The North American Securities Administrators Association highlighted its major regulatory undertakings during 2020 and outlined challenges faced by the investment adviser industry and state securities regulators as a result of the pandemic.
The CFTC Market Participants Division and Division of Market Oversight extended through September 30, 2021, COVID-19 related no-action relief to floor brokers from location, registration and real-time market monitoring requirements.
A firm settled FINRA charges for placing bids that were well under market value in response to bid-wanted auctions or requests for quotes in municipal securities, thereby failing to exercise its best judgment in determining the fair market value of the securities.
NFA set an effective date of June 30, 2021 for a recently adopted compliance rule and related interpretive notice requiring a CPO to notify NFA upon an event that may affect the ability of its pool to fulfill its obligations to pool participants.
The SEC Division of Examinations observed compliance deficiencies related to environmental, social and governance products and services offered by investment advisers, registered investment companies and pooled investment vehicles.
The Treasury Department Office of Financial Research, SEC staff and Federal Reserve Board staff updated the Financial Stability Oversight Council on pandemic and climate-related risks to the financial system.
A firm settled FINRA charges for failing to (i) properly designate personnel as either public side or private side, (ii) reasonably supervise communications between them and (iii) escalate communications that disclosed potential material nonpublic information.
SEC Director Peter Driscoll described the regulatory and operational challenges of delivering financial services during the pandemic, the issuance of alerts on pandemic and emergent risks (including on cybersecurity), and the roll out of Regulation Best Interest.