On December 22, 2020, the Securities and Exchange Commission voted to propose amendments to Rule 144 under the Securities Act of 1933 (the Securities Act) relating to tacking of holding periods for certain “market-adjustable securities.”
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SEC Announces Proposed Amendments to Rule 701 and Form S-8
On November 24, the Securities and Exchange Commission voted to propose amendments (the Proposal) to (1) Rule 701 under the Securities Act of 1933, as amended (Securities Act), which exempts certain compensatory equity offerings by non-reporting issuers from registration under the Securities Act, and (2) Form S-8, which is a registration statement form available for compensatory securities offerings by reporting issuers. …
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FINRA Announces Updates to Interpretations of Margin Rule Regarding Control and Restricted Securities and Consolidation of Accounts
On July 2, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-22 (the Notice) announcing updates to its interpretations regarding (1) FINRA Rule 4210(e)(8), which specifies margin requirements for control and restricted securities, and (2) FINRA Rule 4210(f)(5), which specifies conditions for the consolidation of two or more accounts carried for the same customer.…
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SEC Raises Filing Threshold of Rule 17h Reporting Requirements for Broker-Dealers
On June 29, the Securities and Exchange Commission issued an order raising the filing threshold for broker-dealers’ Form 17-H filings made pursuant to the Securities Exchange Act of 1934 Rules 17h-1T and Rule 17h-2T. …
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FINRA Releases White Paper on Artificial Intelligence
According to the Financial Industry Regulatory Authority (FINRA), financial institutions are allocating significant resources to developing applications that use artificial intelligence (AI) to offer innovative products, increase revenues, cut costs and improve customer service. …
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LIBOR Transition Best Practices Statement Issued by ARRC
On May, 27, the Alternate Reference Rate Committee (ARRC) that works under the auspices of the Federal Reserve Bank of New York issued a set of “Best Practices for Completing Transition Away from LIBOR.” The Best Practices reinforce the ARRC’s position that markets should cease using the London Inter-bank Offered Rate (LIBOR) as a reference rate in financial transactions well before the December 31, 2021 end date identified by UK regulators by providing specific dates by which specific products should be LIBOR-free.…
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ESMA Publishes Consultation Paper on Draft ITS under Regulation on Cross-Border Distribution of Funds
On March 31, the European Securities Markets Authority (ESMA) published a consultation paper on draft implementing technical standards (ITS) under the Regulation on the cross-border distribution of funds (the Consultation Paper).…
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SEC Amends Disclosure Rules for Registered Debt Offerings
On March 2, the Securities and Exchange Commission adopted amendments to the financial disclosure requirements for registered debt offerings involving subsidiary guarantees and other credit enhancements. …
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SEC Approves Amended Rule Change to FINRA Rule 5110
On December 23, 2019, the Securities and Exchange Commission approved the Financial Industry Regulatory Authority’s (FINRA) proposed amendments to Rule 5110, as modified by Partial Amendments No. 1 and No. 2 (Amended Rule 5110), on an accelerated basis in an effort to modernize, simplify and streamline the rule. …
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SEC Announces Proposed Amendments to Modernize Auditor Independence Rules
On December 30, 2019, the Securities and Exchange Commission voted to propose amendments (the Proposal) to its auditor independence rules, many of which have not been updated since their initial adoption in 2000 and amendments in 2003. …
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