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James McNamara Named Managing Executive of SEC’s Division of Trading and Markets (2012/5/18)

FOR IMMEDIATE RELEASE 2012-98 Washington, D.C., May 18, 2012 — The Securities and Exchange Commission today announced that James P. McNamara has been named to the newly-created position of Managing Executive of the SEC’s Division of Trading and Markets. Mr. McNamara is currently an Assistant Director in the SEC’s Office of Financial Management. In his new position, Mr. McNamara will be responsible for the administrative and operational aspects of the Division of Trading and Markets, including human resources, budget, information technology, and strategic planning. “The breadth of Jamey’s management experience, including his expertise with respect to managing and improving business processes in the financial, human resources, and IT areas, will be invaluable t ...

James Burns Named Deputy Director in SEC's Division of Trading and Markets (2012/5/17)

FOR IMMEDIATE RELEASE 2012-96 Washington, D.C., May 17, 2012 – The Securities and Exchange Commission today announced that James R. Burns will become a Deputy Director in the Division of Trading and Markets. Mr. Burns will oversee several of the Division’s core regulatory functions, including market oversight and operations, derivatives policy and trading practices, and chief counsel and enforcement liaison functions. He also will contribute to the Division’s ongoing implementation of key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition, Mr. Burns will assist with the overall management of the Division, working closely with the Division’s Director Robert Cook and other Deputy Director John Ramsay. Mr. Burns has been a member of Chairman Mary ...

Erica Williams Named SEC's Deputy Chief of Staff (2012/5/17)

FOR IMMEDIATE RELEASE 2012-97 Washington, D.C., May 17, 2012 – The Securities and Exchange Commission today announced that Erica Williams will become the agency’s Deputy Chief of Staff. Ms. Williams has been a member of Chairman Schapiro’s staff since February 2011, primarily focusing on enforcement and regulatory issues. Prior to that, Ms. Williams served as assistant chief litigation counsel in the Enforcement Division’s trial unit for seven years, leading trial teams in a host of successful prosecutions. “Erica is well-steeped in the securities laws and has a true grasp of the intricacies of the agency,” said Chairman Schapiro. “She also fully embraces the agency’s mission and I am thrilled that she is willing to take on this new responsibility.” Ms. Williams said, � ...

SEC Charges Seattle-Based Fund Manager for Secretly Diverting Client Funds to His Own Start-Up Companies (2012/5/17)

FOR IMMEDIATE RELEASE 2012-95 Washington, D.C., May 17, 2012 – The Securities and Exchange Commission today charged a Seattle-based investment adviser and his firm with defrauding clients by secretly investing their money in two risky start-up companies he co-founded. The SEC alleges that Mark Spangler, a former chairman of the National Association of Personal Financial Advisors, funneled approximately $47.7 million of client money into these private ventures despite representing that he would invest primarily in publicly-traded securities. Spangler served as chairman and CEO of one of the companies, which is now bankrupt. Such risky investments were inconsistent with the investment strategies that Spangler promised his clients and contrary to their investment objectives. Additional Mat ...

SEC Charges New Jersey Man in Real Estate Investment Scam (2012/5/17)

FOR IMMEDIATE RELEASE 2012-94 Washington, D.C., May 17, 2012 – The Securities and Exchange Commission today charged a New Jersey man with operating a Ponzi-like scheme involving a series of investment vehicles formed for the purported purpose of purchasing and managing rental apartment buildings in New Jersey and Pennsylvania. The SEC alleges that David M. Connolly induced investors to buy shares in real estate investment vehicles he created through his firm Connolly Properties Inc. He promised investors monthly dividends based on cash-flow profits from rental income at the apartment buildings as well as the growth of their principal from the appreciation of the property. However, the real estate investments did not produce the projected dividends, and Connolly instead made Ponzi-like d ...

SEC Charges U.S. Perpetrators in $35 Million International Boiler Room Scheme (2012/5/16)

FOR IMMEDIATE RELEASE 2012-93 Washington, D.C., May 16, 2012 — The Securities and Exchange Commission today charged a Hawaii resident and two firms he used to orchestrate a scheme in which he covertly founded small companies, installed management, and recruited overseas boiler rooms that pressured investors into buying their stock while he pocketed more than $2 million in consulting fees from proceeds of the fraudulent stock sales. Additional Materials SEC Complaint The SEC alleges that Nicholas Louis Geranio worked behind the scenes to create eight U.S.-based companies used to raise money through the sale of Regulation S stock, which is exempt from SEC registration under the securities laws because it is offered solely to investors located outside the United States. Geranio handpic ...

SEC Charges China-Based Company and Executive for Concealing Loans to Benefit His Family (2012/5/14)

FOR IMMEDIATE RELEASE 2012-92 Washington, D.C., May 14, 2012 – The Securities and Exchange Commission today charged a China-based natural gas company and an executive for defrauding investors by secretly loaning company funds to benefit his son and nephew while failing to disclose the true nature of the loans. The SEC alleges Qinan Ji, the former CEO who remains chairman of China Natural Gas Inc., coordinated two short-term loans totaling more than $14 million in January 2010. One loan went to a real estate firm co-owned by Ji’s son and nephew through a sham borrower. The other loan went to a business partner of the real estate firm. Ji signed the company’s SEC filings that falsely stated the loans were made to third parties. Ji then lied about the true borrower to China Natural Gas ...

