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
FinReg + Policy Watch
FinReg + Policy Watch, published by Goodwin Procter, focuses on regulatory developments and policy issues affecting financial markets and institutions. The blog covers topics such as SEC rulemakings and examinations, compliance with financial regulations including security-based swaps and identity theft protections, market structure proposals, and regulatory notices from FINRA. It provides updates and analysis on enforcement priorities, regulatory alerts, and best practices for firms operating in investment funds, broker-dealer, and advisory sectors. The content is aimed at helping financial services professionals understand and navigate evolving regulatory frameworks and compliance obligations.
Latest from FinReg + Policy Watch - Page 8
Time’s Up! Broker-Dealers Must Comply with the Customer Protection Rule When Borrowing Customer Securities
By Nick Losurdo
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…
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…
Illinois Imposes 36% MAPR Rate Cap on Consumer Loans; Takes Aim at Fintech-Bank Partnerships and Secondary Market Transactions
By FinReg Blog
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…
UK ICO Confirms Transfers of Data to SEC in the Public Interest
By FinReg Blog
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…
CFTC Announces New Climate Risk Unit — the “CRU”
By Nick Losurdo
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…
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…
SEC Staff Seeks Input on Cross Trading Between Affiliated Funds
By Mac Laban
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…
DOL Will Not Enforce Its Own ESG Rule, But Fiduciaries Should Not Ignore It
By Bibek Pandey
The Department of Labor (DOL) recently announced that it will not enforce its own rule on investment duties under ERISA. The rule makes it more difficult for investment fiduciaries to consider environmental, social, governance and similar (“ESG”) issues in their…
Climate Clash at the Commission?
By Nick Losurdo
A flurry of recent climate-related announcements from the SEC forecasts an upcoming policy battle at the agency. Acting Chair Allison Herren Lee has signaled that “ESG” will clearly be in focus across the SEC’s various divisions, including Examinations, Corporation Finance,…