Governance – Page 2 – Global Investment Law Watch

United States: Volunteer Fire Fighters: CFTC Attempts to Boost Integrity of Voluntary Carbon Credit Derivative Contracts With New Guidance for DCMS

Sep 24 2024

By Cheryl L. Isaac, Matthew J. Rogers, and Benjamin C. Skillin

On 20 September 2024, the Commodity Futures Trading Commission (CFTC) released final guidance regarding the listing of voluntary carbon credit (VCC) derivative contracts on CFTC-registered exchanges known as designated contract markets (DCMs). VCCs are tradable, intangible instruments issued by a carbon crediting program and generally represent the equivalent of one metric ton of carbon dioxide avoided or removed from the atmosphere. As with other commodities, the CFTC does not have regulatory authority over VCCs, but can promulgate guidance and regulations related to derivatives on VCCs.

Australia: Extension of Australia’s AML/CTF Regime to “Tranche-Two” Entities

Sep 24 2024

By: Jim Bulling and Anthony Shorten

On 11 September 2024, the Attorney-General introduced the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (Cth) to the Federal Parliament, following two periods of consultation undertaken by the Department of the Attorney-General, and AUSTRAC over 2023 and 2024.

United States: DOL Fiduciary Rule: The Saga Continues With Eleventh Hour Appeal of Fiduciary Rule Stay

Sep 23 2024

By: Robert L. Sichel and Ruth E. Delaney

In July, two federal district courts in Texas stayed the effective date (slated for 23 September) of the Department of Labor’s (DOL’s) amended fiduciary rule that would define when a financial professional is acting as a “fiduciary” under ERISA by virtue of providing nondiscretionary investment advice to participants in 401(k) plans, IRAs, and similar clients. On Friday 20 September 2024, the DOL informed the courts that the DOL is appealing to the United States Court of Appeals for the Fifth Circuit to reverse the lower courts’ decisions.

United States: Firms Fail to File 13Fs, Fines Follow

Sep 18 2024

By: C. Todd Gibson, Pablo J. Man, and Brian Doyle-Wenger

On 17 September 2024, the SEC announced settled charges against 11 institutional investment managers for failing to file Form 13F. In addition, two of the 11 firms also failed to file Forms 13H as large traders. The penalties ranged from US$175,000 to US$725,000, and in the aggregate exceeded US$3 million combined. However, two firms self-reported and paid no penalties and one firm self-reported Form 13H filing violations and paid no penalties on that portion of the settlement. Furthermore, all of the institutional investment managers made remedial filings covering several years (in one case over 50 such filings).

Australia: ASIC Releases Some Additional Guidance on Greenwashing

Sep 12 2024

By: Jim Bulling and Anthony Shorten

Much of the recent media commentary on greenwashing has revolved around enforcement action taken by ASIC against entities who have misled investors or shareholders. However, there has been less discussion on best practices for entities looking to avoid greenwashing.

United States: Gee, Have You Thought About Your 13G? (New Reporting Compliance Deadlines Start at Month-End)

Sep 10 2024

By: Pablo J. Man, C. Todd Gibson, and Lisa N. Ju

Updated on 26 September 2024

Starting 30 September 2024, the amendments to the Section 13 beneficial ownership rules under the Securities Exchange Act of 1934 (Amendments), as they relate to initial and amended Schedule 13G filings come into effect. The new accelerated deadlines for initial and amendment filings vary by investor type, as follows:

United States: Form N-PORT and Form N-CEN Reporting; Guidance on Open-End Fund Liquidity Risk

Aug 29 2024

By: Jon-Luc Dupuy, Nicholas O. Ersoy, and Jordan A. Knight

On 28 August 2024, the United States Securities and Exchange Commission (SEC) adopted amendments to Rule 30b1-9 under the Investment Company Act of 1940, as amended, and Forms N-PORT and N-CEN (Final Rule). More specifically, the SEC adopted rule and form amendments that will: (1) require certain registered investment companies, including registered open-end funds, registered closed-end funds, and exchange traded funds organized as unit investment trusts but excluding money market funds, that report on Form N-PORT to file such reports on a monthly basis within thirty (30) days after the end of that month (rather than filing no later than sixty (60) days after the end of the fiscal quarter for the three (3) months in such quarter as currently required); and (2) amend Form N-CEN to require open-end funds to report certain information about service providers used to comply with liquidity risk management program requirements, among other technical amendments to the relevant rule and forms.

United States: Child’s Play: Congress Proposes Allowing Sandboxes for AI Within the Financial Services Industry

Aug 07 2024

By Matthew J. Rogers and Maxwell J. Black

A bipartisan group in the US Congress has introduced legislation that aims to foster artificial intelligence (AI) innovation within the financial services industry by creating regulatory sandboxes. This new bill marks a significant step toward a unified, nationwide framework for regulating AI in the financial services industry.

Australia: Recovery and Exit Planning – Is the Superannuation Industry Ready?

Jul 18 2024

By: Claudine Salameh and Tamsyn Sharpe

From 1 January 2025, Prudential Standard CPS 190 (CPS 190) will come into effect for Registrable Superannuation Entity (RSE) licensees. These entities will be required to have detailed recovery and exit plans to support the navigation of events which may threaten their financial viability. Following a recent review of the superannuation industry’s preparedness for the commencement of CPS 190, the Australian Prudential Regulatory Authority (APRA) expressed the urgent need for RSE licensees to ‘consider and develop more robust and effective‘ contingency plans.

Australia: NSW Anti-Slavery Commissioner Proposes a Financial Services Code of Practice to Combat Modern Slavery

Jul 18 2024

By: Jim Bulling and Emre Cakmakcioglu

In May 2024, the NSW Anti-slavery Commissioner (Commissioner) published a Discussion Paper introducing a draft Code of Practice (Code) to reduce modern slavery in the financial services sector. The Commissioner sought feedback on both the Discussion Paper and Code by 15 July 2024.

Tag:Governance