SEC Microcap Fraud-Fighting Initiative Expels 379 Dormant Shell Companies to Protect Investors From Potential Scams (2012/5/14)

FOR IMMEDIATE RELEASE 2012-91 Washington, D.C., May 14, 2012 — The Securities and Exchange Commission today suspended trading in the securities of 379 dormant companies before they could be hijacked by fraudsters and used to harm investors through reverse mergers or pump-and-dump schemes. The trading suspension marks the most companies ever suspended in a single day by the agency as it ramps up its crackdown against fraud involving microcap shell companies that are dormant and delinquent in their public disclosures. Additional Materials List of the 379 Companies Trading Suspension Order Investor Bulletin: Trading Suspensions Microcap companies typically have limited assets and low-priced stock that trades in low volumes. An initiative tabbed Operation Shell-Expel by the SEC's Microc ...

SEC Charges Scotland-Based Firm for Improperly Boosting Hedge Fund Client at Expense of U.S. Fund Investors (2012/5/10)

FOR IMMEDIATE RELEASE 2012-90 Washington, D.C., May 10, 2012 — The Securities and Exchange Commission today charged a Scotland-based fund management group for fraudulently using one of its U.S. fund clients to rescue another client, a China-focused hedge fund struggling in the midst of the global financial crisis. Additional Materials SEC's Order Against Martin Currie Martin Currie agreed to pay a total of nearly $14 million to the SEC and the United Kingdom's Financial Services Authority (FSA) to settle the charges that it steered a U.S. publicly-traded fund called The China Fund Inc. into an investment to bolster the hedge fund. The hedge fund had acquired a significant and largely illiquid exposure to a single Chinese company. Martin Currie directly alleviated the hedge fund's li ...

SEC Charges New York Man With Manipulating Biopharmaceutical Stocks and Conducting Unregistered Sales of Securities (2012/5/9)

FOR IMMEDIATE RELEASE 2012-89 Washington, D.C., May 9, 2012 – The Securities and Exchange Commission today charged a Manhattan resident with carrying out a complex market manipulation scheme in biopharmaceutical stocks after he was kicked out of the brokerage industry for fraud. The SEC alleges that David Blech established more than 50 brokerage accounts in the names of family members, friends, and even a private religious institution. He used those accounts to buy and sell significant amounts of stock in two biopharmaceutical companies in order to create the artificial appearance of activity in their securities so he could maintain their market price and use it to his own financial advantage. Blech, who was previously convicted of securities fraud, also solicited investments for biopha ...

SEC Charges Former Detroit Officials and Investment Adviser to City Pension Funds in Influence Peddling Scheme (2012/5/9)

FOR IMMEDIATE RELEASE 2012-88 Washington, D.C., May 9, 2012 – The Securities and Exchange Commission today charged former Detroit mayor Kwame M. Kilpatrick, former city treasurer Jeffrey W. Beasley, and the investment adviser to the city’s public pension funds involved in a secret exchange of lavish gifts to peddle influence over the funds’ investment process. Additional Materials SEC Complaint The SEC alleges that Kilpatrick and Beasley, who were trustees to the pension funds, solicited and received $125,000 worth of private jet travel and other perks paid for by MayfieldGentry Realty Advisors LLC, an investment adviser whose CEO Chauncey Mayfield was recommending to the trustees that the pension funds invest approximately $117 million in a real estate investment trust (REIT) contr ...

SEC Charges Deloitte and Touche in Shanghai with Violating U.S. Securities Laws in Refusal to Produce Documents (2012/5/9)

FOR IMMEDIATE RELEASE 2012-87 Washington, D.C., May 9, 2012 — The Securities and Exchange Commission today announced an enforcement action against Shanghai-based Deloitte Touche Tohmatsu CPA Ltd. for its refusal to provide the agency with audit work papers related to a China-based company under investigation for potential accounting fraud against U.S. investors. Additional Materials Order Instituting Proceedings According to the SEC’s order instituting administrative proceedings against D&T Shanghai, the agency has been making extensive efforts for more than two years to obtain documents related to the firm’s work for the company, which issues U.S. securities registered with the SEC. The firm is charged with violating the Sarbanes-Oxley Act, which requires foreign pu ...

SEC Charges Movie Producer and Ring of Relatives and Business Partners with Insider Trading (2012/5/8)

FOR IMMEDIATE RELEASE 2012-86 Washington, D.C., May 8, 2012 — The Securities and Exchange Commission today announced charges against a Hollywood movie producer along with his brother, cousin, and three others in his circle of friends and business partners for insider trading in the stock of a company for which he served on the board of directors. Additional Materials SEC Complaint The SEC alleges that Mohammed Mark Amin, prior to a company board meeting, learned confidential information about expanding business opportunities for DuPont Fabros Technology Inc., which develops and manages highly-specialized and secure facilities that maintain large computer servers for technology companies through long-term leases with them. Amin tipped his brother Robert Reza Amin, cousin Michael Mahm ...

SEC Charges Montana-Based Paralegal and Her Father in Insider Trading Scheme (2012/5/7)

FOR IMMEDIATE RELEASE 2012-84 Washington, D.C., May 7, 2012 — The Securities and Exchange Commission today charged a former paralegal at a Kalispell, Mont.-based semiconductor company and her father with insider trading on confidential information about the 2009 acquisition of the company. Additional Materials SEC Complaint The SEC alleges that Angela Milliard wired money to her boyfriend’s brokerage account so she could illegally trade on nonpublic details she learned while working as a legal assistant on Semitool Inc.’s then-secret deal with a Silicon Valley company. She also tipped her father Kenneth Milliard with the confidential information. He then traded on the nonpublic information and tipped his sons, who also made trades. The morning the acquisition was announc ...

