News

July 6, 2022

The Senate Banking Committee held a hearing to examine the INDEX Act which would require investment advisers for passively managed funds to arrange for pass-through voting of proxies for certain securities. The conversation focused on the impact the largest three passive fund managers have on the proxy voting process.

July 5, 2022

In remarks, SEC Chair Gary Gensler highlighted the importance of brokers and advisers complying with standards on care, loyalty, best interest, and best execution.

June 30, 2022

The SEC plans to launch a game show-themed public service campaign to encourage investors to “research investments and get information from trustworthy sources to understand the risks before investing.”

June 29, 2022

The House Financial Services Committee heard testimony from Federal Reserve Vice-Chair Lael Brainard regarding the establishment of a U.S. Central Bank Digital Currency. The hearing focused on the utility of a CBDC, authorizing legislation, access to CBDC by the unbanked and underbanked, and the risk to depository institutions, specifically smaller community banks if there is a transition to a digital currency.

June 28, 2022

The SEC recently announced eight new members to fill all vacancies on the Investor Advisory Committee. The new members will join the fifteen current Committee members, and will serve four-year terms.

June 27, 2022

The Commission recently denied a requested rule change by NYSE Arca to list and trade shares of a proposed carbon-neutral spot bitcoin exchange-traded fund, the One River Carbon Neutral Bitcoin Trust.

June 23, 2022

In the first enforcement action under Section 11 of the Investment Company Act of 1940, which regulates variable annuity exchanges, the SEC settled charges against RiverSource Distributors, Inc. for improper switching or replacing of variable annuities.

June 22, 2022

Senator Elizabeth Warren (D-MA) released a new, 26-page report on Special Purpose Acquisition Companies (SPACs) that covers how SPACs are structured, SPAC fees, fraud in SPAC disclosures, and self-dealing by SPAC creators and sponsors.

June 21, 2022

Recently, in Jarskey v. SEC, the Fifth Circuit Court of Appeals held that administrative enforcement proceedings before administrative law judges (ALJs) are fundamentally unconstitutional.

June 16, 2022

SEC Chair Gary Gensler testified during a House Appropriations Committee subcommittee hearing as part of the FY2023 congressional appropriations process. Gensler’s comments focused on the need for an increased budget at the SEC, the length of comment periods for rule proposals, and ESG related issues.

June 15, 2022

The Securities and Exchange Commission announced the appointment of Richard Best to serve as the Director of the Division of Examinations.

June 14, 2022

The SEC charged BNY Mellon Investment Adviser, Inc. for misstatements and omissions about the use of ESG considerations when making investment decisions for certain mutual funds that it managed. The SEC Order found that BNY Mellon Investment Adviser represented or implied in numerous statements that all investments in the related funds underwent an ESG quality review, even though that was not always the case.

June 13, 2022

The Senate Banking Committee held a hearing to examine the nominations of Michael Barr to serve as the Federal Reserve Vice-Chair for Supervision, Jaime Lizárraga to serve as a Commissioner at the SEC, and Mark Uyeda to serve as a Commissioner at the SEC.

June 9, 2022

The CFTC unanimously voted to release a Request for Information (RFI) that seeks public comment on climate-related financial risk to “better inform its understanding and oversight of climate-related financial risk as pertinent to the derivatives markets and underlying commodities markets.”

June 8, 2022

The article makes several suggestions to address generational changes in the boardroom that might be helpful to some fund boards.

June 7, 2022

While some companies voiced broad support for an SEC reporting regime, others pushed back noting public disclosures could result in additional compliance costs, confusion while responding to breaches in real-time, and volatility in stock pricing.

June 6, 2022

Regulatory matters, closed-end fund matters, and fund shareholder demands for inspection of books and records constituted the most common subjects of claims notices submitted under D&O/E&O policies in 2021, according to the report.

June 2, 2022

Gensler noted “I’ve asked our Division of Investment Management and Division of Examinations to take a renewed and focused look at the use of derivatives by registered investment companies so that they’re compliant with our rules.”

June 1, 2022

Grewal's remarks note that while a “zealous advocacy” is required, delay tactics, slow document production, and other “dilatory or obstructive” efforts may impact cooperation credit that the agency extends as a courtesy to those who oblige investigation.

May 31, 2022

The “Investor Democracy is Expected (INDEX) Act” would require investment advisers of passively-managed funds to vote proxies in accordance with the instructions of fund investors—not at the discretion of the adviser.