On August 10, 2023, the Securities Industry and Financial Markets Association (“SIFMA”) – a leading Wall Street industry association – filed suit to enjoin new Missouri regulations requiring investment advisors (“IA’s”) and...more
8/15/2023
/ Broker-Dealer ,
Capital Markets ,
Employee Retirement Income Security Act (ERISA) ,
Environmental Social & Governance (ESG) ,
Financial Services Industry ,
First Amendment ,
Investment ,
Investment Adviser ,
Investment Management ,
NSMIA ,
Preemption ,
Securities Regulation ,
SIFMA ,
State Regulators
On June 20, 2023, the Supreme Court granted certiorari to review three questions about the Securities and Exchange Commission’s (SEC’s) administrative courts...more
7/6/2023
/ Administrative Law Judge (ALJ) ,
Appointments Clause ,
Article II ,
Certiorari ,
Disgorgement ,
Enforcement Actions ,
Investment Adviser ,
Investment Funds ,
Public Rights Doctrine ,
SCOTUS ,
Securities and Exchange Commission (SEC)
On February 9, the SEC proposed new cybersecurity risk management regulations for investment advisers, registered investment companies (funds), and business development companies....more
2/14/2022
/ Anti-Fraud Provisions ,
Business Development Companies ,
Comment Period ,
Cybersecurity ,
Data Protection ,
Disclosure Requirements ,
Fiduciary Duty ,
Identity Theft ,
Investment Adviser ,
Investor Protection ,
Policies and Procedures ,
Proposed Rules ,
Registered Investment Companies (RICs) ,
Regulatory Agenda ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Securities Regulation
The SEC recently announced the creation of the Event and Emerging Risks Examination Team (“EERT”) in its Office of Compliance Inspections and Examinations (“OCIE”). ...more
Effective June 30, SEC Reg. BI requires broker-dealers to make recommendations only in the “best interests” of retail customers, imposing additional disclosure, care, conflicts-of-interest and compliance obligations....more
On April 2, Chair Clayton said the SEC would hold firm on the June 30 compliance deadline for Regulation Best Interest (“Reg. BI”) and Form CRS, but suggested early examinations might focus more on compliance efforts than...more
It was the Ides of March for the Obama Administration’s “fiduciary duty rule” that sought to remake much of nation’s financial markets by back-door regulation of anyone dealing with IRA investors. The US Fifth Circuit...more
3/20/2018
/ Best Interest Contract Exemptions ,
Conflicts of Interest ,
Consumer Financial Products ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Financial Services Industry ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Investment Management ,
Regulatory Oversight ,
Retirement Plan ,
Vacated
After several years of examination focus and a series of enforcement actions, the SEC’s Enforcement Division on February 12 announced a “Share Class Selection Disclosure Initiative” in an attempt to level-set industry...more
The Department of Labor has received OMB certification, and sought expedited notice-and-comment, for a rule change that would postpone the full implementation deadline for its Fiduciary Rule from January 1, 2018 until July 1,...more
9/1/2017
/ Best Interest Contract Exemptions ,
Conflicts of Interest ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Investment Adviser ,
Investment Management ,
OMB ,
Retirement Plan
Last week Labor Secretary Acosta chose a Wall Street Journal op-ed to announce DOL’s decision not to delay the “fiduciary rule” past the once-extended June 9 effective date....more
On June 1, new SEC Chair Clayton returned the SEC to the arena in the policy debate surrounding the DOL’s Fiduciary Rule. Clayton’s public statement responded to a direct invitation for SEC participation by DOL Secretary...more
6/2/2017
/ Best Interest Contract Exemptions ,
Comment Period ,
Conflicts of Interest ,
Department of Labor (DOL) ,
Dodd-Frank ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Financial Institutions ,
Investment Adviser ,
Retirement Plan ,
Securities and Exchange Commission (SEC)
Finally, there’s voice of reason entering the policy harangue over the Department of Labor’s Fiduciary Rule … even if it’s coming through an unusual outlet. In a May 23 Wall Street Journal opinion piece, new Labor Secretary...more
The Department of Labor yesterday adopted a rule delaying the April 10 effective date of its “Fiduciary Rule” for 60 days. The delay gives Labor time to complete the re-study mandated by Trump’s February executive order....more
The IRS released guidance this week announcing that it will not apply IRC § 4975 excise taxes (15% on prohibited transactions) and related reporting requirements “with respect to any transaction or agreement to which the...more
3/29/2017
/ Department of Labor (DOL) ,
Excise Tax ,
Executive Orders ,
Fiduciary Duty ,
Fiduciary Rule ,
Field Assistance Bulletins ,
Internal Revenue Code (IRC) ,
Investment Adviser ,
IRS ,
Reporting Requirements ,
Trump Administration
The Department of Labor’s “fiduciary duty” Rule continues to get more bollixed up. DOL announced a temporary enforcement policy that will give a “free pass” for any violations (a) in the gap between effective date and delay,...more
The US Department of Labor today proposed a 60-day extension (through June 9) for the effective date of its Fiduciary Duty Rule and related exemptions.
The extension would give DOL some time to complete the re-analyses...more
The Department of Labor’s Fiduciary Duty Rule remains on track for April 10 implementation, notwithstanding a maelstrom of hype about it.
Nearly everyone expected the new administration would delay the Rule – and many...more
OCIE released its 2017 exam priorities on January 12. The priorities list was most notable for being shorter than prior years. But that likely means only more focus, rather than less vigor....more
1/13/2017
/ BSA/AML ,
Cybersecurity ,
ETFs ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Financial Markets ,
Investment ,
Investment Adviser ,
Money Market Funds ,
Municipal Advisers ,
OCIE ,
Pensions ,
Private Funds ,
Recidivism ,
Retail Investors ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
The Sixth Circuit this week declined the SEC’s request to dismiss a Constitutional challenge to the new MSRB pay-to-play rules. Instead, the Court ordered the case to a merits panel for consideration. The Republican parties...more
10/10/2016
/ Administrative Merits Determinations ,
Broker-Dealer ,
Financial Institutions ,
Financial Markets ,
Investment Adviser ,
Motion to Dismiss ,
MSRB ,
Municipal Advisers ,
Pay-To-Play ,
Securities ,
Securities and Exchange Commission (SEC)
The Securities Division of Tennessee’s Department of Commerce and Industry has increased its enforcement activity during 2016. The recent actions include:
Final Administrative Orders:
Clifton Alexander and HugeROI.com...more
The SEC announced August 25 that it approved FINRA’s pay-to-play rules governing placement-agent or solicitor broker-dealers and was “prepared” to approve the extension of MSRB Rule G-37 to municipal advisors as well....more
9/8/2016
/ Broker-Dealer ,
Dodd-Frank ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Markets ,
Investment Adviser ,
MSRB ,
Municipal Advisers ,
Pay-To-Play ,
Rule 206(4)-5 ,
Rule G-37 ,
Securities ,
Securities and Exchange Commission (SEC)
In a recent new release, the Tennessee Securities Division urged investors to ask tough questions of their investment advisors, and about their compensation, account arrangements and educational / regulatory history. The May...more
Congress voted this week to de-rail the Department of Labor’s sweeping fiduciary-duty suite of rule-making, but doesn’t have the votes to override the President’s threatened veto....more
The U.S. Department of Labor recently announced a new suite of Rules that are a game-changer for any Financial Institution that gives investment advice (including rollovers and distributions) to owners or beneficiaries of...more
White House officials this week said that President Obama’s fiscal 2017 budget will seek major increases in funding for Wall Street regulators in the near term, and proposes to double their funding by 2021....more