SEC Reopens Comment Period for Proposed Amendments to Its Net Capital, Customer Protection, Books and Records, and Notification Rules for Broker-Dealers (2012/5/3)

FOR IMMEDIATE RELEASE Washington, D.C., May 3, 2012 —The Securities and Exchange Commission today announced that it is re-opening the public comment period for proposed amendments to its net capital, customer protection, books and records, and notification rules for broker-dealers. Additional Materials Proposed Rule Reopening Comment Period Submit Comments The proposed rule amendments are designed to update the financial responsibility rules for broker-dealers and make certain technical amendments. The Commission issued the proposed amendments on March 9, 2007, and the public comment period on the proposal closed on June 18, 2007. The Commission did not act on the rule amendments it proposed in 2007. Given economic events, regulatory developments, and passage of time since then, as ...

Squire, Sanders & Dempsey L.L.P. Publications Feed

Workplace View May 2012 (2012/5/17)
Ignoring the Mandatory: Rule 11 Inquiries Under PSLRA (2012/5/13)
Toll Numbers Newsletter (German) (2012/5/8)
Interactive German Newsletter (2012/5/8)
Spanish Legal Update (2012/5/7)
Comentarios Jurisprudenciales (2012/5/7)
IRS Continues Compliance Check Questionnaire Program With Submission of Questionnaires to Issuers of Qualified School Construction Bonds (2012/5/1)
Workplace View April 2012 (2012/4/30)
Refusal to Register Descriptive Neologisms Reiterated (2012/4/29)
MSRB Provides Instructions on Utilizing EMMA for Voluntary Disclosure of Private Bank Loans and Purchases (2012/4/29)
Capital Markets Practice: News Round-Up (2012/4/29)
Annual Review: Fraud & Regulatory Enforcement (2012/4/29)
UK Supreme Court: Fixed Retirement Ages May Be Lawful - But it is Not A Foregone Conclusion (2012/4/25)
Birmingham Commercial Newsletter (2012/4/24)
Applicable Federal Rates and Housing Tax Credit Applicable Percentages for May 2012 (2012/4/22)

SEC.gov Updates: What's New in the Division of Corporation Finance

Facebook IPO Live Blog (2012/5/18)
Facebook makes its debut as a public company on Friday in the most eagerly anticipated IPO of recent years. Click to view a price quote on FB .

Buy Apple, Sprint; Short Amazon: Opinion (2012/5/18)

Shares of Apple and Sprint should rise, and here are some attractive options bets on those two stocks. Click to view a price quote on AAPL . Click to research the Computer Hardware industry.

Stocks Wavers Before Facebook Debut (2012/5/18)

Stocks were wavering Friday as investors awaited Facebook's debut on the Nasdaq and as eurozone troubles continued to threaten market sentiment. Click to view a price quote on FB .

Facebook IPO: God Help Us All (2012/5/18)
Pray that the market and the market makers haven't overreached themselves on this Facebook deal. Click to view a price quote on FB .

Sirius CEO Sells 13 Million Shares Under $2: What's Next? (2012/5/18)

When will his remaining 35 million shares be sold and what effect will it have on the stock? Click to view a price quote on SIRI . Click to research the Media industry.

Jim Cramer on Facebook's Pricing (2012/5/18)
"We need a high price for it to work, but not uncomfortably so -- because that would be a deal hijacked by a frenzied public. Click to view a price quote on FB .
Does US Airways Have AMR in Checkmate? (2012/5/18)
America West has pursued mergers since 2004, while AMR lost interest in mergers after its two failed. Click to view a price quote on AAMRQ.PK .
Facebook IPO to Boost Silicon Valley Businesses (2012/5/18)
Local businesses near Facebook's HQ expect a big boost from the biggest ever tech IPO. Click to view a price quote on FB .
The Five Dumbest Things on Wall Street This Week: May 18 (2012/5/18)
Francesca's Foolishness; Yahoo's CEO Silliness; Best Buy Strikes Out; More Avon Ugliness; GM Unfriends Facebook. Click to view a price quote on FB .

Cramer: Spend Your Money on Google, Not Facebook (2012/5/18)

Facebook is caught in a frenzy and frenzies are bad. Jim Cramer says you are better off buying Google or Apple -- not Facebook. Click to view a price quote on GOOG . Click to research the Internet industry.

Stocks Fall on Weak Manufacturing Data (2012/5/17)

Wall Street continues to slump as a read on manufacturing activity in the Philadelphia region comes in well short of expectations. Click to view a price quote on WMT . Click to research the Retail industry.

Delta Thumbs Nose at its Competitors (2012/5/17)
Delta leads the airline industry in financial metrics and attitude and now has a tentative deal with pilots. Click to view a price quote on AAMRQ.PK .

Cramer: J.C. Penney Is an Unmitigated Disaster (2012/5/17)

New JCP CEO Ron Johnson over promised and under delivered, resulting in a hideous first-quarter report. Click to view a price quote on JCP . Click to research the Retail industry.

Bank of America, Citi and Morgan Stanley Face Downgrade Hit (2012/5/17)

Morgan Stanley could see a 9.8% cut in earnings in the event of a credit downgade. Click to view a price quote on MS . Click to research the Financial Services industry.

Cramer: Facebook IPO Doesn't Mark a Top (2012/5/17)
I have some bad news for you: markets aren't controlled by irony. Click to view a price quote on FB .

