Just days before the July 1 implementation date for FATCA, two countries, Saudi Arabia and China, reached agreements "in substance" with the United States with respect to an Intergovernmental Agreement ("IGA") to implement FATCA. Both countries agreed to a Model 1 type of agreement under which Chinese and Saudi financial institutions will be required to report information about accounts held directly or indirectly by U.S. persons to their respective home taxing authority, which will forward such information on to the U.S. IRS. It is unclear whether such agreements are reciprocal. Dominica

The SEC Division of Investment Management issued guidance to address how Advisers Act Rule 206(4)-2 ("The Custody Rule") applies when advisers to pooled investment vehicles utilize either special purpose vehicles when making investments ("Investment SPVs"), or escrow accounts when selling interests in portfolio companies. According to the SEC, inquiries regarding Investment SPVs commonly are focused on how the SEC's guidance applies to an investment adviser to pooled investment vehicles that rely on the audit provision. Inquiries regarding Escrow accounts commonly are focused on a circumstance

The SEC Division of Investment Management issued guidance relating to the enhanced mutual fund disclosure amendments that were adopted in 2009. After finding that mutual fund prospectuses were too long and contained too much complex language, in 2009, the SEC amended Form N-1A, the registration form used by mutual funds, and Securities Act Rule 498 ("Summary Prospectuses for Open-End Management Investment Companies"). The amended Rule 498 provided a new option for satisfying prospectus delivery obligations with respect to mutual fund securities. According to the guidance, the amendments

The U.S. Senate Committee on Appropriations issued its FY 2015 Financial Services and General Government Appropriations bill. This bill includes a budgetary increase for the SEC from $1.35 billion to $1.7 billion, and a CFTC increase from $215 million to $280 million. Separately on June 17, the House of Representatives released its proposed budget for both regulators, which contained a $50 million increase for the SEC (rather than the $350 million that would be provided by the Senate) and a $2.6 million increase for the CFTC (rather than $65 million). See : Senate Appropriations Committee FY

The House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises held a hearing titled "Oversight of the SEC's Division of Trading and Markets." The sole witness was the Division of Trading and Markets' (the "Division") Director, Stephen Luparello, who provided an overview of the activities at the Division. C lick here to view a summary of the hearing provided by Delta Strategy Group. See: Subcommittee Chairman Garrett's Statement; Director Luparello's Written Remarks; Archived Webcast of Hearing.