Financial Services Committee Chair Representative Maxine Waters (D-CA) introduced a bill to require that the SEC conduct a study on the operation of Rule 10b5-1 plans and modify Exchange Act Rule 10b5-1 in accordance with the results of the study. The bill was co-sponsored by Representative Patrick McHenry (R-NC). A Rule 10b5‐1 plan is a written plan for trading securities that is adopted by an insider to an issuer, or sometimes by an issuer, and which conforms to Rule 10b5‐1(c). Any person executing pre‐planned transactions pursuant to such a plan established in good faith at a time when that

FINRA reminded broker-dealers (i) that the SEC approved a supplement to the Options Disclosure Document ("ODD"), which contains disclosures regarding exchange-traded (or "standardized") options, and (ii) of requirements to distribute the ODD and the supplement to customers. The supplement amended the ODD to include disclosures regarding: foreign currency index options and implied volatility index options; changes to the procedure for making adjustments to the terms of standardized options contracts to address dividend distributions and other corporate events, and how adjustments to the terms

The Office of the Comptroller of the Currency reminded financial institutions of final rules that increase the asset threshold for insured depository institutions eligible for an extended 18-month on-site examination cycle. The final rules become effective on January 28, 2019. As previously covered, the final rules adopt without change the interim final rules that have been in place since August 29, 2018. The new rules were adopted to comply with the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.

IOSCO issued its recommended "good practices" for the "audit committees of listed companies in supporting and promoting external audit quality." In a report, IOSCO stated that the quality of a company's financial report is important to "market confidence and informed investors, and to the effective functioning of capital markets." IOSCO further said that the audit committee has an important role in maintaining the quality of the financial report. While the auditor has primary responsibility for audit quality, IOSCO advised, the audit committee must foster and support audit quality, which

FINRA fined a broker-dealer ("BD") and its vice president for failing to supervise the BD's president regarding the sale of securities in a series of private placements. According to the FINRA National Adjudicatory Council, Cantone Research, Inc. ("CRI") vice president Christine Cantone failed to properly review emails, maintain CRI's written supervisory procedures ("WSPs") and ensure that representatives under her supervision conducted adequate due diligence. Ms. Cantone was allegedly tasked with supervising CRI president Anthony Cantone, who is her husband. In her role, Ms. Cantone was