SEC

Two of the banks that collapsed in 2023 were subject to a weaker system of investor-disclosure oversight than most public companies, prompting the government watchdog to call for changes.

The Securities and Exchange Commission proposal would eliminate a ban on investment advisors receiving government contracts within two years of making political contributions. The agency says existing laws can address pay-to-play conflicts of interest.

As prospects for the CLARITY Act dim, some agencies are moving to develop their own crypto-related frameworks, but questions remain about how those rules will affect the banking sector and how durable they will be.

Firms are using AI more than ever, but few have adopted clear policies outlining human oversight or how third-party vendors should handle cybersecurity.

The agency says the subprime auto lender pledged the same car loans to several lenders and bond deals at once, leaving investors owed about $945 million.

The Securities and Exchange Commission kicked off rulemaking intended to make it easier for crypto firms to raise money without having to go through the full securities registration process.

An SEC spokesperson attributed the cancellation to an "unforeseen scheduling issue" and said the meeting would be rescheduled "to a later date."

The bill, dubbed the Insider Trading Prohibition Act, sponsored by Sen. Jack Reed, D-R.I., would amend the Securities Exchange Act of 1934 to prohibit certain securities trading and related communications by people who possess material, nonpublic information.

Securities and Exchange Commission Chair Paul Atkins' effort to rein in the agency's bureaucrats is a welcome move. However, hundreds of firms damaged by unconstitutional prosecutions deserve public exoneration.

The American Bankers Association, Bank Policy Institute and Securities Industry and Financial Markets Association submitted comment letters to the Securities and Exchange Commission arguing that a proposed change to Form S-3 eligibility would make it more difficult for some banks to access the capital markets.

The Securities and Exchange Commission agreed to pay $150,000 to crypto exchange Coinbase to settle a Freedom of Information Act lawsuit filed by the company two years earlier.

As the SEC pushes to widen access to private equity, private credit and other alternative investments, Morgan Stanley and Envestnet are among firms that already have funds no longer aimed exclusively at "accredited investors."

On June 30, the SEC asked for public comments on the regulator's proposed amendments to novel ETFs. About a week in, responses tilt to a hard "no thank you."

Securities and Exchange Commission Chair Paul Atkins said tokenized bank deposits are likely to be a reality in 2027, and added that he is working with banking agencies on digital assets and capital requirements.

Whether advisors choose individual stocks or not, the SEC's proposal to allow semiannual reporting rather than quarterly could impact clients' portfolios.

In a recent industry snapshot, the Investment Adviser Association found the average number of data points advisors have to report in annual regulatory filings has nearly doubled to more than 1,000 since 2011.

An employee uploaded customer data to an unauthorized AI app. The bank says it reached the vendor before a model could train on the data.

Regulators must move toward a more workable model that regulates the intermediaries that custody and control assets, not the underlying software. This would actually be the smarter choice, as blockchains provide transparency and thus better compliance than in traditional banking.

Securities and Exchange Commission Chair Paul Atkins said his agency and the Commodity Futures Trading Commission are working together to usher in a friendlier regulatory environment for technology and crypto firms, a marked departure from the interagency dynamic under President Biden.

NASAA's proposal would align state laws with the SEC's marketing rule, eliminating concerns advisors have about running afoul of more local laws as they accept testimonials and reviews.