News

April 25, 2023

Securities and Exchange Commission Chair Gary Gensler testified before members of the House Financial Services Committee as part of the Committee’s oversight process. The hearing itself focused mostly on the Commission’s enforcement in the crypto markets, ESG disclosure proposals, equity market structure proposals, and the Commission’s rapid pace of rulemaking. Many members of the Committee noted the pace of rulemaking and the short comment periods are making it difficult for market participants to keep up. Additionally, several Members of Congress pushed back against the Commission’s open-end fund proposal which would mandate swing pricing, impose a hard close, and change liquidity management provisions for funds.

April 24, 2023

The SEC’s Division of Investment Management announced an inaugural program entitled, “Conference on Emerging Trends in Asset Management.” The event is scheduled for Friday, May 19 at 10:00am ET and will be available to the public through a broadcast on the Division of Investment Management webpage.

April 20, 2023

Ropes & Gray established a platform dedicated to tracking state regulation of ESG investments. The tracker breaks down legislative action state-by-state and includes thought leadership from the Ropes & Gray team.

April 19, 2023

ACA Foreside plans to host a webcast entitled, “Launching an ETF: A Playbook to Success.” The program will cover the regulatory, financial, operational and distribution requirements of exchange-traded funds.

April 18, 2023

The Securities and Exchange Commission (SEC) Office of Minority and Women Inclusion (OMWI) released its 2022 Annual Report to Congress summarizing the Commission’s actions in promoting diversity, equity, inclusion, and accessibility (DEIA). The report notes that inside the Commission, OMWI rolled out a pilot of its DEIA Assessment program and initiated an Employee Affinity Group which included a virtual leadership summit. The Commission continues to work with a network of “Diversity Partners” which includes many women and minority-focused professional associations and educational organizations.

April 17, 2023

Tomorrow, Jay Spinola, partner at Willkie Farr & Gallaher LLP, will provide an overview of interval and tender offer funds, including a discussion of the regulatory framework governing their operations and a comparison to traditional CEFs, mutual funds, ETFs, and private funds.

April 13, 2023

The Securities and Exchange Commission proposed rules that would amend Regulation S-P and require broker-dealers, investment companies, registered investment advisers, and transfer agents to provide notice to individuals impacted by certain types of data breaches that may put them at risk of identity theft or other harm as well as require proper disposal of consumer information.

April 12, 2023

Secretary Yellen noted that for regulators, “policy is not aimed at preventing external shocks nor eliminating all volatility,” but rather the goal of macroprudential policy is to “make the financial system more resilient to external shocks – so the system can dampen, not amplify, their consequences…” She noted there exists unfinished business in the banking, nonbank financial intermediation, private fund (specifically noting hedge funds), and digital assets sectors.

April 11, 2023

SEC Chair Gary Gensler's written testimony noted the Commission requested funds to grow division staff including those in the Exams Division, due to the growth of registered investment advisers (22% over five years), and a growth in private funds (50% over five years). Several Republicans expressed concern with the Commission’s proposed climate disclosure rules, while Democrats expressed support for increasing the Commission’s budget.

April 10, 2023

The ESG Guide makes suggestions such as who within the organization should participate in the ESG program and topics the ESG program should cover, as well as surveying the current state of regulation and likely near-term developments.

April 6, 2023

The program includes discussions surrounding new and proposed SEC rules, industry data requirements, sustainability rating structures, an update on ESG investing strategies, and oversight responsibilities for fund boards. The sessions will take place in the Smith Suite at the Ronald Reagan International Trade Building in Washington, D.C., followed by a networking event in the evening.

April 5, 2023

Commissioner Mark Uyeda's remarks noted the blistering pace of rulemaking, and he went further to state, “[m]any of the Commission’s rulemaking proposals are interrelated and interconnected, yet these proposals are not evaluated pragmatically and holistically.” He also touched on the recent open-end fund proposals noting, “if registered investment companies are regulated to the extent that they are less desirable options for 401(k) and other retirement plans, collective investment trusts and other less regulated investment options may fill the gap.”

April 4, 2023

The discussion will focus on the impact of market performance and increased SEC scrutiny and rulemaking, and considerations for independent directors during the contract renewal process.

April 3, 2023

Director William Birdthistle's remarks focused on three key areas: technological advancement, changing demographics, and rapid growth. Notably, his remarks did not touch on the Commission’s open-end fund rule proposals or climate disclosure proposals pending before the Commission.

March 30, 2023

The report notes that “At present, 87 countries—representing more than 90 percent of global GDP—are exploring CBDCs.” McKinsey highlights several reasons for the recent spike in CBDC interest, including: Plummeting cash usage; Growing interest in privately issued digital assets; Decreasing sense of central banks as payments innovators; and, Rising global payment systems.

March 29, 2023

A House subcommittee recently examined several legislative measures that would allow retail investors new access to private markets as well as increasing capital access for smaller and emerging companies. Two notable legislative measures were discussed in these hearings, the “Increasing Investor Opportunities Act” and a bill that would permit a registered investment company to omit certain fees from the calculation of Acquired Fund Fees and Expenses.

March 28, 2023

The Commission states the reopening of the comment period “will allow interested persons additional time to analyze the issues and prepare comments in light of other regulatory developments, including whether there would be any effects of other Commission proposals related to cybersecurity risk management and disclosure that the Commission should consider.”

March 27, 2023

This month, the U.S. House of Representatives and the U.S. Senate used the Congressional Review Act (CRA) to block a Department of Labor (DOL) rule that allows ERISA-regulated fiduciaries greater flexibility and leeway to consider ESG factors and explicitly allows for the consideration of certain ESG factors that are financially relevant to an investment’s risk-return analysis. Biden exercised a presidential veto over the resolution on March 20.

March 23, 2023

The paper describes an improved way to measure fund manager skill by proposing company size should be broken into two sub-groups: big vs. mid-cap and mid-cap vs. small, rather than using only one size comparison. Dr. Stewart stated the technique he and his co-authors put forth impacts fund managers because it may “move you from being below average to above average, or vice versa.”

March 22, 2023

Biden's strategy calls for modernizing federal systems' cybersecurity defenses while also increasing offensive hacking capabilities in the intelligence community. The strategy builds off existing executive orders (National Security Strategy, Executive Order 14028, National Security Memorandum 5, and others) as well as legislative efforts on Capitol Hill.