Spotlight on Seniors

National Senior Investor Initiative Act of 2023 or the Senior Security Act of 2023

This bill establishes the Senior Investor Taskforce within the Securities and Exchange Commission. The taskforce must report on topics relating to investors over the age of 65, including industry trends and serious issues impacting such investors, and make recommendations for legislative or regulatory actions to address problems encountered by senior investors.

Review the Senior Security Act of 2023.

SEC, NASAA, FINRA co-host webinar on identifying and reporting suspected senior financial exploitation

On June 15 – World Elder Abuse Awareness Day – FINRA co-hosted a webinar with the SEC and NASAA on identifying and reporting suspected senior financial exploitation. The discussion built on the SEC, NASAA and FINRA’s joint training published in 2021 on Addressing and Reporting Financial Exploitation of Seniors and Vulnerable Adult Investors.

View the Events page here to watch the Webcast when it is posted.

SEC unveils new public service campaign encouraging older investors to never stop learning

On June 12, the SEC Office of Investor Education and Advocacy (OIEA) unveiled a public service campaign to encourage older investors to never stop learning when it comes to protecting their hard-earned money and investing for their future.

Read the press release.

SEC

SEC publishes Regulatory Flex Agenda for Spring 2023

The agenda includes a number of proposals due to be finalized, including: climate and other disclosures for corporate issuers; swing pricing/hard close, money market fund reform, ESG disclosures, among others, for asset managers; CAT updates to address data security; and new items including Registration for Index-linked Annuities and Registration of Internet Advisors. The short-term agenda lists priorities for the next 12 months and the long-term agenda lists non-priority items upon which staff may work.

View the SEC short-term agenda.

View the SEC long-term agenda.

SEC Investor Advisory Committee - June 22 meeting

Key items discussed:

• A Recommendation regarding Single-Stock ETFs
• A Recommendation regarding proposed amendments to Regulation 13D-G and proposed rule 10B-1 under the Securities Exchange Act of 1934
• A Recommendation regarding Registered Investment Adviser Oversight

Review the agenda, recommendations and webcast.

Small Business Advisory Committee - June 14 meeting focuses on capital raising and reducing funding gaps for underrepresented founders

The Committee discussed marketplace trends in small business capital raising in the morning session and ways to remedy the funding gaps for underrepresented founders and startups in the afternoon session.

Read the press release.

SEC adopts amendments to remove references to credit ratings from Regulation M

On June 7, the SEC adopted rule changes to remove and replace references to credit ratings from existing exceptions provided in Rules 101 and 102 of Regulation M.

Read the press release.

SEC adopts rules to prevent fraud in connection with security-based swaps transactions and prevent undue influence over CCOs

On June 7, the SEC adopted rules to prevent fraud, manipulation, and deception in connection with security-based swap transactions and to prevent undue influence over the CCO of security-based swap dealers and major SBS Entities.

Review the press release.

DOL

DOL publishes Spring 2023 Regulatory Flex Agenda

The DOL has published its Spring 2023 Regulatory Flex Agenda. Items of note:

• Improving Participant Engagement and Effectiveness of ERISA Retirement Plan Disclosures. The DOL will meet with stakeholders to explore alternatives for improving the understandability and effectiveness of retirement disclosures (the action date was moved to June 2023 for stakeholder meetings). A provision in SECURE 2.0 also requires a review of plan participant disclosures (including fee disclosure) and reporting to Congress within three years). 
• Conflict of Interest in Investment Advice (formerly “definition of the term fiduciary”). Although IRA rollover advice (for a fee) is expected to be included in the new definition, the DOL will also consider other types of advice based on “developments in the investment marketplace, including in the ways advisers are compensated that can subject advisers to harmful conflicts of interest.” Targeting proposed rulemaking by August 2023. 

Review the DOL’s full agenda.

ERISA Advisory Council on Employee Welfare and Pension Benefit Plans – July meeting

On July 17 - 19, the ERISA Advisory Council will hold its 216^th meeting. The meeting will be held in person and virtually, and will cover:

• On July 17 and July 19, there will be testimony from witnesses on the following topics: (1) Long-Term Disability Benefits and Mental Health Disparity, and (2) Recordkeeping in the Electronic Age. Descriptions of these topics, once finalized, will be at https://www.dol.gov/agencies/ebsa/about-ebsa/about-us/erisa-advisory-council.
• On July 18, the DOL will consult with the Advisory Council on the fiduciary standards under ERISA when selecting an annuity provider for a defined benefit pension plan.

Read the ERISA Council Notice.

Digital Assets

House Financial Services Committee - digital asset market structure proposal

On June 2, Patrick McHenry (NC-10), House Financial Services Committee Chair, and Glenn Thompson (PA-15), House Committee on Agriculture Chair, published a discussion draft of legislation for a statutory framework for digital asset regulation intended to provide clarity, fill regulatory gaps, and foster innovation while providing adequate consumer protections.

Read the press release, which includes a link to the draft HFSC bill. 

SEC charges Coinbase for operating as an unregistered securities exchange, broker, and clearing agency

On June 6, the SEC charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.

Review the press release.

SEC seeks emergency relief to ensure Binance.US customers’ assets are protected

On June 6, the SEC filed an emergency action application seeking a temporary restraining order freezing assets, directing defendants to repatriate assets held for the benefit of customers of the Binance.US crypto trading platform.

Read the press release.

FINRA

Regulatory Notice 23-11: FINRA seeks comment on concept proposal for a liquidity risk management rule

On June 12, FINRA published Regulatory Notice 23-11 soliciting public comment on a concept proposal to establish liquidity risk management requirements; the concept proposal describes a potential rule, Rule 4610.

Read the press release.

Cybersecurity Alert: FINRA notifies member firms of CISA Advisory (AA23-165A)

The Cyber and Analytics Unit (CAU) within FINRA’s Member Supervision program is highlighting an Advisory issued by the Cybersecurity & Infrastructure Security Agency (CISA) on June 14 to help organizations better understand the tactics, techniques and procedures (TTPs) used by affiliates of LockBit, a prominent ransomware variant.

Read the press release.