Insights

Six Patomak Takeaways Regarding 2021 SEC Division of Examinations Risk Alert on Digital Assets

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Patomak expects SEC scrutiny of Digital Assets to grow dramatically in the year ahead, and is well-prepared to help firms respond by applying its deep expertise developing compliance programs, including designing controls, conducting risk assessments, and supporting due diligence to ensure that Digital Asset business activities comply with SEC rules and anti-money laundering (“AML”) regulations.

The SEC’s Six Month Review of Reg BI and Form CRS

The Securities and Exchange Commission and the Financial Industry Regulatory Authority indicated that firms appear to be on the right track with Reg BI and Form CRS compliance, but also offered requirement reminders and observations of industry practices to aid firms in meeting regulatory expectations. Around the rules’ implementation, the SEC’s Office of Compliance Inspections and Examinations and FINRA have been conducting exams to understand and assess how firms are complying with the rules.

The CFTC Votes to Provide Firms More Time and Clarity Around Initial Margin for Uncleared Swaps

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The Commodity Futures Trading Commission (CFTC) voted 5-0 during its open meeting on May 28 to adopt an interim final rule to extend the September 2020 compliance date (Phase 5) for regulatory Initial Margin (IM) , to September 1, 2021.

Upcoming CFTC Meeting may Bring Margin of Relief

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On Thursday, May 28, the CFTC will hold a public meeting to consider extending the compliance schedule for initial margin requirements for uncleared swaps in response to the COVID-19 pandemic, in line with the Global Markets Advisory Committee recent endorsement of subcommittee recommendations.

WSJ Commentary: Leave Broker Disclosures to the SEC

The Securities and Exchange Commission and the Labor Department have both asserted the authority to regulate investment brokers. The two of us—a former SEC commissioner and a former labor solicitor—have a word of advice for Labor concerning its recent efforts to adopt new rules on broker conflicts of interest: It’s time to pass the baton.

Morning Consult: Labor Department Needs to Re-Examine Its Analysis of Fiduciary Rule

Patomak Senior Advisor Craig Lewis writes:As my students are back in lecture halls this fall, they are being reminded that it is more important to complete their assignments properly, rather than quickly.  Mistakes at the beginning invariably lead to disappointing conclusions. That’s a lesson worth repeating to regulators in Washington too. Take, for example, the Department of Labor’s fiduciary rule, which went into partial effect in June with the objective of improving the efficiencies in the market for retirement services upon which Americans rely. The rule’s regulatory impact analysis, produced in April 2016, found that imposing a fiduciary standard on brokers would save Americans billions.

However, as my new white paper shows, the Labor Department’s projections were based on incorrect interpretations of academic research.

Keynote Address: Broker/Dealer Regulation and Enforcement 2016

Over the last eight years, American businesses, investors, and consumers have been buried under a mountain of costly red tape. Now, I do not need to tell you that the economy is not as good as it could be. One of the major reasons is the growth of legislation and consequent regulation emanating from Washington that has stymied growth.