters."
In response to the SEC Division of Investment Management's smaller funds outreach initiative, Director Dalia Blass stated that the Division is reviewing Advisors Act advertising and cash solicitation rules, Investment Company Act custody rules, and multiple challenges concerning the proxy process.
An investment firm was fined $2.9 billion by several authorities for its failure to (i) properly oversee its operations, (i) maintain internal controls and (iii) conduct proper risk management, with regard to its employees' involvement in improper payments to foreign officials.
SEC Commissioner Hester Peirce urged the SEC to (i) more carefully analyze the definitions of the terms "facility" and "exchange" in the Exchange Act, (ii) develop related guidance and (iii) solicit public comment on current guidance.
An SEC final rule rescinding Industry Guide 3 concerning statistical disclosures that banking entities and bank holding companies provide in their registration statements, was published in the Federal Register.
The SEC proposed to establish a new limited and conditional exemption from the broker registration requirements for natural persons engaging in certain limited capital-raising activities on behalf of issuers seeking to raise funds from accredited investors.