FINRA Issues Sweep Letter Regarding the Use of Social Media

FINRA has followed up on its recent communications rules that reference electronic communications, and its recent regulatory notices providing guidance to the securities industry on social media. FINRA is now conducting a sweep of broker-dealers to determine their compliance with its communications rules. FINRA has posted on its website a targeted examination letter that seeks, among other things:

  • an explanation of how the firm is using social media at the corporate level in the conduct of its business;
  • an explanation of how the firm’s brokers generally use social media in conducting the firm’s business;
  • the firm’s written supervisory procedures concerning production, approval and distribution of social media communications; and
  • an explanation of how the firm monitors compliance with its social media policies.

For additional information, please see our client alert: http://www.mofo.com/files/Uploads/Images/130619-FINRA.pdf.

UK Private Placement Regime and Non-EU Fund Managers

On June 28, 2013, the UK’s Financial Conduct Authority (the FCA) published its Policy Statement on the Implementation of the Alternative Investment Fund Managers Directive in the UK. This Policy Statement sets forth the FCA’s final rules for implementing the EU’s Alternative Investment Fund Managers Directive (the AIFMD) (which must be adopted by July 22, 2013), as well as responding to the feedback it received from its earlier consultation papers. The UK’s HM Treasury has recently clarified how AIFMD will affect alternative investment fund managers, including those based outside the EU, with respect to UK private placements and UK marketing activities.

For additional information, please see our client alert: http://www.mofo.com/files/Uploads/Images/130702-UK-IAFMD.pdf.

Basel Committee Proposes Leverage Capital Framework for Banking Organizations

On June 26, 2013, the Basel Committee on Banking Supervision published a Consultative Document that proposed specific leverage capital requirements, and related disclosure requirements. The proposal would more fully implement the leverage capital provision of the 2010-2011 revised regulatory capital accord ("Basel III"), which was adopted in the wake of the financial crisis. The proposal specifies the elements of the "Exposure Measure" for calculating leverage capital requirements, including detailed provisions relating to derivatives exposures, and credit derivatives in particular.

For additional information, including our observations as to the proposals, please see our client alert: http://www.mofo.com/files/Uploads/Images/130701-Basel-Capital-Framework.pdf.