In two newly released reports, SEC staff concluded that nationally recognized statistical rating organizations ("NRSROs") continue to promote compliance with SEC rules and staff examinations. This conclusion is based on the NRSROs' enhanced "policies, procedures, and internal controls." The SEC found that some NRSROs self-reported instances of noncompliance. SEC staff also noted that certain NRSROs were not adhering to their policies and procedures for: determining ratings; Rule 17g-7(a) information disclosures; "surveillance or withdrawals of outstanding ratings"; conflicts of interest, such

The SEC adopted final rules allowing reporting companies to use the Regulation A exemption from registration for their securities offerings. The final rules amend Securities Act Rule 251 to permit companies subject to the Exchange Act Section 13 or 15(d) reporting requirements to use the exemption provided by Regulation A. The final rules also revise Securities Act Rule 257 to provide that companies satisfying the reporting requirements of the Exchange Act have met the Regulation A reporting requirements. In addition, the SEC made other conforming changes to Regulation A and Form 1-A. The

The SEC proposed establishing "risk mitigation" requirements applicable to security-based swap dealers ("SBSDs"), including portfolio reconciliation and compression, and swap trading relationship documentation. In a proposal, the SEC noted that it "attempted to harmonize [its] proposal with the existing CFTC rules wherever possible." The proposing release provides explanations of the relevant differences between the rules. Proposed Rule 15Fi-3 would require SBSDs to engage in portfolio reconciliations. The rule is analogous to CFTC Rule 23.502. Proposed Rule 15Fi-4 would require SBSDs to

The National Futures Association ("NFA") reminded certain futures commission merchant ("FCM") and retail foreign exchange dealers ("RFED") that regulatory filings will be affected due to the Christmas and New Year's Day holidays. The NFA stated that any information filed after its due date by FCMs or RFEDs must be accompanied by a fee for every single business day that it is late.

A global investment banking and brokerage firm agreed to settle FINRA charges of selling IPO shares to "restricted persons." According to the Letter of Acceptance, Waiver, and Consent, the firm violated FINRA Rule 5130 by making over 1,400 prohibited sales of IPO shares in 325 offerings to 149 customer accounts where restricted persons had a "beneficial interest." FINRA stated that the firm allowed the "associated persons of broker-dealers and/or immediate family members of . . . financial advisors" ("FAs"), restricted persons normally prohibited from buying IPO shares, to receive shares due