News

November 1, 2023

Gurbir Grewal the Director of the Division of Enforcement at the Securities and Exchange Commission (SEC) delivered remarks at a New York Bar Association Compliance event on the important role of compliance professionals as “the first lines of defense against misconduct.” Director Grewal stated actions against compliance professionals are rare because “we do not second-guess good faith judgments of compliance personnel made after reasonable inquiry and analysis.”

October 31, 2023

The Securities and Exchange Commission (SEC) adopted new Rule 10c-1a which will require covered persons to report information about securities loans to a registered national securities association (RNSA) and require RNSAs to make certain information that they receive regarding those lending transactions publicly available.

October 30, 2023

The EY Center for Board Matters will host a webinar entitled, “How Boards Can Support a More Agile Response to Crises.” This event is part of a wider EY series “Better Questions for Boards.”

October 26, 2023

Davis Polk notes the OIG report “was a more independent review” and spent more time examining the evidence and reflecting on the root causes of risk management and supervision deficiencies. The OIG Report and the Barr Report both found that “the primary cause of SVB’s failure was rooted in basic risk management mistakes by its senior leadership and deficient oversight by its board of directors.”

October 25, 2023

The priorities inform investors and registrants of the key risks, examination topics, and priorities that the Division plans to focus on in the upcoming year. Overall, the Division of Examinations plans to focus on the investment advisers’ duty of care and loyalty, the processes for determining the best interest of the client is followed, disclosures made to investors, trading practices at broker-dealers, risks and controls at clearing agencies, and record-keeping responsibilities.

October 24, 2023

The Mutual Fund Directors Forum and Barrington Partners will host a webinar entitled, “Barrington’s 2023 Audit Survey Summary of Findings.” In part, the survey shows that after a 14-year hiatus inflation has become a factor again, and this development intersects with structural changes: as auditors offshore work and audit staff moved off-site.

October 23, 2023

Kirkland & Ellis plans to host a series of webinars entitled, “Unlocking the Retail Market.” The seven-part webinar series will explore retail access funds, one of the fastest-growing product areas.

October 19, 2023

Panelists will discuss how AI impacts data privacy, risk and governance today and actions organizations can take to prepare for responsible AI implementation.

October 18, 2023

The Securities and Exchange Commission (SEC) announced settlements with 10 broker-dealers and affiliated investment advisers in connection with their failures to maintain and preserve electronic “off-channel” communications. These settlements follow a series of enforcement actions by the SEC and the Commodity Futures Trading Commission (CFTC), dating back to September 2022.

October 17, 2023

The “Climate Corporate Data Accountability Act,” requires disclosure of Scope 1, Scope 2, and Scope 3 greenhouse gas emissions by entities with revenue of at least $1 billion dollars. The second, the “Climate-Related Financial Risk Act” requires disclosure of an entity’s climate-related financial risk and the measures adopted to reduce and adapt to the risk so disclosed by entities with revenue of at least $500 million dollars.

October 16, 2023

The Mutual Fund Directors Forum and ACA Global will host a webinar entitled, “ESG Data: Updates on an Evolving Regulatory and Product Landscape.” Luke Wilcox, head of ESG Data at ACA Global, will walk through what directors need to know to fulfill their oversight responsibilities.

October 12, 2023

Fuse Research released a report highlighting trends in independent director board leadership among registered funds. The report finds that nearly three-quarters of boards have an independent chair (51%) or a lead independent (23%).

October 11, 2023

Morningstar released the 2022 U.S. Fund Fee Study which highlights that fund fees in the United States are generally falling due to investor demand and competition among asset managers. The report estimates “investors saved nearly $9.8 billion in fund expenses last year.”

October 10, 2023

Securities and Exchange Commission (SEC) Chair, Gary Gensler, testified in front of the full House Financial Services Committee as part of the Committee’s focus on oversight of the agency. The hearing focused on a wide range of topics including, the pace and scope of the SEC’s rulemaking agenda, digital assets, private funds, capital formation, artificial intelligence, ESG disclosures, diversity disclosure for corporate boards, and legal challenges to the SEC’s rulemaking and actions.

October 5, 2023

The Securities and Exchange Commission (SEC) proposed a rule to regulate potential conflicts of interest associated with broker-dealers’ and investment advisers’ use of AI-related technologies in their interactions with investors.

October 4, 2023

The EY Center for Board Matters plans to host a webinar entitled, “Audit Committee Responses to New Cybersecurity Developments.” The panel will discuss the latest perspectives on how audit committees can help enhance oversight of cyber and data privacy risks.

October 3, 2023

The Mutual Fund Directors Forum and Stradley Ronon announce the release of the updated white paper “Practical Guidance for Fund Directors on Valuation Oversight.” The updated white paper examines the valuation of a fund’s portfolio securities, requirements surrounding fund valuation procedures, the board’s responsibility in overseeing valuation, and the responsibilities of the valuation designee under Rule 2a-5.

October 2, 2023

The Mutual Fund Directors Forum and presenters from Brown Brothers Harriman will host a webinar entitled, “Exchange Traded Funds: A Market Update for Fund Directors.” The discussion will include ETF investor interest areas, market trends impacting ETF sponsors, and developments in the active ETF space.

September 28, 2023

Director of the Division of Investment Management, William Birdthistle, testified in front of the House Financial Services Subcommittee on Capital Markets as part of a series of oversight hearings with SEC division directors. Many members of the Subcommittee voiced concern over the short comment periods and number of proposals the Commission has proposed under Chair Gary Gensler’s tenure.

September 27, 2023

The Risk Alert notes there are more than 15,000 registered investment advisers managing over US$115 trillion in assets, and the SEC is able to examine approximately 15% of these advisers annually. Therefore, the SEC staff employs a risk-based approach to select advisers for examination.