US Congressman to introduce tick spread legislation. US Representative Sean Duff is expected to introduce the Tick Size Flexibility Act of 2013, according to MarketWatch. Under the bill, those companies with annual revenues under US$1 billion could select a 5 or 10 cent tick spread for their share prices. (6/17/2013) Tick spreads.
The JOBS Act and investor protection. The investor protection issues raised by the Jumpstart Our Business Startups Act were the subject of US Congressional hearings last week. CFO.com summarized the witness’ comments. (6/14/2013) Investor protection.
US Congress to hold hearings on money market proposal. According to Financial Advisors Magazine, US Congressman Scott Garrett, who chairs the House Capital Markets Subcommittee, will convene hearings in July on the SEC’s proposed money market rules. (6/14/2013) Hearings.
Canada revises mutual fund prospectus requirements. The Canadian Securities Administrators published amendments to National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101) and related consequential amendments, which will require delivery of the Fund Facts document for mutual funds, instead of the simplified prospectus, to satisfy the prospectus delivery requirements. The amendments are effective June 13, 2013. Early adoption is being encouraged. (6/13/2013) OSC press release.
OSC to hold panel discussion on a statutory “best interest” duty. The Canadian Securities Administrators announced that the Ontario Securities Commission will host a panel discussion on July 23, 2013, to explore the potential benefits and competing considerations of introducing a statutory fiduciary, or “best interest,” standard for advisers and dealers when they provide advice to retail clients. The OSC panel discussion will build on the CSA’s June 18, 2013 and June 25, 2013 roundtable discussions on the subject. (6/12/2013) OSC press release.
OSC seeks comments on derivatives proposals. The Ontario Securities Commission published for comment “OSC Rule 91-506 Derivatives: Product Determination” and “OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting.” These rules will implement Canada’s G-20 commitment to require all OTC derivative transactions to be reported to trade repositories and will provide the OSC with an essential tool to identify and address systemic risk and market abuse. Comments should be submitted on or before September 6, 2013. (6/6/2013) OSC press release.