The Securities and Exchange Commission (“SEC”) will hold an open meeting on July 23, 2014 where it is expected to consider whether to adopt amendments to certain rules under the Investment Company Act of 1940 that govern the operation of money market funds and related amendments to Form PF under the Investment Advisers Act of 1940. The Commission will also consider whether to issue a related notice of proposed exemptive relief. Separately, the Commission will consider whether to (i) re-propose amendments to the principal rule under the Investment Company Act of 1940 that governs the operation of money market funds to address provisions that reference credit ratings and (ii) propose an amendment to the diversification provisions in that rule. Open Meeting Notice.
On July 17th, Reuters discussed the SEC’s high-frequency trading investigation, noting the depth and breadth of the Commission’s focus. HFT Investigation.
On July 17th, Bloomberg reported that the SEC’s investigation into possible insider trading emanating from the House Ways and Means Committee involves 44 entities, including hedge funds and other investment advisors. In -House Information.
On July 16th, Reuters summarized the remarks of Kevin Goodman, head of the Office of Compliance Inspections and Examinations’ broker-dealer unit. As the Commission considers its 2015 examination priorities, mutual fund sales practices and variable annuities will be at the top of the list. Goodman Comments.
The FSOC and Money Market Funds
On July 15th, DealBook discussed the Financial Stability Oversight Council’s possible response to the SEC’s expected adoption of new rules for money market funds. Response.
Commissioner Piwowar Discusses the FSOC
On July 15th, SEC Commissioner Michael S. Piwowar gave a speech in which he expressed concern over the Financial Stability Oversight Council’s lack of transparency and the dominant role played by the Federal Reserve Board. Piwowar Remarks.