Amid escalating global tensions and geopolitical uncertainties, numerous bills are being researched and proposed to minimize the impact to United States financial markets.
SEC v. Jarkesy: Navigating Changes to the Regulatory Landscape
The Securities and Exchange Commission (SEC) has recently released new or updated rules related to three key areas for asset managers: short positions, securities lending, and beneficial ownership. All three final rules were issued in October of this year with effective dates of early 2024.
On August 23rd, the Securities and Exchange Commission (SEC) approved new rules aimed at improving the operations of private fund advisers and updating compliance regulations for investment advisers. Despite facing some resistance from firms, the SEC has asserted that these rules offer several benefits to investors when implemented.
SEC Proposes Changes to Current Custody Rule
In February 2023, the SEC proposed expansive changes concerning Safeguarding Advisory Client Assets (Safeguarding Proposed Rule), which would amend rules around the custody of client funds or securities. Under Rule 206(4)-2, investment advisers must safeguard client funds and securities in their possession or where they have the authority to obtain control of them. The proposed rules would make broad and significant changes to the current custody rule, enhancing the role of custodians and increasing compliance burdens on advisory firms.
SEC Releases 2023 Examination Priorities
The SEC releases its examination priorities every year to provide insight into potential risk areas that might impact investors. Along with the usual focus on compliance with policies and procedures, client suitability standards, etc., the SEC also highlights specific industry concerns related to the current landscape and new or updated regulation.
Preparing for Accelerated Trade Settlement Cycles
The SEC has finalized rules that will further shorten the settlement process for security transactionsfrom two business days to trade date (T+2) to (T+1). A previous change from T+3 to T+2 took place in 2017.