The SEC proposed rules requiring the adoption of liquidity risk management programs by SEC-registered, open-end investment companies. Under the Proposed Rule 22e-4, mutual funds and exchange-traded funds ("ETFs") would be required to implement liquidity risk management programs and to improve their disclosures as to fund liquidity and redemption practices. A fund's liquidity risk management program would be required to, among other things: (i) classify the liquidity of fund portfolio assets based on the amount of time an asset would be able to be converted to cash without a market impact; (ii)

An investment adviser agreed to settle charges with the SEC that the adviser violated Regulation S-P by failing to establish cybersecurity policies and procedures. The adviser was the victim of a security breach by a hacker who obtained the personally identifiable information ("PII") of approximately 100,000 individuals, including thousands of the adviser's clients. The SEC found that the investment adviser violated the so-called "safeguards rule" during a nearly four-year period when it failed to adopt any written policies and procedures to ensure the security and confidentiality of PII and

The CFTC proposed a supplement to its position limits proposal that would modify the CFTC policy for aggregation under the proposed Part 150 proposed regulations. The supplement would revise how the CFTC would address situations when aggregation is required on the basis of 50 percent or more common ownership. Under the initial aggregation proposal, owners of a greater than 50 percent interest would have to provide specified information and certifications in an application to the CFTC and wait for its approval before disaggregating an affiliate's positions. Under the proposed supplement, firms

The Office of Foreign Assets Control ("OFAC") published amendments to the Cuban Assets Control Regulations ("CACR") and issued an updated list of Frequently Asked Questions ("FAQs"). OFAC's action is in furtherance of the policy shift announced by President Obama in December 2014 and designed to "engage and empower the Cuban people." OFAC published an initial round of CACR amendments that, among other things: (i) facilitated certain travel to Cuba; (ii) relaxed restrictions on authorized remittances and (iii) permitted certain activities related to telecommunications, financial services

The use of a "firm or forced trades" process to determine the price of certain swaps for which public market prices are not available will not, by itself, require a derivatives clearing organization ("DCO") to register as a swap execution facility. This CFTC interpretative guidance expresses the views of the Division of Clearing and Risk and Division of Market Oversight. CFTC Letter No. 15-51 also states that a swap generated as a result of such a process would not be subject to the clearing and trade execution requirements of the Commodity Exchange Act. The DCO would be the reporting