Forum News Feed

July 24, 2023

K&L Gates recently launched a technology hub focused on policy and regulatory updates in the Artificial Intelligence (AI) space. According the Hub these areas will continue to grow and as they do, “AI and generative AI will impact a number of legal regulations that currently exist and are expected to be enacted shortly.”

July 20, 2023

In a recent publication from Institutional Shareholder Services (ISS), President and CEO Gary Retelny notes that ISS is “not an activist or advocacy organization,” rather the organization is, “an impartial, federally regulated service provider to institutional investors who direct and control their own proxy voting decisions.” Retelny argues that certain ISS clients “recognize that environmental and social factors can be financially material to their investment decisions.”

July 19, 2023

Perkins Coie Partners Molly Moynihan and Sumedha Ahuja will provide an introduction to the technology and discuss key opportunities and threats for the asset management industry.

July 18, 2023

The report focuses primarily on the environmental aspect of ESG factors and examines the impacts of the Biden administration’s proposed legislative and regulatory policies on capital markets and economic performance. The House Financial Services Committee is likely to spend July holding hearings on ESG-related issues, including at least one mark-up.

July 17, 2023

Ernst & Young plans to host a webinar titled, “2023 alternative and registered funds midyear update.” The program will cover the latest developments impacting alternative and Registered Investment Companies, including tax, legislative, regulatory, and accounting updates.

July 13, 2023

Yesterday, the SEC voted 3 – 2 to adopt amendments to the rule governing money market funds. Notably, the Commission abandoned its swing pricing proposal in favor of a mandatory liquidity fee. As expected, the Commission removed the temporary redemption gates imposed and decoupled discretionary liquidity fees from a fund’s weekly asset minimum that were required by the 2014 money market fund amendments.

July 12, 2023

The program, featuring presentations from the digital asset and blockchain team at Ernst & Young, will focus on digital asset trends in asset management, tokenization, and opportunities and considerations for offerings in the industry.

July 11, 2023

Chair Gary Gensler briefly touched on the rise in popularity of single-stock ETFs, including inverse and levered products. Gensler noted that holding a single-stock ETF is not the same as directly holding a share of an issuer, it involves more risk, particularly to retail investors. His comments also touched on predicative data analytics, and he noted the potential conflict of interest inherent in using AI and machine learning in the financial services space.

July 10, 2023

The Capital Markets Subcommittee, chaired by Representative Ann Wagner (R-MO) heard testimony from the Director of the Division of Trading and Markets, Haoxiang Zhu, and Dr. Jessica Wachter, SEC Chief Economist and Director of the Division of Economic and Risk Analysis (DERA). Chair Wagner noted agencies typically advance one proposal at a time by presenting clear and convincing evidence of a problem or failure warranting such a drastic policy change, she argued that has not been the case at the Commission. Additionally, the Financial Services Oversight Subcommittee, chaired by Representative Bill Huizenga (R-MI), heard testimony from the SEC’s General Counsel Megan Barbero. The hearing focused on the Commission’s slow response to inquiries from the full Committee and from the Subcommittee.

July 6, 2023

On Wednesday, July 12 at 12:00pm ET, Dechert plans to host a webinar titled, “ESG Backlash in the United States: Litigation Risks.” The program will focus on the risks of litigation for corporate boards and investment managers who face “increasingly difficult choices regarding their consideration of ESG factors.”

July 5, 2023

SEC Compliance Consultants (SEC3) recently published a tipsheet for SEC Exam Preparedness that covers what to do before Commission staff come in as well as what to do once an entity is notified of an exam. SEC3 notes that funds should focus on disclosure, performance metrics, and “adequate resources to comply with securities laws in this changing regulatory environment.”

June 29, 2023

The report sites nine recommendations for boards to consider as AI technology continues to proliferate the business community. While the recommendations are mostly focused on what corporate boards should be considering, there is likely to be overlap for fund boards as part of their oversight and understanding of the fund’s investments and strategy.

June 27, 2023

The paper focuses on SEC Enforcement actions through the first part of the year and notes the Commission’s workload has been particularly focused in “all aspects of crypto,” as the Commission “claimed jurisdiction over crypto exchanges, lending platforms, and other intermediaries by not only charging exchanges for failing to register with the Commission but also by enforcing the more traditional anti-fraud and anti-manipulation provisions of the Exchange Act.”

June 26, 2023

Simpson Thacher partners Ryan Brizek and Alan Turner will host a webinar covering recent updates in closed-end fund litigation as well as general trends in the closed-end fund space.

June 22, 2023

Dechert recently released a regulatory update highlighting the Biden Administration’s regulatory focus on Artificial Intelligence (AI) technology updates. Dechert also notes that “Federal agencies, including the Federal Trade Commission and Consumer Financial Protection Bureau, have issued statements confirming that they will apply existing laws and regulations to new technologies, including AI, with a particular focus on enforcing civil rights, non-discrimination, fair competition, consumer protection and other vitally important legal protections.”

June 21, 2023

The program will focus on understanding governance risks and opportunities as well as identifying ways for the organization to ensure it has the experience and skills to mitigate the changing environment.

June 20, 2023

In a statement, SEC Chair Gary Gensler noted, “our Commission has updated its ruleset to meet the challenges of a new hour.” Of note to fund directors, the agenda mentions anticipated regulatory action on “Fund Fee and Disclosure Reform” for April 2024.

June 15, 2023

His remarks, entitled “Bear in the Woods,” touched on investment and liquidity risks posed by certain types of investment funds as well as the SEC’s recent proposals addressing those perceived risks. When referencing the recent open-end fund proposal, Chair Gensler stated the Commission put forward “a number of alternatives” including “either within the framework of swing pricing or liquidity fees…”

June 14, 2023

The paper highlights that boards “play a crucial role in ensuring the companies they oversee are performing the due diligence necessary to assess any risks that third parties pose to the company and its operations.” Third party vendors can provide a variety of services but boards should ensure management considers what happens if there is a breach at the vendor, or even a scenario where the vendor is out of business.

June 13, 2023

The draft sets a framework for a company to register with the SEC in order to issue a digital asset, allows for Alternative Trading Systems (ATS) to register as exchanges for crypto assets that remain securities, and provide a regulatory pathway for CFTC oversight of digital assets that move outside of the investment contract status. The draft is also silent on any specific existing assets, which likely means that digital assets currently in existence would need to be certified separately.