August 25, 2016

FINRA Seeks Comment on Proposed Amendments to Its Gifts, Gratuities and Non-Cash Compensation Rules

FINRA has issued Regulatory Notice 16-29 (the “Notice”) seeking comment on proposed amendments to FINRA Rule 3220 (Influencing or Rewarding Employees of Others), as well as the adoption of proposed FINRA Rule 3221 (Restrictions on Non-Cash Compensation) and FINRA Rule 3222 (Business Entertainment). Comments are due by September 23, 2016. The proposed rule amendments are the result of FINRA’s retrospective review, completed in 2014, of its existing rules to assess their effectiveness and efficiency. The Notice states that FINRA’s published report on its review concluded that the rules “could benefit from some updating to better align the investor protection benefits and the economic impacts.”

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July 28, 2016

FINRA Proposes Rule Changes Affecting Filing Requirements for Investment Company Advertisements and Sales Literature

FINRA has filed proposed rule changes to FINRA Rule 2210 and FINRA Rule 2214 governing member communications with the public, with the SEC.  The proposed rule changes are intended to enhance the efficiency of the rules without a reduction in investor protection.

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June 29, 2016

SEC Issues Updated Guidance on Business Continuity Planning for Registered Investment Companies

In a guidance update issued on June 28, 2016, the staff of the Division of Investment Management (the “Division”) of the Securities and Exchange Commission outlined certain issues that fund complexes should consider when formulating business continuity plans (“BCPs”) as they relate to critical service providers. The Division stressed that Fund complexes increasingly rely on affiliates and third parties to perform critical functions, and thus need to understand the business continuity and disaster recovery protocols of such service providers. Additionally, fund complexes should determine how their own BCPs address the risk that a critical service provider could suffer a significant business disruption.

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June 27, 2016

SEC Chair Testifies before Congress on Upcoming Asset Management Rules

Testifying before the U.S. Senate Committee on Banking, Housing, and Urban Affairs (the “Committee”) on June 14, 2016, Securities and Exchange Commission (“SEC”) Chair Mary Jo White spoke to the “Oversight of the [SEC]” and the current work and initiatives underway at the agency, providing insight into the timing of major regulatory initiatives affecting the investment management industry.

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May 26, 2016

FinCEN Issues Final Customer Due Diligence Rules

On May 11, 2016, the Financial Crimes Enforcement Network ("FinCEN") issued final rules under the Bank Secrecy Act that will require financial institutions (including mutual funds) (i) to adopt anti-money laundering (AML) programs containing four core requirements for customer due diligence and (ii) to identify beneficial owners of "legal entity customers."

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March 2, 2016

Investment Management Issues Guidance Concerning Fund Disclosures Regarding Current Market Conditions

In a Guidance Update, Staff of the SEC’s Division of Investment Management set out steps funds should take on an ongoing basis to provide investors with risk disclosures that remain robust in changing market conditions.  Funds should monitor market conditions and their impact on fund risks to determine if changing…

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February 23, 2016

SEC Extends Comment Period With Respect to Proposed Revisions to Transfer Agent Rules

On February 18, 2016, the SEC issued Exchange Act Release No. 34-77172 (the "Extension"), which extends the comment period for the Transfer Agent Release.  The SEC is extending the public comment period for 45 days, from February 29 to April 14, 2016.  The SEC believes this extension is appropriate in…

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February 10, 2016

SEC Seeks Comment on Proposed Revisions to Transfer Agent Rules

On December 22, 2015, the Securities and Exchange Commission (the "SEC") issued Exchange Act Release No. 34-76743 (the "Release"), which contains an Advance Notice of Proposed Rulemaking providing public notice that the SEC is considering new and amended rules governing transfer agents. The Release also contains a Concept Release addressing other aspects of transfer agent regulation.

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December 11, 2015

SEC Proposes New Derivatives Rules for Registered Funds and Business Development Companies

The Securities and Exchange Commission voted to propose a new rule designed to enhance the regulation of the use of derivatives by registered investment companies, including mutual funds, exchange-traded funds (ETFs) and closed-end funds, as well as business development companies. The proposed rule would limit funds’ use of derivatives and require them to put risk management measures in place which would result in better investor protections.

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May 8, 2015

SEC Names David Grim as the New Director of the Division of Investment Management

The SEC named David Grim as the Director of its Division of Investment Management.  Mr. Grim has been the Division’s acting director since February, 2015, following the departure of former Director Norm Champ.

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