- On June 14, 2013, the Securities and Exchange Commission announced the promotion of Amelia A. Cottrell to Associate Regional Director for Enforcement in the agency’s New York Regional Office.
- On June 3, 2013, the Securities and Exchange Commission Chair Mary Jo White announced that she has appointed Robert E. Rice as her Chief Counsel.
B. GENERAL NEWS
- SEC Proposes Money Market Fund Reforms
On June 5, 2013, the Securities and Exchange Commission voted unanimously to propose rules that would reform the way that money market funds operate in order to make them less susceptible to runs that could harm investors. The SEC’s proposal includes two principal alternative reforms that could be adopted alone or in combination. One alternative would require a floating net asset value (NAV) for prime institutional money market funds. The other alternative would allow the use of liquidity fees and redemption gates in times of stress. The proposal also includes additional diversification and disclosure measures that would apply under either alternative. The public comment period for the proposal will last for 90 days after its publication in the Federal Register.
- SEC Warns Investors About Binary Options and Charges Cyprus-Based Company with Selling Them Illegally in U.S.
The SEC and the Commodity Futures Trading Commission issued a joint Investor Alert to warn investors about fraudulent promotional schemes involving binary options and binary options trading platforms. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements and may be engaging in illegal activity.
- SEC Renames Division Focusing On Economic and Risk Analysis
The Securities and Exchange Commission announced that it has changed the name of its Division of Risk, Strategy, and Financial Innovation to better reflect its core responsibilities and focus. Starting today, it will be called the “Division of Economic and Risk Analysis.”
- SEC, FINRA Warn Investors About Pump-And-Dump Stock Spam
On June 12, 2013, the SEC and the Financial Industry Regulatory Authority issued a warning to investors about a sharp increase in e-mail linked to “pump-and-dump” stock schemes. The investor alert entitled “Inbox Alert – Don’t Trade on Pump-And-Dump Stock E-mails” notes that the latest McAfee Threats Report confirms a steep rise in spam e-mail linked to bogus “pump-and-dump” stock schemes designed to trick unsuspecting investors. These false claims could also be made on social media such as Facebook and Twitter as well as on bulletin boards and chat room pages.