With Enforcement Action, SEC Shows that Outsourced CCO's Must be Active in Overseeing the Adviser The SEC settled an enforcement action against an outsourced CCO who failed to file timely and accurate reports with the Commission. The action can be found here.
SEC Issues Three No Action Letter Bridge to MiFID II Advisers' Receipt of Research The three letters act to allow (i) the aggregation of orders for the purchase or sale of securities on behalf of clients to satisfy MiFID II (ii) a MiFIMD adviser to pay for research from a MiFID research account along side payments for execution services and (iii) a broker-dealer to be compensated for providing research to a MiFID II Adviser without the payments being deemed special compensation. You can review the three no action letters here: letter one, letter two and letter three.
SEC Chairman Jay Clayton Addresses Regulation of ICOs and Establishing a Bad Actor Database While indicating that the SEC's near term agenda would be shorter than under his predecessors, Chair Clayton indicated that the SEC would be focusing on (i) hidden fees (ii) penny stocks and recordkeeping (iii) unregistered securities transaction processing (iv) online platforms offering initial coin offerings and (v) investor education. Chair Clayton's remarks can be found here.
CFTC, through its LabCFTC Initiative, Issues a Primer on Virtual Currencies The CFTC issued the Primer on October 17, 2017 and it can be found here.
The CFTC Issues an Order Extending Current Swap Dealer De Minimis Threshold to December 2019 Because of this action, the de minimis threshold will remain at $8 billion until December 31, 2019 instead of decreasing to $3 billion on December 31, 2018. The order can be found here.
CFTC issues No-Action Relief for Swap Execution Facilities from Certain Block Trade Requirements The no-action letter states that, subject to certain conditions, the CFTC is extending time-limited relief to SEFs from the “occurs away” requirement under CFTC regulation 43.2 until November 15, 2020, at 11:59 pm EST. You can view the No-Action Letter here.
CFTC Fines Market Participant $4 Million for Attempting to Manipulate a Propane Benchmark (Argus FEI), in an Effort to Benefit the Participant's NYMEX-Cleared Swaps Position The CFTC issued the fine as a result of the participant using the physical propane market to attempt to raise the value of its NYMEX-Cleared Swaps position. While unsuccessful, the participant's attempts to manipulate the benchmark were described repeatedly in communications. The order can be found here.
CFTC Fines Market Participant $10 Million for Providing Inaccurate Mid-Market Marks on Swaps The participant concealed the full mark-up on certain swaps from its counterparties and swap data repository in an effort to avoid revenue decreases. The order can be found here.
OCC Releases Updated List of Permissible Activities The list of permissible activities applies to national banks and federal savings. The updated list can be found here.
Treasury Appoints Kenneth Blanco as new FinCEN Director Mr. Blanco commented that he is " excited to take my 28 years of prosecutorial experience with me to FinCEN". Mr. Blanco was most recently Acting Assistant Attorney General in the Criminal Division of the US Department of Justice. The press release can be found here.
CFPB's Arbitration Agreements Rule Eliminated The CFPB's arbitration rule that would have given consumers the opportunity to file class actions against banks and other financial firms was officially eliminated. President Trump signed a resolution passed by both houses of Congress that nullified the CFPB rule, which was released in July. More information regarding the rule can be found here.
CFPB Releases Principles for Consumer-Authorized Financial Data Sharing and Aggregation The CFPB's guidelines set a standard for how companies, including banks and FinTechs, can access and share sensitive customer information. The consumer protection principles are available here.