On July 14, 2010, the Securities and Exchange Commission
(SEC) voted unanimously to issue a concept release seeking public comments on a
variety of facets of the U.S. proxy system. Termed "proxy plumbing" because of
the extensive nature of its review, the concept release covers the accuracy...
by Marguerite C. Bateman
Late last Friday, the staff of the Securities and
Exchange Commission (SEC) issued guidance on disclosures relating to
investments in derivatives by investment companies. In a letter to the
Investment Company Institute (ICI), the SEC staff shared observations from its
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...
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
Principle one :
Investor protections should...
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...
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
The Securities and Exchange Commission is proposing new
rules and rule amendments under the Investment Advisers...
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 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...
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...
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
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...
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
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 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...
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...
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...
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
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...
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...
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
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
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
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...
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.
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...