News

February 12, 2024

Enforcement lawyers at Stradley Ronon will review key enforcement themes and results for fiscal year 2023 including those discussed in the SEC’s own enforcement report.

February 8, 2024

The Securities and Exchange Commission (SEC) voted 3-2 to adopt final rules concerning SPAC initial public offerings and de-SPAC transactions. In his statement of support, Commission Chair Gary Gensler commented, “Today’s adoption will help ensure that the rules for SPACs are substantially aligned with those of traditional IPOs, enhancing investor protection through three areas: disclosure, use of projections, as well as issuer obligations.”

February 7, 2024

The hearing focused on the Commission’s proposed rulemaking on corporate issuers’ disclosure of climate risk and impact. Subcommittee Chairman Bill Huizenga (R-MI) noted that in the wake of the Supreme Court decision in West Virginia v. EPA, the SEC should rethink the scope of its proposals as it may see many of them challenged in court.

February 6, 2024

The SEC’s Office of Investor Education and Advocacy, along with FINRA and the North American Securities Administrators Association (NASAA) jointly issued an Investor Alert regarding the risk of investment fraud associated with AI and other emerging technologies. The Investor Alert highlights the increase in investments in AI-focused companies, and managers evaluating these investments in their funds should conduct thorough due diligence regarding the use of AI and associated compliance controls and oversight.

February 5, 2024

K&L Gates partners will look back at the Commission’s 24 adopted rules and 18 new proposals, while also touching on key priorities from the Division of Examinations and the Division of Enforcement.

February 1, 2024

According to the Fuse data, of funds launched between the second quarter of 2013 and the second quarter of 2018, 59% of those funds still exist presently.

January 31, 2024

A McKinsey article addresses the rapid advancement of generative artificial intelligence (AI) and the importance of regulatory oversight to prevent inherent risks in its development. The article notes there are common themes between regulatory structures currently proposed including: Transparency, Oversight, Accountability, Nondiscrimination, Technical Robustness and Safety, and Privacy, among others.

January 30, 2024

On Tuesday, February 27 at 12:00pm ET, the Nasdaq Center for Board Excellence plans to host a webinar titled, “Cyber Risk and the Board: Trends and Tools in Cybersecurity and Its Oversight.” The panel will discuss what boards need to know about advanced practices, emerging opportunities, and broader trends in the cyber field.

January 29, 2024

The Financial Industry Regulatory Authority (FINRA) released its 2024 Annual Regulatory Oversight Report highlighting several areas of focus including cybersecurity and technology management, artificial intelligence, liquidity and credit risk management, and crypto assets.

January 25, 2024

Q. Cybersecurity oversight is becoming increasingly complex with emerging threats - how can AI be used in cybersecurity controls, and how can cybersecurity controls limit AI risks?

January 24, 2024

The House Financial Services Committee held several hearings to round out 2023 including “Fostering Financial Innovation: How Agencies Can Leverage Technology to Shape the Future of Financial Services” and “Examining the Agenda of Regulators, SROs, and Standards-Setters for Accounting, Auditing.”

January 23, 2024

January 22, 2024

EY plans to hold a webinar titled, “Strategic Perspectives and Insights on Artificial Intelligence for CFOs, Finance Leaders and Board Directors.” The panel, which includes a speaker from the EY Center for Board Matters, will discuss how CFOs, finance leaders and board directors are exploring opportunities for using AI to accelerate transformation and drive sustainable growth.

January 18, 2024

Fuse Research recently released benchmarking data highlighting various aspects of fund boards of Multi-Series Trusts (MST). The Fuse data shows that of the independent directors serving on boards maintained by MST Sponsors, 89% of independent directors serve on a single board.

January 17, 2024

In December, Senator Mark Warner (D-VA) and Senator John Kennedy (R-LA) introduced the “Financial Artificial Intelligence Risk Reduction Act,” which would require the Financial Stability Oversight Council (FSOC) to coordinate financial regulators’ response to threats to the stability of the markets posed by AI.

January 16, 2024

Morgan Lewis plans to host a series covering the global influence of Environmental, Social, and Governance (ESG) considerations by regulators. The five-part series will focus on varying global approaches to ESG regulation including the United States, Europe, Africa & the Middle East, and Asia.

January 11, 2024

Ropes & Gray discusses ESG-related updates to the Glass Lewis 2024 U.S. Benchmark Policy Guidelines. The first part of the series discusses changes relating to board oversight of ESG matters; while the second part of the series discusses amendments relating to board diversity.

January 10, 2024

The Securities and Exchange Commission (SEC) announced that Credit Suisse Securities and two other affiliated entities agreed to a settlement on charges that they provided “prohibited underwriting and advising services to mutual funds.”

January 9, 2024

The Financial Stability Oversight Council (FSOC) released its annual report highlighting its areas of focus in 2023, financial market and regulatory developments, and potential emerging threats to U.S. financial stability. At the meeting, Securities and Exchange Commission Chair Gary Gensler noted, “[w]e continue work regarding proposals on open-end fund liquidity management, including work with bank regulators on potential similar rules for collective investment funds.”

January 8, 2024

EY plans to host a webinar titled “Credit Funds: Valuation," which will explore how alternative credit valuations may be impacted by higher interest rates for a longer period.