September 19, 2011

SEC Proposes Rule to Prohibit Conflicts of Interest in ABS Transactions

SEC voted to propose a rule intended to prohibit certain material conflicts of interest between those who package and sell asset-backed securities (ABS) and those who invest in them.

Continue reading...

September 19, 2011

Deputy Director of SEC Division of Trading and Markets to Leave SEC

SEC announced that James Brigagliano, a Deputy Director of the Division of Trading and Markets, will leave the SEC at the end of September after 25 years of public service.

Continue reading...

September 19, 2011

Labor Department to Repropose 401(k) Rule

The U.S. Department of Labor (Labor Department) withdrew its proposal to subject financial professionals to a higher standard of care when advising companies on their retirement plans.  The Labor Department, which has jurisdiction over retirement plans, said it will repropose the rule early next year. As currently written, the rule would have imposed a fiduciary standard that requires brokers and other advisers to put their clients' interests first as opposed to merely providing suitable advice. The pension plan proposal also would have forced big brokerage firms to decide whether to limit their brokers from working with corporate retirement plans. The Labor Department rule would not only limit brokers' ability to recommend their companies' own products to employers but prohibit them from collecting commissions from investment companies when employees purchase their funds or other retirement plan products without providing extensive disclosure.

Continue reading...

September 19, 2011

SEC to Host Roundtable About Microcap Securities

The SEC plans to hold a public roundtable to discuss microcap securities.  Microcap securities are low-priced stocks issued by companies with small capitalizations that trade primarily on the OTC Bulletin Board or OTC Quote (previously Pink Sheets).  The roundtable, to beheld on October 17, 2011 at the SEC’s Washington D.C.

Continue reading...

September 9, 2011

CFTC Continue to Struggle to Adopt Rules

CFTC Chairman Gary Gensler said in a meeting on September 8, 2011, that several major new rules for over-the-counter derivatives market will not be finalized until 2012, including rules on how much cash companies need to set aside to protect against losses on derivatives bets.

Continue reading...

September 7, 2011

SEC to Examine Connection Between ETFs and Market Volatility

U.S. securities regulators are looking into whether turbocharged exchange-traded funds (ETFs) amplified August's volatile swings in the stock market.

Continue reading...

September 7, 2011

SEC Chairman Issues Statement on Proxy Access Litigation

SEC Chairman Mary L. Schapiro confirmed that the SEC is not seeking rehearing of the decision by the U.S. Court of Appeals in Washington, D.C. vacating SEC Rule 14a-11, which would have required companies to include shareholders’ director nominees in company proxy materials in certain circumstances.  Nor will the SEC seek Supreme Court review.

Continue reading...

September 2, 2011

SEC Adopts Amendments to Form ID

SEC adopted a final rule to amend Form ID to include additional applicant types and corresponding definitions in order to improve the SEC’s internal procedures for processing filings, including by routing Form ID filings to the appropriate internal office or division.

Continue reading...

September 1, 2011

iShares Files Exemptive Application for Nontransparent Active ETF

iShares Trust, which is sponsored by BlackRock, filed an Exemptive application with the SEC seeking to offer an actively managed ETF that would disclose its portfolio securities on a quarterly instead of daily basis.  The ETFs would rely on a blind trust to deliver portfolio securities when redeemed for the benefit of the redeeming authorized participants without disclosing the securities’ identities to the authorized participants.  The application argues that real-time pricing would let authorized participants hedge trading exposures in shares and permit the efficient trading of shares without the need for daily portfolio disclosure.  Creation units would be created by the deposit of cash and be redeemed by distributing portfolio securities to the blind trust.  The blind trust would liquidate the securities as instructed by authorized participants.

Continue reading...

September 1, 2011

FSB to Scrutinize Shadow Banking System

The Financial Stability Board (FSB) said that it will focus on money-market funds, securitizations and securities lending and repos more as it tackles the problem of regulating the so-called “shadow banking system.”   The FSB has a mandate from the Group of 20 leading industrialized and emerging economies to draft recommendations on reforming the financial sector worldwide to avoid a recurrence of the 2008 financial crisis.

Continue reading...

Menu