Division of Corporation Finance Updates Social Media Guidance
On October 2nd, the Division of Corporation Finance updated Question 141.05 of its Securities Act Compliance and Disclosure Interpretations. The update addresses the use of social media. CDI.
On October 1st, the Securities and Exchange Commission (“SEC”) published a list of alternative trading systems (“ATS”) with registrations effective as of October 1st, 2014.
Municipal Advisor Outreach Seminar
On October 1st, the SEC, Financial Industry Regulatory Authority (“FINRA”), and the Municipal Securities Rulemaking Board (“MSRB”) announced the opening of registration for the first Compliance Outreach Program for Municipal Advisors, which will occur in Chicago on November 3rd, 2014. The event will also be webcast. SEC Press Release. See also Agenda.
On October 1st, Reuters summarized the contentions made by Joseph Stilwell, of Stilwell Value LLC, in a lawsuit he filed against the SEC. Stilwell seeks to prevent the SEC from instituting administrative proceedings against him. Constitutional Questions.
Fee Rate Advisory
On September 30th, the SEC advised that when its fiscal year 2015 began on October 1st, 2014, it was operating under a continuing resolution that will extend until December 11th, 2014. Accordingly, the fees paid under Section 31 of the Securities Exchange Act will remain at their current rate until 60 days after the enactment of a regular appropriation for the SEC. SEC Press Release.
Commissioner Piwowar Discusses Fiduciary Duties
On September 30th, SEC Commissioner Michael Piwowar discussed what should be the appropriate standard of care for those who provide investment advice to retail investors. After reviewing the history of, and literature on, whether a uniform fiduciary duty should be imposed upon broker-dealers and investment advisors, Piwowar suggested an alternative solution, a concise disclosure statement for broker dealers and investment advisers. In developing such a statement, the Commission should institute a testing program to determine what information investors find important and useful in selecting a financial adviser. The Commission could then test formats in which the information can be presented and the effect on investor comprehension of the information. Piwowar