NYSE.com News Releases

NYSE Announces First-Quarter 2011 Circuit-Breaker Levels (2010/12/31)
China Gengsheng Materials Inc. (NYSE Amex: CHGS), states that its policy is not to comment on unusual market activity (2010/12/30)
Adeona Pharmaceuticals, Inc., (NYSE Amex: AEN), states that its policy is not to comment on unusual market activity or rumors (2010/12/29)
NYSE Euronext to Host Investor Day on Tuesday, March 8, 2011 (2010/12/29)
Gerova Financial Group Ltd., (GFC), states that its policy is not to comment on unusual market activity or rumors (2010/12/29)
New York Yankees Visit the NYSE to Kick Off 2010 New Era Pinstripe Bowl (2010/12/28)
NYSE Group Inc. Issues Short Interest Report (2010/12/27)
NYSE Amex Issues Short Interest Report (2010/12/27)
Corporate Board Member Names New Editor (2010/12/20)
NYSE Announces Quarterly Changes to the NYSE Family of Indexes (2010/12/17)
The St. Joe Company (JOE), states that its policy is not to comment on unusual market activity or rumors (2010/12/16)
iSoftStone Information Technology Celebrates IPO, FIrst Day of NYSE Trading (2010/12/14)
NYSE to Suspend Trading in The Great Atlantic and Pacific Tea Company, Inc. and Related Securities (2010/12/13)
NYSE Member Firms Report Third-Quarter 2010 Results (2010/12/13)
NYSE Amex Issues Short Interest Report (2010/12/9)

NYSERegulation.com News Releases

NYSE to Suspend Trading in Qiao Xing Mobile Communication Co. and Moves to Delist (2012/5/17)
Proxy Fee Advisory Committee Proposes Recommendations on Proxy Distribution Fees (2012/5/16)
NYSE Amex LLC to be renamed NYSE MKT LLC (2012/5/10)
TGS reaffirms its policy not to comment on unusual market activity (2012/4/19)
NYSE Euronext Statement on Jobs Act Final Passage into Law (2012/4/5)
NYSE Announces Second-Quarter 2012 Circuit-Breaker Levels (2012/3/30)
NYSE Euronext Statement on S. 1933 (2012/3/22)
NYSE Amex to Continue Trading Halt in Common Stock of China North East Petroleum Holdings Limited (2012/3/15)
NYSE to Delist the Common Stock of Horizon Lines, Inc. and File Form 25 with Securities and Exchange Commission (2012/3/1)
NYSE AMEX TO DELIST SECURITIES OF BANKS.COM, INC. (2012/2/13)
NYSE AMEX TO DELIST SECURITIES OF EASTERN LIGHT CAPITAL, INC. (2012/2/8)
NYSE to Suspend CPI Corp. Moves to Remove from the List (2012/2/3)
NYSE to Suspend Trading in Duoyuan Global Water Inc. Moves to Remove from the List (2012/1/25)
NYSE to Suspend Trading in Eastman Kodak Company Moves to Remove from the List (2012/1/19)
NYSE Euronext launches a new website dedicated to Europe’s regulatory revolution in financial services (2012/1/12)

Twitter updates from FINRA / FINRA_News.

