On Sept. 25, 2019, the SEC adopted Rule 6c-11 under the Investment Company Act of 1940, as amended (“1940 Act”). The new rule allows sponsors of exchange-traded funds (“ETFs”) to launch and operate ETFs without first obtaining individual exemptive orders
Regulatory & Compliance Update
News, insight and market knowledge on regulatory and compliance issues from Schulte Roth & Zabel
Regulatory & Compliance Update, published by Schulte Roth & Zabel LLP, covers developments in financial regulation and compliance, focusing on securities laws, investment company regulations, and sanctions programs. The blog addresses regulatory changes affecting exchange-traded funds (ETFs), private funds, and banking entities, including updates on the Volcker Rule and SEC rulemakings. It also reports on enforcement trends, cybersecurity and data protection requirements, and international sanctions impacting jurisdictions such as Iran and Venezuela. The blog provides summaries of regulatory agency guidance, rule proposals, and final rules relevant to investment advisers, broker-dealers, and financial institutions.
Latest from Regulatory & Compliance Update
Sanctions Update: Iran, Venezuela, Ukraine, Nicaragua and Cuba
OFAC continues to issue sanctions and associated guidance relating to a number of targeted jurisdictions. Starting with Iran, which has been the subject of new sanctions over recent months, and continuing with Venezuela, Ukraine, Nicaragua and Cuba, this Alert sets forth…
Private Funds Regulatory Update | August 2019
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SEC Releases Final Interpretation of the Standard of Conduct for Investment Advisers
The SEC has, for some time, been reviewing the standard of conduct required of investment advisers and broker-dealers under federal securities laws. Recently, these various initiatives concluded…
FDIC and OCC Approve Volcker 2.0 — Summary of Amendments to Fund Activity Provisions
On Aug. 20, 2019, the Federal Deposit Insurance Corporation (“FDIC”) and the Office of the Comptroller of the Currency (“OCC”) approved a final rule to amend the regulations adopted in 2013 implementing Section 13 of the Bank Holding Company Act,…
SEC Staff Publishes Statement on LIBOR Transition
On July 12, 2019, the staffs of several divisions within the SEC published a statement on the transition away from the London Interbank Offered Rate (“LIBOR”). The panel banks which currently report information used to establish LIBOR for different currencies…
SRZ FAQ: US Advertising Rules for UK Fund Managers
Are the US advertising rules important for all UK managers?
As U.S. advertising rules fall under U.S. anti-fraud statutes, whether a U.K. fund manager is registered with the SEC or not, there are specific rules managers need to comply with…
EMIR REFIT: Investment Funds Are Required to Notify the FCA and ESMA If They Exceed the Clearing Threshold with Effect from 17 June 2019
EMIR REFIT enters into force on Monday, 17 June 2019.
Under EMIR REFIT, financial counterparties are required to calculate their aggregate month-end average positions in derivatives for the previous 12 months to determine whether they exceed one or more of…
New NFA Proficiency Requirements for Hedge Fund Managers
The National Futures Association, the self-regulatory organization for the commodity futures and swaps industry, recently updated its rules to impose “swaps proficiency requirements” on associated persons of NFA members that engage in swaps-related activities. These requirements are likely to be…
FinCEN Assesses Civil Money Penalty Against P2P Currency Exchanger for BSA Violations
On April 18, 2019, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury announced the assessment of a civil money penalty against Eric Powers for willfully violating the registration, program and reporting requirements of the Bank Secrecy…
SEC Publishes First-Ever No-Action Letter for a Cryptocurrency Enterprise and a Framework for when a Cryptocurrency Is a Security
On April 3, 2019, the U.S. Securities and Exchange Commission published a framework aimed at assisting in determining whether a digital asset is a security. Alongside the Framework, the SEC also published a no-action letter for TurnKey Jet, Inc., the…