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

United States: Mid-Year Prediction Market Report: Uncertainty Prevails Amidst Extraordinary Federal Action

Aug 24 2026

Thoreau A. Bartmann, Tamika P. Bent, Sanjeev Bhasker, Todd S. Fishman, Sarah V. Riddell, and Andrew M. Wright

During the first part of 2026, the US Commodity Futures Trading Commission (CFTC or the Commission) has undertaken a sweeping campaign to protect its asserted exclusive jurisdiction over prediction markets—the markets on which event contracts are traded. This effort includes a set of wide-ranging public remarks by its new chairman outlining a broad regulatory program, a set of lawsuits and case filings across the country, and a series of administrative measures, including proposed rulemakings.

Australia: New Protections in the Superannuation System

Aug 24 2026

By: Daniel Knight and Jocelyn Lau

The Government has announced reforms to strengthen consumer protections and the resilience of the superannuation and financial system. These changes are being made in response to high profile investment failures but may lead to increased compliance costs for providers.

Australia: Net Tangible Asset Requirement Set to Increase for Responsible Entities

Aug 10 2026

By: Daniel Knight and Jocelyn Lau

ASIC has announced that it will increase the net tangible assets (NTA) requirement for responsible entities of registered managed investment schemes (MIS), operators of investor directed portfolio services (IDPS) and corporate directors of retail corporate collective investment vehicles (CCIVs). The changes are set to commence on 1 July 2027.

United States: Dead Rules Walking: The SEC Removes Two Zombie Rules

Aug 06 2026

By: Thoreau Bartmann and Marguerite Laurent

Key Takeaways

On 4 August 2026 the SEC deleted two long dead requirements from its rulebook. SEC.gov | Investment Company Governance Technical Amendments. Specifically, the SEC deleted a requirement that 75% of a fund board be independent and that the board chair be independent, both provisions that had been struck down by a court in 2006, yet were still in the rulebook twenty years later.

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.