FINRA_News: FINRA Enhances BrokerCheck Capabilities - http://t.co/CwOPbIKX (2012/5/16)
FINRA_News: FINRA Enhances BrokerCheck Capabilities - http://t.co/CwOPbIKX
FINRA_News: FINRA Warns Investors of Nutraceutical Stock Scams - http://t.co/F7EEPqKh (2012/5/16)
FINRA_News: FINRA Warns Investors of Nutraceutical Stock Scams - http://t.co/F7EEPqKh
FINRA_News: FINRA Names Robert L. D. Colby Chief Legal Officer - http://t.co/dLfj3mjS (2012/5/7)
FINRA_News: FINRA Names Robert L. D. Colby Chief Legal Officer - http://t.co/dLfj3mjS
FINRA_News: FINRA Sanctions Four Firms $9.1 Million for Sales of Leveraged and Inverse Exchange-Traded Funds - http://t.co/Tdpm2s1A (2012/5/1)
FINRA_News: FINRA Sanctions Four Firms $9.1 Million for Sales of Leveraged and Inverse Exchange-Traded Funds - http://t.co/Tdpm2s1A
FINRA_News: FINRA Statement on Introduction of Investment Adviser Oversight Act of 2012 - http://t.co/72SSCrHf (2012/4/25)
FINRA_News: FINRA Statement on Introduction of Investment Adviser Oversight Act of 2012 - http://t.co/72SSCrHf
FINRA_News: FINRA Hearing Officer Expels Pinnacle Partners Financial Corp. and Bars President for Fraud - http://t.co/2fHAePHx (2012/4/25)
FINRA_News: FINRA Hearing Officer Expels Pinnacle Partners Financial Corp. and Bars President for Fraud - http://t.co/2fHAePHx
FINRA_News: Testimony by Chairman and CEO Richard G. Ketchum Before the Committee on Banking, Housing, and Urban Affairs - http://t.co/OnUBk31s (2012/4/24)
FINRA_News: Testimony by Chairman and CEO Richard G. Ketchum Before the Committee on Banking, Housing, and Urban Affairs - http://t.co/OnUBk31s
FINRA_News: FINRA - Goldman, Sachs & Co. Fined $22 Million for Supervisory Failures Relating to Trading and Equity Research - http://t.co/0akM8Xvt (2012/4/12)
FINRA_News: FINRA - Goldman, Sachs & Co. Fined $22 Million for Supervisory Failures Relating to Trading and Equity Research - http://t.co/0akM8Xvt
FINRA_News: FINRA Foundation Study Finds Most Women Pay More When Using Credit Cards - http://t.co/ReujWLA3 (2012/4/11)
FINRA_News: FINRA Foundation Study Finds Most Women Pay More When Using Credit Cards - http://t.co/ReujWLA3
FINRA_News: FINRA Hearing Panel Fines David Lerner $2.3 Million for Selling Muni Bonds, CMOs at Unfair Prices - http://t.co/z1mYf10B (2012/4/4)
FINRA_News: FINRA Hearing Panel Fines David Lerner $2.3 Million for Selling Muni Bonds, CMOs at Unfair Prices - http://t.co/z1mYf10B
FINRA_News: FINRA Fines Citi International Financial $600,000 and Orders Restitution of $648,000 – http://t.co/SWlVPEZd (2012/3/19)
FINRA_News: FINRA Fines Citi International Financial $600,000 and Orders Restitution of $648,000 – http://t.co/SWlVPEZd
FINRA_News: FINRA Foundation Military Spouse Fellowship Application Period Open From March 1-31 - http://t.co/6IFRaA18 (2012/3/1)
FINRA_News: FINRA Foundation Military Spouse Fellowship Application Period Open From March 1-31 - http://t.co/6IFRaA18
FINRA_News: FINRA Foundation and United Way Announce Over $1.3M to Support Grassroots Financial Education – http://t.co/zZMFQb7R (2012/2/29)
FINRA_News: FINRA Foundation and United Way Announce Over $1.3M to Support Grassroots Financial Education – http://t.co/zZMFQb7R
FINRA_News: FINRA Issues New Investor Alert to Help Investors Understand Their Brokerage Account Statements - http://t.co/BGaurqWx (2012/2/23)
FINRA_News: FINRA Issues New Investor Alert to Help Investors Understand Their Brokerage Account Statements - http://t.co/BGaurqWx
FINRA_News: Remarks by FINRA Chairman and CEO Richard Ketchum From the Global Diversity Leadership Exchange - http://t.co/GzIdrJ3j (2012/2/1)
FINRA_News: Remarks by FINRA Chairman and CEO Richard Ketchum From the Global Diversity Leadership Exchange - http://t.co/GzIdrJ3j

The latest news and publications from IOSCO

Masamichi Kono of Japan FSA to lead IOSCO’s new Board (2012/5/17)

IOSCO/MR10/2012 IOSCO/MR10/2012 Beijing, 17 May 2012 Masamichi Kono of Japan FSA to lead IOSCO’s new Board The International Organization of Securities Commissions (IOSCO) is pleased to announce the appointment today of Mr. Masamichi Kono as Chairman of the new IOSCO Board. Mr. Kono was appointed during the Board’s inaugural meeting at the Annual Conference in Beijing. At the meeting, Mr. Kono gave notice that he would step down from the position in March 2013. The Board elected Greg Medcraft, the Chairman of the Australian Securities & Investment Commission (ASIC), to take over as Board Chair after Mr. Kono stepped down. It was agreed that this transition would take place at the Board meeting in Sydney in March 2013, so that Greg Medcraft would assume the position of Chai ...

The MMoU: Ten years of Enhancing Cross-border Enforcement Cooperation (2012/5/16)

Beijing, 16 May 2012 The MMoU: Ten years of Enhancing Cross-border Enforcement Cooperation The Annual Conference of the International Organization of Securities Commissions (IOSCO) in Beijing marks the 10 th anniversary of the Multinational Memorandum of Understanding [1] , the instrument used by securities regulators to help ensure effective global regulation and preserve and strengthen securities markets around the globe. In Beijing, the MMoU is being hailed as the pre-eminent standard for international enforcement cooperation and information sharing. Established in May 2002, the MMoU has provided securities regulators with the tools for combating the cross-border fraud and misconduct that can weaken global markets and undermine investor confidence. “The MMoU has created a grounds ...

IOSCO Prepares for the Regulatory and Financial Challenges Ahead (2012/5/16)

Beijing, 16 May 2012 IOSCO Prepares for the Regulatory and Financial Challenges Ahead The International Organization of Securities Commissions (IOSCO) opens its Annual Conference public sessions today focusing on the themes of a new financial architecture for the post-crisis era, financial market infrastructures and market integrity, capital markets development in emerging markets, and regulation of commodity futures and financial derivatives. The public conference comes at the conclusion of IOSCO’s private meetings in which important steps were taken to ensure that IOSCO, as the international standard setter for securities markets regulation: · is structured and positioned to continue providing the lead in the development of regulatory standards for capital markets; · ...

IOSCO consults Money Market Fund Systemic Risk Analysis and Reform Options (2012/4/27)

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a consultation report, Money Market Fund Systemic Risk Analysis and Reform Options , which provides a preliminary analysis of the possible risks that money market funds (MMFs) could pose to systemic stability and consults on an exhaustive range of policy options to address those risks. With over US$ 4.7 trillion in assets under management as of third quarter 2011, MMFs account for over 20 percent of the assets of Collective Investment Schemes (CIS) worldwide and are a significant source of credit and liquidity. MMFs’ history of providing daily liquidity and principal preservation have played a significant role in differentiating MMFs from other CIS and have facilitated the use o ...

