The SEC’s Busy Rule-Making Agenda

In many instances, the Dodd-Frank Wall Street Reform and Consumer Protection Act merely set a framework for financial reform and left much of the heavy lifting to the financial regulatory agencies. The SEC published their agenda for the implementation of Dodd-Frank . It is a long list. Compliance...

Commissioner Aguilar Details Guiding Principles for the SEC

As the SEC continues to implement the Dodd-Frank Act, Commissioner Luis Aguilar outlined five key principles to guide the deliberations and actions of the agency. "An Insider's View of the SEC: Principles to Guide Reform," available here . Principle one : Investor protections should...

Securities and Exchange Commission’s FY 2010 Performance and Accountability Report

In June 2010, the SEC approved a new strategic plan for its fiscal years 2010 - FY 2015 . The plan set out the agency's mission, vision, values, and strategic goals. It also had a detailed list the outcomes the SEC wanted to achieve and the performance measures that will be used to gauge the...

Proposed Changes to Form ADV

The SEC has released its proposed changes to Form ADV to better deal with private fund registration and the exempt, but reporting required of venture capital funds: Release No. IA-3110 The Securities and Exchange Commission is proposing new rules and rule amendments under the Investment Advisers...

The SEC Defines Venture Capital

The SEC is moving much faster in releasing proposed rules after the SEC Open Meetings. After Friday morning's open meeting discussing the exemption from registration for venture capital funds, the SEC has released the full text of the proposed rule merely several hours later. I have been waiting...

Sutherland Alert: CFTC Issues Sixth Series of Proposed Rules Under Dodd-Frank Including Rules to Further Define Swap Entities December 2, 2010

by The Sutherland Regulatory Reform Task Force Team The Commodity Futures Trading Commission (CFTC) issued its sixth series of proposed rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) at an open meeting held yesterday, Wednesday, December 1, 2010. The proposed...

More Information on Part 2 of Form ADV

In October 2010, the Securities and Exchange Commission created a new Part 2 for Form ADV. Instead of filling in blanks, investment advisers need to create a brochure for delivery to clients and prospective clients. For fund managers getting ready to register, that means writing a brochure, not just...

The SEC Overhaul

On July 11, 2011, the President issued Executive Order 13579 , "Regulation and Independent Regulatory Agencies," which states that independent regulatory agencies should promote the goals set forth in Executive Order 13563 of January 18, 2011 that applies to executive agencies. He is asking...

Shut the SEC and Start Over

I was particularly interested in William D. Cohan's recent piece for Bloomberg, " Big Reason to Shut SEC, Start Over. " Certainly, recent reports show the SEC to be less than effective regulators of Wall Street -- whether it's lazy, inept or worse -- but the agency has been problematic...

Legislation to Revamp the SEC

Two legislative proposals which would reorganize the SEC and impact the manner in which regulations are enacted are pending before the House Financial Services Committee. These proposals were considered at a hearing last week entitled "Fixing the Watchdog: Legislative Proposals to Improve and...

The Echoes of Madoff at the SEC

The Madoff scandal is one of the low points in the history of the Securities and Exchange Commission. Every Congressional hearing or SEC-basher inevitably uses the failure to catch Madoff as evidence of the ineffectiveness of the SEC. In a continuing journey down the rabbit hole, the SEC's...

The SEC and Rating Agencies

The SEC examined all 10 firms registered Nationally Recognized Statistical Rating Organization (.pdf 23 pages) and found all 10 had "apparent failures". The SEC has requested remediation plans from each of the agencies within 30 days and is continuing its investigation. The issues found...

Cadwalader Clients & Friends Memo: The SEC Approves Final Version of Form PF

The Securities and Exchange Commission (the " SEC ") held an open meeting on Wednesday, October 26, 2011, regarding the adoption of a rule requiring certain registered investment advisers to hedge funds and other private funds to report information on Form PF for use by the Financial Stability...

Form PF and Private Funds

In addition to filing Form ADV with the SEC when they register with the Securities and Exchange Commission, private fund managers will also need to start filing Form PF next year. The amount of information required by Form PF is tiered. Advisers managing less than $150 million in private funds...

The Commissioners Speak at “SEC Speaks”

Each year at the program "SEC Speaks," the Commission's and staff gather to discuss recent events at the agency and future directions. Comments by the Commissioners this year recapped past events and raised important issues for future discussion. Chairman Schapiro reviewed recent...

The SEC’S New Approach to Economic Analysis in Rule Writing

Economic analysis in rule making has become a critical issue for the SEC. The D.C. Circuit has rejected two Commission rules in recent years, expressing concern about the level of analysis. The Office of the Inspector General issued a report earlier this year which considers cost benefit analysis...

SEC - Where is the Public Good?

Jesse Eisinger posted a very good piece on the SEC and ratings agencies today ( SEC keeps the Ratings Game Rigged ). He writes about the Egan-Jones case, "This is your S.E.C., folks. It courageously assails tiny firms, and at the pace of a three-toed sloth. And when it goes after its prey, it's...

SEC LOSES TWO KEY ISSUES IN THE ELEVENTH CIRCUIT

The Commission suffered a significant loss in a recent decision by the Eleventh Circuit Court of Appeals. The Court constricted the reach of Exchange Act Section 10(b) and tightened the standards for issuing an injunction, precluding "obey the law" orders which have long been a staple of SEC...

Court Tosses Madoff Investors' Lawsuit Against SEC

Despite the 'regrettable inaction' by the Securities and Exchange Commission ("SEC") in failing to detect Bernard Madoff's historic $65 billion Ponzi scheme, a federal appeals court ruled that those victimized by Madoff's fraud could not hold the SEC accountable for negligence...

Bernie Madoff Investors' Lawsuit Against SEC Tossed By Federal Appeals Court

Despite the 'regrettable inaction' by the Securities and Exchange Commission ("SEC") in failing to detect Bernard Madoff's historic $65 billion Ponzi scheme, a federal appeals court ruled that those victimized by Madoff's fraud could not hold the SEC accountable for negligence...

The New SEC Chair Charts a Course for the Agency

Commentators have speculated since the appointment of Mary Jo White as SEC Chair that there would be a new emphasis on enforcement. Ms. White's remarks during her Senate confirmation hearings about unrelenting enforcement bolstered that view. Yet her recent remarks suggest perhaps another focus...

Where Will the New Administration Take the SEC?

While the SEC Chair is battling Congress to secure a budget which approaches $2 billion the number of cases being brought by the enforcement program is dwindling. Regardless of what budget Congress actually gives the agency, a critical question will be how the resources are used and by what standard...

Could the SEC Become Irrelevant?

New SEC Chair Mary Jo White many well be facing an early test of her leadership. The battle ground could be money market reform. The stakes are high - the SEC could find itself becoming less than relevant in a critical corner of the markets. Treasury Secretary Jacob Lew testified regarding the...

Obama Nominates Two New SEC Commissioners

President Obama last week nominated two senior US Senate aides to replace one Democratic and one Republican commissioner of the Securities and Exchange Commission. As we know, there are 5 commissioners, two from each party and then the fifth is a chair from the party of the sitting President. Obama...

The Stature of the SEC is Rising, But Business Ethics are Sinking

Another survey presents significant questions regarding the state of ethics on Wall Street and, in particular, the financial services industry. A significant number of those who responded to a new survey stated that the rules might have to be broken to be successful, that their company may have engaged...