The SEC recently solicited public comment on digital engagement practices (DEPs) used by some broker-dealers and investment advisers, including predictive data analytics, differential marketing, and behavioral prompts (such as gamification). The public comment window closes October 1, 2021. Comments letters
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Latest from FinReg + Policy Watch
SEC Charges 27 Firms with Form CRS Failures
Word to the wise: when a regulator kindly reminds you on multiple occasions that you need to comply with its rules, you should probably heed those warnings. On July 26, 2021, the SEC announced settlements with 21 investment advisers and
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FINRA Adds Continuing Membership Application Requirement to Address Brokers With a History of Misconduct
FINRA recently amended its rules in order to strengthen its tools to respond to brokers with a significant history of misconduct and the firms that employ them. Firms must comply with the changes by September 1, 2021. Our recent Client
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Time’s Up! Broker-Dealers Must Comply with the Customer Protection Rule When Borrowing Customer Securities
On April 16, 2021, the staff of the SEC Division of Trading and Markets reminded broker-dealers borrowing fully paid and excess margin securities from their customers (FPL programs) that they are obligated to comply with Exchange Act Rule 15c3-3 (Customer
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ISDA Publishes Dodd-Frank Security-Based Swap Protocol
On March 15, 2021, ISDA published the ISDA 2021 Security-Based Swaps (SBS) Top-Up Protocol (the SBS Top-Up Protocol). The SBS Top-Up Protocol enables SBS dealers (SBSDs) and other market participants to comply with certain SBS rules implemented by the SEC
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Illinois Imposes 36% MAPR Rate Cap on Consumer Loans; Takes Aim at Fintech-Bank Partnerships and Secondary Market Transactions
On March 23, 2021, the Predatory Loan Prevention Act (the “PLPA”) was signed into law by Illinois Governor J.B. Pritzker. The PLPA imposes a 36% military annual percentage rate (“MAPR”) cap on all loans made to Illinois consumers. It applies
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UK ICO Confirms Transfers of Data to SEC in the Public Interest
The UK Information Commissioner’s Office (“ICO”) has published a letter sent to the U.S. Securities and Exchange Commission. The ICO confirms that it is possible for SEC regulated UK firms to transfer personal data to the U.S. where the transfer
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CFTC Announces New Climate Risk Unit — the “CRU”
On March 17, 2021, Acting CFTC Chairman Rostin Behnam announced that the derivatives regulator had established a new interdivisional group called the Climate Risk Unit or the “CRU” to focus on the derivatives markets’ role in addressing climate-related risk and
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SEC’s Crenshaw Proclaims “Enforcement for Everyone”
On March 9, 2021, SEC Commissioner Caroline Crenshaw indicated that the SEC should take a tougher stance regarding corporate wrongdoers. In a virtual conference before the Council of Institutional Investors, Crenshaw conveyed her view that the agency’s enforcement program has
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SEC Staff Seeks Input on Cross Trading Between Affiliated Funds
On March 11, 2021, the staff of the SEC’s Division of Investment Management issued a statement addressing cross trading among affiliated registered funds and soliciting feedback in this area. The staff issued the statement in response to public feedback on
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