IOSCO consults on principles of liquidity risk management for CIS (2012/4/26)

The Technical Committee of the International Organization of Securities Commissions has published the consultation report Principles of Liquidity Risk Management for Collective Investment Schemes , which outlines a set of principles against which both the industry and regulators can assess the quality of regulation and industry practices relating to liquidity risk management for collective investment schemes (CIS). Since the outbreak of the global financial crisis, the issue of liquidity has been a major concern for regulators, although the discussions on regulatory reform have focused more on the importance of liquidity in the banking sector rather than in other sectors. However, the asset management sector has specificities to be kept in mind when setting policy recommendations. Good li ...

PFMI and consultation paper (2012/4/16)

CPSS-IOSCO issue new standards for financial market infrastructures The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have today published three documents that promote global efforts to strengthen financial market infrastructures (FMIs): · a report entitled Principles for financial market infrastructures ; · a consultation paper on an Assessment methodology for these new standards; and · a consultation paper on a Disclosure framework for the standards. New and more demanding international standards for payment, clearing and settlement systems, including central counterparties, have today been issued by the CPSS and IOSCO in a report titled Principles for financial market infrastructures . Among ...

IOSCO Publishes Updated Systemic Risk Data Requirements for Hedge Funds (2012/3/23)

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published an updated list of categories of data for the global collection of hedge fund information which it believes will assist in assessing possible systemic risks arising from the sector. The data categories were first published in February 2010 with the first IOSCO hedge fund survey in September 2010. The Task Force on Unregulated Financial Entities (Task Force) has agreed to conduct a second hedge fund survey in September 2012, with responses expected by the end of the year. In support of this the Task Force has reviewed the categories of data used for the first survey and, based on lessons learned and recent legislative developments in the US and Europe, has amended the list of data it w ...

IOSCO consults on exchange traded funds regulation (2012/3/14)

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a consultation report, Principles for the Regulation of Exchange Traded Funds , which examines the key regulatory issues regarding ETFs. It also proposes 15 principles against which both the industry and regulators can assess the quality of regulation and industry practices relating to ETFs regarding investor protection, sound functioning of markets and financial stability. Interest in ETFs has increased worldwide as evidenced by the significant amount of money invested in these types of products. This dynamic growth has drawn the attention of regulators who are concerned about the potential impact of ETFs on investors and the marketplace. To address these concerns, the Consultation R ...

IOSCO consults on oil price reporting agency oversight (2012/3/1)

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a consultation report, Functioning and Oversight of Oil Price Reporting Agencies , which examines the role played by Oil Price Reporting Agencies (PRAs) in the functioning of oil markets, their methods of operation and governance and potential options for future oversight. The Consultation Report is aimed at informing IOSCO’s response to the G20 Leaders’ request in November 2011 that “IOSCO, in collaboration with the IEF, the IEA and OPEC, [ to] prepare recommendations to improve their functioning and oversight to our Finance Ministers by mid-2012.” The report builds on the joint report on Oil Reporting Agencies jointly produced by IOSCO, IEA, IEF and OPEC (IOs ...

IOSCO makes recommendations on OTC derivative mandatory clearing (2012/2/29)

The Technical Committee of the International Organization of Securities Commissions has published a Final Report on Requirements for Mandatory Clearing , which outlines recommendations that authorities should follow in establishing a mandatory clearing regime for standardised OTC derivatives in support of the G20’s Leaders Commitments to improve transparency, mitigate systemic risk and protect against market abuse in these markets. The Report has been prepared by the IOSCO Task Force on OTC Derivatives Regulation in order to provide guidance consistent with the Financial Stability Board’s (FSB) Recommendation 12 in its report on Implementing OTC derivatives Market Reforms . This report asked IOSCO to coordinate the application of central clearing requirements on a product and ...

IOSCO consults on suitability requirements for complex financial products (2012/2/21)

The Technical Committee of the International Organization of Securities Commission (IOSCO) has published a consultation report – Suitability Requirements with respect to the Distribution of Complex Financial Products (Suitability Requirements) – which sets out proposed principles relating to the customer protections, including suitability and disclosure obligations, which relate to the distribution by intermediaries of complex financial products to retail and non-retail customers. The report was prompted by concerns regarding the assessment of customer suitability in relation to the distribution of complex financial products arising out of and in connection with recent market turmoil. It also supports the call by the G20 for action to review business conduct rules.

IOSCO consults on Principles for Ongoing Disclosure for Asset Backed Securities (2012/2/20)

The Technical Committee of the International Organization of Securities Commission (IOSCO) has published a consultation report – Principles for Ongoing Disclosure for Asset Backed Securities (ABS Ongoing Disclosure Principles) – containing principles designed to provide guidance to securities regulators who are developing or reviewing their regulatory regimes for ongoing disclosure for asset-backed securities (ABS). The objective of the ABS Ongoing Disclosure Principles is to enhance investor protection by facilitating a better understanding of the issues that should be considered by regulators in developing or reviewing their ongoing disclosure regimes for ABS. The ABS Ongoing Disclosure Principles were developed as a complement to the Disclosure Principles for Public Offerin ...

IOSCO consults on revised CIS Valuation Principles (2012/2/16)

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a consultation report on Principles for the Valuation of Collective Investment Schemes , setting out principles that can be used to assess the quality of regulation and industry practices concerning the valuation of collective investment schemes (CIS), thereby ensuring that investors are treated fairly.

