Insights

Fund Valuation Comes Into Focus

The COVID-19 pandemic has muddied many waters. There is more uncertainty than ever about school, work, life in general. That’s why a recent proposal from the Securities and Exchange Commission was such a breath of fresh air, even though it’s entirely unrelated to the pandemic. In fact, the agency has been working on providing clarity on fair valuation – how fund boards or their advisers value some portfolio securities – for years. The proposal brings welcome clarity to a complex area of fund governance and, particularly as a mutual fund independent director, I’m grateful for the SEC’s initiative.

Investment News Opinion: SEC Should Accelerate its Late Leap to Electronic Delivery

Paul Atkins writes in an opinion piece in Investment News that the SEC could do more to make e-delivery the default option for shareholder communications, while preserving shareholders’ right to request printed material.

Investment News: Financial Industry Opponents Remain Wary of SEC’s Crackdown on Share-Class Disclosure

“The SEC conducted a campaign of regulation through enforcement that leaves more questions than it answers,” Paul Atkins, chief executive of Patomak Global Partners, said in a statement. “The Commission lost a lot of credibility by browbeating advisors through make-it-up-as-you-go disclosure requirements and never-before-enunciated duties imposed on an entire industry.”

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By: Patomak Global Partners

Law360: End Big Game Trophy Hunting in Delaware and Other American Courts

While Delaware’s hunters are focused on deer and duck this fall, it appears that other hunters pursuing a highly valued legal prize in the state might be coming up empty handed this season.

Delaware Federal District Court Judge Richard Andrews in an August 2019 merger case, Scott v. DST Systems, Inc. et al, rejected plaintiffs’ request for payment of their fees, ruling that the lawyers did not produce a “substantial benefit” to shareholders.

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By: Paul Atkins

Investment News: Brokerages Won’t Know Bite of Reg BI Until Enforcement Begins

Paul Atkins shared his view with Investment News reporter Mark Schoeff about any parallels between two recent SEC initiatives, “Perhaps there is parallel in that firms under [the share-class selection disclosure initiative] and Reg BI still do not have clarity on the SEC's view of the law regarding how to comply, but the crucial distinction is that Reg BI is a brand new, duly adopted rule that will be fleshed out over the coming months, just like any other newly adopted rule, while SCSD is simply imposing new regulation through enforcement without the legally required opportunity for dialogue with the public.”
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By: Patomak Global Partners

Federalist Society Podcast: Agency Staff Regulatory Guidance

Agency staff regulatory guidance, speeches, and settled enforcement actions can be helpful to the regulated community when seeking to comply with the law; but when agencies use those statements as if they are the law, thereby bypassing the Administrative Procedures Act, such actions can take the regulated by surprise and run afoul of due process. Tune in to the full podcast to hear the discussion moderated by Paul Atkins.
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By: Patomak Global Partners

The Hill: Yet Another Festering Regulatory Problem Growing in Washington

In a joint opinion piece in The Hill, Peter Wallison of American Enterprise Institute and Paul Atkins of Patomak Global Partners write, “It is much more equitable, more investor focused, and a better use of federal resources for a regulatory agency to provide clear and forward looking guidance or rulemaking on an issue, particularly one that has been festering for years.”

Wall Street Journal Letter to the Editor: The SEC Should Follow Its Own Rules for Guidance

Paul Atkins writes in a Wall Street Journal letter to the editor: “Even novice students of due process understand that guidance provided in 2018 cannot be used in cases citing actions taken before that time.”
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By: Paul Atkins

ThinkAdvisor: Reg BI Footnote Justifies Pausing SEC Share Class Disclosure Initiative

Footnote 60 reveals an agency that is seeking to paper the record after failing to make its expectations clear around 12b-1 fees.
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By: Patomak Global Partners

Investment News: Critics concerned with pending second wave of SEC share-class crackdown

Paul Atkins, former SEC commissioner, wants the agency to halt its share-class initiative because it is establishing a new disclosure standard through enforcement rather than a regulation. He said it is unfair because the industry didn't have a chance to adjust.
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By: Patomak Global Partners