Regulatory Insights - May 2021

LEADERSHIP CHANGES

Gary Gensler confirmed and sworn in as new SEC Chairman on April 17, 2021

• On April 17, former CFTC Chairman Gary Gensler was confirmed and sworn into office as SEC Chairman.
• Read the announcement of Gensler’s confirmation.

On April 19, the SEC announced the appointments of Prashant Yerramalli, Heather Slavkin Corzo, Kevin Burris and Scott Schneider to Gensler’s senior staff.

• These staff members will advise Gensler on matters before the Commission.
• Read the press release.

REGULATORY INITIATIVES

Gensler’s testimony before the House Committee on Financial Services

• On May 6, Chairman Gensler testified before the House Committee on Financial Services and discussed topics including gamification and user experience, payment for order flow, equity market structure, short selling and market transparency, social media, market “plumbing” (clearance and settlement), and system-wide risks.
• Read Gensler’s testimony.

NYSE Rules 451/451A - NYSE oversight of Fee Schedule and Gifted Shares proposals

• In March the SEC published orders on NYSE Rules 451/451A to potentially disapprove both NYSE Petitions.
• In April the NYSE amended its Gifted Shares filing and the SEC opened a new 21-day comment period, which closed on April 28.
• PDF(Opens in new window) 488KBRead the NYSE amended Gifted Shares filing.
• PDF(Opens in new window) 488KBReview the SEC order regarding oversight of the Fee Schedule.
• Access the SEC comment file on NYSE rulemaking.

SEC requests comment on potential money market fund reform options highlighted in President’s Working Group report

• The SEC is seeking comment on potential reform measures for money market funds, as highlighted in a recent report of the President’s Working Group on Financial Markets.
• The SEC stated that public comments on the potential policy measures will help inform consideration of reforms to improve the resilience of money market funds.
• PDF(Opens in new window) 488KBAccess the SEC’s request for comment.
• Review the SEC’s comment file.

DEPARTMENT OF LABOR

Department of Labor announces new guidance on best practices for maintaining cybersecurity

• On April 14 the Department of Labor announced new cybersecurity guidance for plan sponsors, plan fiduciaries, recordkeepers, and plan participants.
• Read the DOL’s press release and guidance.

FINRA

FINRA issues its 2021 Examination and Risk Monitoring Program report

• This year’s FINRA exams will focus on broker-dealer filings of suspicious activity reports (or SARs), technology governance, and communications about digital assets, in addition to Regulation Best Interest.
• Download the entire report.

Recent podcast featuring senior FINRA management

• The April 6, 2021 FINRA podcast features senior FINRA management. “Exam and Risk Monitoring Program: Responding to COVID-19 and Looking Ahead.”
• It is “likely” account intrusions, takeovers and data breaches will be SAR reportable.
• FINRA is focused on customer service during platform outages.
• FINRA will assess whether risks tied to digital assets are being properly disclosed.
• Listen to the podcast.

OTHER ITEMS

SIFMA, ICI and DTCC leading effort to shorten U.S. securities settlement cycle to T+1

• On April 28, the Securities Industry and Financial Markets Association (SIFMA), the Investment Company Institute (ICI), and The Depository Trust & Clearing Corporation (DTCC) announced their collaboration to accelerate the U.S. securities settlement cycle from T+2 to T+1.
• The organizations are outlining key steps to shorten the cycle for secondary market transactions, identifying priority issues that need to be addressed and conducting the necessary due diligence and resolution of these critical issues.
• Read the press release.

This newsletter is not intended as legal advice. Broadridge recommends you contact your legal counsel for a complete understanding of the information contained in this publication.