David Wright appointed as new IOSCO Secretary General (2012/2/13)

The International Organization of Securities Commissions (IOSCO) has today appointed David Wright as its new Secretary General. Mr. Wright will be responsible for leading the work of IOSCO’s General Secretariat in support of the work of the organisation, and it is expected he will take up his position in March 2012. Maria Helena Santana, Chairperson of the Executive Committee of IOSCO, said: “I am delighted to announce the appointment of David Wright as IOSCO’s new Secretary General. David comes to IOSCO with an extensive background in European and international regulatory and political policy through his various leading roles at the European Commission. “I believe that this experience will be an important asset in leading the General Secretariat’s work in he ...

IOSCO publishes principles on suspension of CIS redemptions (2012/1/19)

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published its final report, Principles on Suspensions of Redemptions in Collective Investment Schemes , which contains principles regarding the suspension of redemptions for open-ended collective investment schemes (CIS). The principles reflect a common level of approach and provide standards against which both regulators and the industry can assess the quality of regulation and industry practices concerning suspensions of redemptions. Principles for Suspension of Redemptions of Collective Investment Schemes The principles, which are based on the CIS responsible entities’ basic duty to manage CIS liquidity on an on-going basis so as to avoid suspensions to the extent possible, generally c ...

Mutual Fund Directors Forum - MFDF Forum News Feed

Forum Report on Securities Lending (2012/5/17)

Today the Forum issued a report entitled Practical Guidance for Directors on the Oversight of Securities Lending . Given the significant role of securities lending in today's capital markets, the report provides an overview of securities lending in order to help directors make informed decisions about the programs in their funds, while also highlighting the risks of these programs. In addition, the report includes suggestions for directors as they determine how to oversee securities lending activities and decide what questions to ask the adviser, their portfolio managers and others involved in the process. The full text of the report is available at: http://www.mfdf.org/images/uploads/newsroom/Board_Oversight_of_Securities_Lending_May_2012.pdf

DOL Urged to Allow More Electronic Communications (2012/5/16)

A coalition of 15 trade associations representing the retirement plan community, including employers and retirement services firms, is urging the U.S. Department of Labor to permit broader use of electronic communications to deliver the disclosures to retirement plan participants required by new DOL regulations. In a letter to the DOL's Employee Benefits Security Administration, the coalition urged DOL to pursue a policy that would encourage and facilitate the use of modern electronic forms of communication. "Electronic communication today is no longer the exception, it is the norm," the coalition wrote in its letter. The coalition letter responds to DOL's recently released interim guidance on the use of electronic media, known as Technical Release 2011-03R. Members of the coalition inclu ...

2012 Policy Conference (2012/5/15)

The Forum's annual Policy Conference, held in Washington DC on June 19-20, 2012, brings independent directors together with legislators, regulators, and other industry experts to discuss issues of critical concern to fund directors. Keynote speaker CFTC Commissioner Bart Chilton will speak over dinner the evening of June 19, and SEC Division Director Eileen Rominger will address the group as a featured speaker that morning. This year's conference will explore the following issues of interest to fund independent directors: Board oversight of valuation Effective negotiation techniques Impact of regulation on the industry Economies of scale Board retirement policies Also join us the evening before the Policy Conference (June 18) for a celebration and toast for Allan Mostoff as he retires fro ...

Three SEC Commissioners Disavow IOSCO Report (2012/5/14)

As previously reported , the Technical Committee of the International Organization of Securities Commissions (IOSCO) issued in late April 2012 a report asking for comments on the possible risks money market funds may pose to systemic stability as well as on certain potential policy options to address these risks. The report identified runs on money market funds as a potential systemic risk, and sought comments on potential regulatory options to address the perceived risk. On May 11, 2012, three Commissioners of the SEC issued a public statement noting that the report had been published "without the concurrence of the US Securities and Exchange Commission," and that the report "does not reflect the views and input of a majority of the Commission." The statement went on to state that "a maj ...

Upcoming Webinar - Fund Director Compensation: The MPI Annual Survey (2012/5/11)

On Tuesday, May 15, 2012, the Forum will host a webinar titled: "Fund Director Compensation: The MPI Annual Survey." Management Practice has conducted an annual survey of fund director and trustee compensation for nearly 20 years. Each spring MPI releases its "Survey of Mutual Fund Director/Trustee Compensation and Governance Practices" which provides aggregate data pulled from an extensive search of fund board SAIs, as well other data and information received from survey participants. This webinar will provide highlights from the Spring 2012 survey. For additional information or to register, please click here .

Commissioner Aguilar on Fraud Against Seniors (2012/5/10)

In a recent speech, Commissioner Aguilar expressed concern about the vulnerability of seniors to securities fraud. He is advocating greater federal leadership on this issue, including a federal effort to collect, compile and disseminate data from elder abuse cases nationwide, which can be used by federal and state regulators to help battle financial exploitation. Commissioner Aguilar also advocates for the SEC to do more, including implement Dodd-Frank act requirements to establish and maintain an Investor Advisory Committee to help create an avenue by which seniors could communicate with the Commission. Commissioner Aguilar’s speech can be found on the SEC’s website here: http://www.sec.gov/news/speech/2012/spch031512laa.htm

Schapiro on SEC Economic Analysis (2012/5/9)

On April 17, SEC Chairman Mary Schapiro testified about the SEC's approach to economic analysis in its rulemakings before the House Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs Oversight and Government Reform Committee. Chairman Schapiro noted that "high quality economic analysis is an essential part of SEC rulemaking." She also discussed the difficulties presented by the rulemakings required by Dodd-Frank. Chairman Schapiro discussed the agency's efforts to improve economic analysis, including the creation of the Division of Risk, Strategy and Financial Innovation ("Risk Fin"), noting that the division has 24 economists who assist in economic analysis for rules. Chairman Schapiro then described recent SEC guidance drafted by Risk Fin and the Office ...

