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SEC

Jun 08, 2021

Fixing FICC: Agency Proposes Rule Changes to Encourage More Repo Clearing

On Tuesday, May 25, 2021, the U. S. Securities and Exchange Commission (“SEC”) issued a notice (the “Notice”) that the Fixed Income Clearing Corporation (“FICC”) had filed proposed rule changes intended to enhance the ability to clear certain trades, particularly those involving repurchase agreements (“Repos”) on FICC.» Read More

May 27, 2021

“Margin, I Have to Have More Margin:” The National Securities Clearing Corporation Proposes to Increase the Minimum Required Fund Deposit

On Monday, May 10, 2021, the U.S. Securities and Exchange Commission (“SEC”) issued a Notice that the National Securities Clearing Corporation (“NSCC”) filed a proposed rule change with the SEC to raise the amount of the Minimum Required Fund Deposit to be made and maintained by member firms using the NSCC.» Read More

May 25, 2021

Data Integrity: The SEC Sanctions S & P Dow Jones Indices LLC

On Monday, May 17, 2021, the U.S. Securities and Exchange Commission (“SEC”) initiated Administrative Proceedings (an enforcement action) against the S & P Dow Jones Indices, LLC (“SPDJI”), in connection with data integrity, for failing to maintain accurate and timely market information used for the S & P 500 VIX Short-Term Futures Index ER (the “Index”).» Read More

May 20, 2021

Too Much Bother: Broker/Dealer Affiliate of An Insurer Catering to Retirement Plans

GWFS Equities, Inc., is a registered broker/dealer headquartered in Greenwood, Colorado, and an affiliate of Great-Western Life & Annuity Company (“Great Western”). GWFS’s “core business concerns executing transactions on behalf of…[the insurance company’s] employer-sponsored retirement plan clients.” According to the May 12, 2021, Administrative Proceeding brought by the U.S.» Read More

May 18, 2021

Raising the Bar: SEC to Propose Increased Thresholds for Performance-Based Fees

On Monday, May 10, 2021, the U.S. Securities and Exchange Commission (“SEC”) issued a Notice of Intent to Issue an Order that “would adjust for inflation dollar amount thresholds in the rule under the Investment Advisers Act of 1940 (the “1940 Act”), which permits investment advisers to charge performance-based fees” to certain clients.» Read More

May 06, 2021

The Dog Ate My Financials: Dissembling Filers Sanctioned by the SEC

On Thursday, April 29, 2021, the U.S. Securities and Exchange Commission (“SEC”) charged eight public companies for failing to disclose (in requests for permission to file periodic disclosure reports including financials late) that the delays were caused by anticipated restatement or correction of previously filed financial statements.» Read More

Apr 29, 2021

Tightening the Reins: SEC Approves Proposed Rule Change to Clearing Agency Investment Policy

On March 8, 2021, the Depository Trust Company (“DTC”), the Fixed Income Clearing Corporation (“FICC”), and the National Securities Clearing Corporation (“NSCC”) (each a “Clearing Agency” and collectively the “Clearing Agencies”) filed with the U.S. Securities and Exchange Commission (“SEC”) a proposal to amend the investment policy for each Clearing Agency.» Read More

Apr 27, 2021

“I Robot:” The SEC Evaluates the First Law of Robotics

One of the priorities announced in the 2021 Examination Priorities Report of the U.S. Securities and Exchange Commission’s Division of Examinations (“EXAMS”) is a review of robo-advisory firms that build client portfolios with exchange-traded funds (“ETF’s”) and mutual funds. EXAMS notes that these clients are almost entirely retail investors without investments large enough to support the costs of regular human investment advisers.» Read More

Apr 20, 2021

Red Flags and SARs: The SEC Warns Broker/Dealers on AML

On Monday, March 29, 2021, the Division of Examinations (“EXAMS”) of the U.S. Securities and Exchange Commission (“SEC”) issued a Risk Alert on “Compliance Issues Related to Suspicious Activity Monitoring and Reporting at Broker-Dealers.” EXAMS is concerned that broker/dealers and mutual funds are failing to meet their obligations as “financial institutions” subject to monitor and report to the Financial Crimes Enforcement Network (“FinCEN”) Division of the U.S.» Read More