SEC Rulemaking

SEC Adopts Private Fund Adviser Rules

On August 23, the SEC adopted new rules and rule amendments regulating private fund advisers and updated the existing compliance rule that applies to all investment advisers. This includes new filing requirements and a new quarterly account statement to shareholders.

The press release, adopting release, and fact sheet are available here.

SEC Adopts Amendments to Exemption from National Securities Association Membership

On August 23, the SEC adopted rule amendments that narrow the exemption from Section 15(b)(8) of the Securities Exchange Act of 1934 for certain exchange members.

The press release, adopting release and fact sheet are available here.

SEC Reopens Comment Period for Proposed Amendments to the Custody Rule for Registered Investment Advisers

On August 23, the SEC reopened the comment period on its proposed rule to update the “custody rule” under the Investment Advisers Act of 1940 for customer assets managed by registered investment advisers.

The press release, proposing release and fact sheet are available here.

Other SEC Actions

SEC Approves Funding Amendment for Consolidated Audit Trail (CAT)

On September 6, the SEC approved an amendment to the National Market System Plan governing the Consolidated Audit Trail (CAT) to adopt a revised funding model, called the “Executed Share Model,” for the CAT and establish a fee schedule for CAT fees for the participants.

The press release, fact sheet and SEC Order are available here.

SEC Orders Equity Exchanges and FINRA to Update Market Data Plans

On September 1, the SEC issued an order directing the equity exchanges and FINRA to file a new national market system plan (NMS plan) to replace the three existing national market system plans that govern the public dissemination of real-time, consolidated equity market data for national market system stocks.

The press release and SEC order are available here.

SEC Publishes Investor Advocate Report on Objectives for Fiscal Year 2024

This report contains a summary of the Investor Advocate’s primary objectives for Fiscal Year 2024 beginning October 1, 2023.

Read the report.

SEC Publishes Agenda for September 21, 2023 Investor Advisory Committee Meeting

The SEC Investor Advisory Committee Meeting will be held on September 21, 2023.

Review the agenda.

Retirement

DoL Request for Information-SECURE 2.0 Reporting and Disclosure

On August 11, the Employee Benefits Security Administration (EBSA) of the DoL published a Request for Information to solicit public feedback and develop a public record for a number of provisions of the SECURE 2.0 Act of 2022.

Review the Request for Information.

DoL – ERISA Advisory Council Meeting

The 218^th open meeting of the Advisory Council on Employee Welfare and Pension Benefit Plans (also known as the ERISA Advisory Council) will be held on September 19-21, 2023.

Review the agenda.

IRS Issues Guidance on Section 603 of the SECURE 2.0 Act with Respect to Catch-Up Contributions

The IRS issued guidance with respect to section 603 of Division T of the Consolidated Appropriations Act, the SECURE 2.0 Act of 2022. Among other changes, section 603 requires that, in the case of certain eligible participants, catch-up contributions under section 414(v)(1) of the Internal Revenue Code must be designated as Roth contributions pursuant to an employee election.

The IRS Notice is available here.

Crypto Assets

Appeals Court Rules Against SEC - Grayscale Bitcoin ETF Application

On August 29, a federal appeals court ordered the SEC to vacate its rejection and review an application to convert the Grayscale Bitcoin Trust into an exchange-traded fund (ETF). Although not required to approve the application, the SEC could approve it, which would be the first spot Bitcoin ETF in the U.S.

Review the court opinion here.

SEC Obtains Emergency Relief to Halt DEBT Box Crypto Asset Fraud Scheme

On August 3, the SEC announced it obtained a temporary asset freeze, restraining order and other emergency relief against Digital Licensing Inc., a Utah-based entity doing business as “DEBT Box,” and against the company’s principals.

The press release is available here.

FINRA Crypto Hub Publishes Podcasts & Blog Posts Providing an Overview of the Hub and Outlining Its Mission

On September 5, FINRA published a podcast from their Crypto Asset Investigations Team about their “role on ensuring compliance with existing rules and regulations in the crypto asset space.”

Podcast.

On August 8, FINRA’s Crypto Hub published the first podcast in a three-part series, featuring Omer Meisel, Senior Vice President of the Complex Investigations and Intelligence Group, Jason Foye, Senior Director and Head of FINRA’s Crypto Hub, and Reema Abdelhamid, a Director with FINRA Enforcement to learn more about the strategy and the role of the Hub.

Podcast.

On August 3, FINRA Crypto Hub published a blog post providing an overview of its crypto work and explaining its core mission, to protect investors and promote market integrity through its critical crypto asset-related regulatory work.

Blog Post.

On November 1, 2022, FINRA shared a podcast, “Membership Application Program: Reviewing and Approving Digital Asset Firms.”

Podcast.