A broker-dealer agreed to settle SEC charges for improper practices relating to securities lending transactions involving pre-released American Depositary Receipts ("ADRs"). According to the SEC's Order, Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill") improperly borrowed pre-released ADRs from brokers who had borrowed the shares from ADR depositaries but did not own the necessary foreign shares to support the ADRs. The Order found that Merrill should have known that those brokers did not own the necessary shares. The SEC stated that the practices led to an inflation of the total

The U.S. Treasury Department ("Treasury") Office of Foreign Assets Control ("OFAC"), along with the U.S. State Department, designated 14 individuals and 17 entities allegedly connected to Iran's Organization of Defense Innovation and Research, which played a central role in Iran's nuclear weapons efforts. As a result of OFAC's action, all property and interests in property of these targets in the U.S. or within the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC's regulations generally forbid all dealings by U.S. persons or in the U.S. that concern property or

The SEC adopted amendments to Regulation S-K, and related rules and forms, that are intended to reduce disclosure burdens on registrants. The amendments, among other things: permit registrants to omit confidential information from material contracts and certain other exhibits without submitting a request to the SEC; modify and modernize rules and forms to streamline the SEC's disclosure framework; amend the description of property requirement to stress the "materiality threshold"; and enhance access to information by obligating data tagging for certain items on the cover pages of particular

The U.S. Treasury Department ("Treasury") Office of Foreign Assets Control ("OFAC") designated two shipping companies based in China for allegedly helping North Korea evade U.S. sanctions. In a related action, OFAC, the U.S. State Department and U.S. Coast Guard updated their North Korean shipping advisory by adding vessels that have allegedly engaged in "ship-to-ship" transfers with North Korea tankers of North Korean exported coal. The updated advisory also includes new information on North Korea's deceptive shipping practices and provides guidance on how to alleviate the risk of involvement

SEC Deputy Director and Chief Counsel for the Division of Investment Management (the "Division") Paul Cellupica detailed the work of the Chief Counsel's Office (the "Office"). In remarks at the PLI Investment Management Institute, Mr. Cellupica stated that the Office advises primarily on the Investment Company Act of 1940 and the Investment Advisers Act of 1940. In addition, the Office assists market participants and the public. Mr. Cellupica offered "tips for engagement on exemptive applications and requests for no-action relief." He noted that: exemptive orders and no-action letters fall