Featured Product

    SEC Chairman on Completing Mandates of Dodd Frank Rulemaking

    January 22, 2018

    During the opening remarks at the Securities Regulation Institute in Washington DC, the SEC Chairman Jay Clayton discussed the expectations for market professionals when dealing with new products or new forms of old products, specifically in the Initial Coin Offering (ICO) space. He also talked about the SEC approach to the remaining Dodd-Frank rulemaking mandates.

    The SEC Chairman said: "Market professionals, especially gatekeepers, need to act responsibly and hold themselves to high standards. To be blunt, from what I have seen recently, particularly in the initial coin offering (ICO) space, they can do better." He mentioned that he has, "... instructed the SEC staff to be on high alert for approaches to ICOs that may be contrary to the spirit of our securities laws and the professional obligations of the U.S. securities bar. " He also raised a legal issue in the area of distributed ledger or "blockchain" space: "I doubt anyone in this audience thinks it would be acceptable for a public company with no meaningful track record in pursuing the commercialization of distributed ledger or blockchain technology to (1) start to dabble in blockchain activities, (2) change its name to something like "Blockchain-R-Us," and (3) immediately offer securities, without providing adequate disclosure to Main Street investors about those changes and the risks involved. The SEC is looking closely at the disclosures of public companies that shift their business models to capitalize on the perceived promise of distributed ledger technology and whether the disclosures comply with the securities laws, particularly in the case of an offering."

    Next, he explained the approach for proceeding with the remaining Dodd-Frank rules, which, according to him, mostly fall into four categories:

    • The remaining rules to stand-up the security-based swap regime. SEC is seeking to harmonize the securities-based swap rules with the CFTC, where appropriate, to increase effectiveness as well as reduce complexity and costs.
    • Executive compensation rules for both public companies and SEC-regulated entities. SEC recently issued interpretive guidance to help companies comply with the new pay ratio rules. This guidance was intended to help companies reduce compliance costs.
    • Specialized disclosure rules, such as resource extraction disclosure. Keeping in mind the challenges in the form of strong and divergent views on how these rules should be approached, he has asked the SEC staff to "craft rules for consideration by the Commission that meet the objectives of Congress" while considering the existing array of procedural and substantive constraints.
    • Mandates for which market developments—including developments resulting from shareholder engagement—mitigated some concerns that motivated the statutory requirements. For example, several companies already have made public their policies regarding compensation clawbacks. Some of these policies go beyond what would be required under Dodd-Frank. A few companies have been observed attempting to claw back compensation from their executives under these policies. SEC rulemaking priorities, as well as the rules themselves, should reflect these observable developments.


    Related Link: Speech

    Keywords: Americas, US, Securities, Initial Coin Offerings, Dodd Frank Act, SBS, SEC

    Related Articles
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425