SEC Enforcement Summary (2012/5/8)

In a March alert entitled SEC Speaks 2012: An Entrepreneurial and Restructured SEC pledges Proactive Enforcement , the law firm of Weil Gotshal and Manges highlighted recent remarks made by SEC officials at an annual conference called SEC Speaks. The document summarizes remarks from SEC Chairman Mary Schapiro, Director of the Division of Enforcement Robert Khuzami, and other members of the SEC staff. Fund directors may be interested in the remarks of Bruce Karpati, Co-Chief of the Division of Enforcement's Asset Management Unit. Mr. Karpati stated that there were a record number of cases against investment advisers and hedge fund advisers in 2011, and that he expected 2012 to also be "active." Further, he stated that individuals with significant industry experience, including mutual fund ...

Spring 2012 Funds Session (2012/5/7)

On Wednesday, May 30, 2012 from 11:00 - 12:30, KPMG is holding a free session to address concerns facing investment management firms and mutual fund trustees and directors. The May 30 event will begin with a keynote address by Robert Pozen, former Chairman of MFS Investment Management, entitled "the Dynamic Structure of the Fund Industry." A panel of industry executives will also provide their perspective on topics impacting the fund marketplace. Participants may choose to attend the session live in Boston or participate via Webcast. To register, click here: https://www.seeuthere.com/rsvp/invitation/invitation.asp?id=/m2c742-10A5G5SYIMM9Q

Bi-Partisan Congressional Concern Over MMF Reforms (2012/5/4)

In a May 1, 2012 letter to SEC Chairman Mary Schapiro, 33 members of Congress from both sides of the aisle who are former state and local government officials expressed concern about potential money market fund reforms. The letter cautioned that reforms making money market funds less attractive to investors could make capital less available and more expensive for municipalities. In addition, the members reminded Chairman Schapiro that municipalities are also users of money market funds for short term investments, and that these entities find the $1.00 net asset value highly attractive.

IOSCO Report on Money Market Funds (2012/5/3)

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has issued a report asking for comments on the possible risks money market funds may pose to systemic stability as well as on certain potential policy options to address these risks. The report states that money market funds are viewed as "a diversified and safe alternative to bank deposits" and are an important cash management tool for institutions and retail investors. In addition, the report notes that money market funds are important providers of short-term funding to financial institutions, businesses and governments. The report acknowledges that radically shrinking the money market fund industry would leave investors with fewer investment alternatives "and could direct a concentration of asse ...

Joint Forum IDC Release on Money Fund Reforms (2012/5/2)

The Mutual Fund Directors Forum has issued a joint statement with the ICI's Independent Directors Council, to voice their shared concerns about the potential collateral consequences and negative impacts that changes to the fundamental structure of money market funds could have on investors, on capital markets and on the economy in general. Independent directors' oversight role gives them first-hand experience with and knowledge of the impact of regulation on money market funds, the important role of money market funds for their investors, and the importance of money market funds to the U.S. capital markets. The positions taken in the joint statement are consistent with the views that have been expressed previously by both organizations. The joint statement can be found here: http://www.mf ...

Survey of Investor Views on Money Market Reforms (2012/5/1)

Treasury Strategies has released a survey, commissioned by the Investment Company Institute, investigating corporate treasurers' and other institutional investors' views and likely reactions to changing the fundamental nature of money market funds. The authors surveyed more than 200 organizations about how they use money market funds; their views on floating net asset values, capital requirements, and redemption holdback concepts; and how those concepts would change their use of these funds. Estimates based on the survey results indicate that a floating net asset value or a redemption holdback will drive 60 percent or more of institutional assets out of money market funds. The results show that imposition of capital buffers on money market funds will have a much smaller impact on institut ...

Deloitte Paper on Omnibus Challenges (2012/4/30)

Recently Deloitte published a paper entitled, "The Omnibus Revolution, Managing risk across an increasingly complex service model." The paper notes that fund shareholder servicing has been transformed dramatically as increasing numbers of intermediaries serving as fund distribution partners move to provide shareholder subaccounting through an omnibus model. As a result of the shift to intermediary subaccounting, the number of accounts held directly at fund transfer agents has declined, while the number of intermediary servicing relationships has grown. This trend has created a new set of complexities for fund management as funds face an increasingly fragmented network of intermediary service providers that provide both distribution and subaccounting services on behalf of the funds and the ...

Response to Boston Fed Chief Remarks on Money Market Funds (2012/4/27)

A former Federal Reserve attorney, Melanie Fein, has written a letter to Boston Fed chief Eric Rosengren sharply contesting the points he made in a speech in April. Mr. Rosengren's remarks expressed his belief that money market funds pose enough of a risk "to the stability of the financial system that underpins the economy" that reforms are necessary. Ms. Fein's letter challenges the depth of the economic analysis supporting the Boston Fed chief's speech. She makes a number of points in her letter, including the fact that Rule 2a-7 substantially limits the amount of risk that money market funds can incur. Citing the 2010 President's Working Group report on money market funds for support, she notes that eliminating all risks posed by money market funds is not an appropriate policy goal to ...

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