Global Investment Law Watch – Exploring the legal and regulatory issues affecting the worldwide investment community.

United States: Paper Cut: The SEC “FINALLY” Rethinks E-Delivery

Jul 16 2026

By: Thoreau A. Bartmann and Jennifer L. Klass

On 16 July 2026, the SEC proposed Regulation E-Delivery, a new rule that would make e-delivery the default for how investors receive regulatory information under the federal securities laws. Today, most required information arrives on paper unless the recipient affirmatively consents to electronic delivery. Reg E-Delivery would supersede decades of interpretive guidance built around notice, access, and evidence of delivery, reaching nearly all registrants with a delivery obligation—including advisers, registered funds, broker-dealers, and issuers—and covering nearly all required communications.

Importantly, the rule is optional. It functions as a safe harbor: firms satisfying its conditions are deemed to have fulfilled their delivery obligations, but the rule is not the exclusive means of offering e-delivery.

China: China’s A-Share Market Expands Closing-Price Trading: Implications for Funds and Institutional Investors

Jul 16 2026

By: Chloe Duan and Amigo Lan Xie

Effective 6 July 2026, China’s stock exchanges implemented three significant trading rule changes aimed at improving market quality, enhancing price discovery, and facilitating long-term institutional participation. This is a further step in the continued evolution of China’s capital market microstructure and introduces features that are broadly consistent with practices in more mature international markets.

China: China Announced Proposed Penalties on Cross-Border Securities Business: What Overseas Institutions Should Watch?

Jul 08 2026

By: Chloe Duan and Amigo L. Xie

On 22 May 2026, the China Securities Regulatory Commission announced proposed penalties against several overseas online brokerage firms for cross-border business activities. The regulator stated that their provision of brokerage services to mainland China investors violated China’s laws. Gains from these activities are to be confiscated and penalties imposed.

China: A Real Opening-Up, or Opening-Up With Boundaries? Where Is China’s Capital Market Heading?

Jul 02 2026

By: Chloe Duan and Amigo L. Xie

On 17 June 2026, the Chair of the China Securities Regulatory Commission, Wu Qing, delivered a keynote speech at the Lujiazui Forum, emphasizing China’s continued participation in the global financial markets, as well as its efforts to improve cross-border investment and financing convenience.

United States: Supreme Court Scissors up Saba’s Rescission Argument Under Section 47(b) of the 1940 Act

Jun 11 2026

By: Thoreau A. Bartmann, Varu Chilakamarri, Jennifer R. Gonzalez, Charles M. Ponder, and Steve Topetzes

Background

The Supreme Court agreed to hear FS Credit Opportunities Corp., et al. v. Saba Capital Master fund, et al. to resolve whether Section 47(b) of the Investment Company Act of 1940 (Act) allows private parties to bring lawsuits against registered investment companies to rescind contracts (including corporate bylaws) that allegedly violate the Act.

United States: Supreme Court Holds SEC Does Not Need to Prove Pecuniary Loss in Disgorgement

Jun 11 2026

By: Thoreau Bartmann, Meghan Flinn, and Steve Topetzes

On 4 June 2026, the Supreme Court unanimously decided Sripetch v. SEC, ruling that the SEC does not need to prove that victims of a securities law violation suffered pecuniary loss to obtain disgorgement.

United States: Show Me the Money: SEC Risk Alert Highlights Advisers’ Economic Conflict

Jun 11 2026

By: Thoreau Bartmann, Jennifer Klass, Pablo Man, and Keri Riemer

On 9 June 2026 the SEC Division of Examinations published its second risk alert since Atkins became chair. The Risk Alert reminds investment advisers of their fiduciary obligation to disclose economic conflicts of interest that might cause advisers and their financial professionals to recommend certain products, services, or account types. Citing the SEC’s fiduciary interpretation from 2019 and longstanding examination priorities, the Risk Alert identifies the following areas of concern:

United States: SEC’s Updated Qualified Client Standards Take Effect 29 June 2026

May 29 2026

By: Sasha Burstein, Pablo J. Man, Mark T. Heine, Edward T. Dartley, and George Zornada

The United States Securities and Exchange Commission’s (SEC) inflation adjustment to the qualified client thresholds under Rule 205-3 of the Investment Advisers Act of 1940 will become effective on 29 June 2026, and will carry important implications for SEC-registered investment advisers (RIAs) that charge performance-based compensation tied to capital gains or investment appreciation.

United States: The SEC Finally Admits It, The No-Admit/No-Deny Policy Is Gone

May 19 2026

By: Thoreau Bartmann, Meghan Flinn, Ted Kornobis, Hayley Trahan-Liptak, and Neil Smith

On 18 May 2026, the United States Securities and Exchange Commission (SEC) rescinded the rule barring settling defendants from publicly denying the agency’s allegations. The policy, in place since 1972, effectively silenced settling defendants on pain of having their cases reopened. Now, defendants can publicly dispute SEC allegations, including under existing consent judgments.

United States: Keeping Up Tradition: Director Woodcock’s Signals a Continuation of Recent Enforcement Priorities

May 18 2026

By: Meghan E. Flinn, Hayley Trahan-Liptak, Thoreau A. Bartmann, and Steve G. Topetzes

One week into the role, new Securities Exchange Commission (SEC) Enforcement Director David Woodcock used his first public remarks to reinforce the enforcement tone set by Chairman Atkins: “quality over quantity” and “back to basics.”