ALJ appointment constitutionality. The recent ruling by US District Judge Leigh May of Atlanta that the US Securities and Exchange Commission’s administrative law judge (ALJ) appointments violate Article II of the Constitution’s Appointments Clause was examined by Reuters. If the SEC changes how it appoints ALJs, it could affect past and present SEC enforcement actions as well as cases at other regulatory agencies. The SEC says that Judge May wrongly defined SEC ALJs as executive branch officers. (6/17/2015) ALJ Appointments. The Wall Street Journalreports on the SEC’s defense of its use of ALJs. (6/21/2015) ALJs.
New rules for insurers possible. Reuters reported that the Federal Reserve Board (FRB) is considering new insurance capital standards that would provide a single benchmark to measure risk in larger insurance firms, but would still be based on current accounting methods and remain state-regulated. This would allow the FRB to compare larger insurance firms with other US or foreign financial firms. (6/16/2015) Insurance Capital Standards.
OSC guidance on peer-to-peer lending. The Ontario Securities Commission (OSC) reported that peer-to-peer lending websites should contact the OSC about securities law requirements and to determine whether they need to file a prospectus. (6/19/2015) OSC news release.
CSA requests comments on proposed amendments on ETF disclosure. The Canadian Securities Administrators (CSA) published for comment proposed amendments that would require exchange-traded mutual funds to produce and file summary disclosure documents to be written in plain language and highlight key information important to investors. (6/18/2015) CSA news release.
OSC publishes strategic plan. OSC published its 2015-2107 OSC Strategic Outlook and 2015-2016 OSC Statement of Priorities. (6/18/2015) OSC news release.
CSA requests comments on proposed amendments to trading rules. The CSA published for comment proposed amendments to the “Companion Policy to National Instrument 23-101 Trading Rules,” which provide an interpretation of the application of the Order Protection Rule in marketplaces that impose a systematic order processing delay. Comments are due by August 17, 2015. (6/12/2015). CSA news release.
Bank of Canada says risk to financial stability up but overall economy improved. The Bank of Canada’s biannual “Financial System Review” noted that the overall risk to financial stability is slightly higher, mostly due to lower oil prices, but that the overall economy is improving. (6/11/2015) Bank of Canada press release.