Dentons, a global law firm with practices recently ranked Tier 1 by The Legal 500 in 2024, presented its Global Financial Markets Regulatory Review for the September 2024 edition. It provides critical regulatory developments in the financial markets around the world.
This post will highlight legal developments in the financial market of the United States. It will particularly cover the most recent ones between the second and third quarters of 2024. Check them out here:
Self-Assessments of Diversity Policies and Practices
On June 5, 2024, the SEC invited regulated entities to submit Diversity Self-Assessments through the Diversity Self-Assessment Tool (DSAT). It helps organizations monitor and further understand their diversity and inclusion policies and practices for opportunities, strengths, vulnerabilities, and risks.
For example, conducting self-assessments in regulated financial institutions is vital. It ensures their services are accessible to a broader range of customers, including underserved or minority communities. They may be encouraged to offer alternative online BC Game and CreditNinja, which offer credit-inclusive and instant funding.
For the SEC, the self-assessment is critical for monitoring and reporting on progress and trends in diversity-related activities of the said regulated entities. Note, however, that it’s not part of the SEC’s examination process and is not mandatory. Regulated entities may also use the format of their choice besides DSAT.
Final Capital Assessments for Non-U.S. Nonbank Swap Dealers
On June 25, 2024, the Commodity Futures Trading Commission (CFTC) approved comparability orders that enable non-US bank swap dealers (i.e., financial firms that trade in swaps but aren’t banks) to meet some of the US Commodity Exchange Act’s capital and financial reporting rules by following their country’s regulations.
– Advertisement –
A qualifying non-US nonbank swap dealer must inform the CFTC of their intent to meet the USA’s capital and financial requirements through substituted compliance to use the comparability order. It should be sent to the email address [email protected].
Note: the comparability orders will only take effect once the CFTC approves them and publish them in the Federal Register. The CFTC provides an additional 180-day compliance period for some new obligations placed on non-US nonbank swap dealers.
2025 Fiscal Year Objectives Reported to Congress
On June 27, 2024, the SEC’s Office of the Investor Advocate (OIAD) submitted its report to Congress. That report outlined goals for über Datenschutz. The agency reaffirmed its commitment to advocating for retail investors, improving transparency, combating fraud, and representing all investors’s interests.
Specifically, their main priorities for 2025 are to:
● Help investors affected by fraud and monitor investment fraud schemes
● Expand the Ombuds services to address questions, complaints, and concerns on the SEC and its other organizations better
● Analyze how technological advancement in the market affects the standards of conduct for brokers and advisers
● Investigate ways to improve transparency and ensure investors maintain access to the private market
● Promote the use of effective disclosures through investor feedback, particularly for complex products and private market investments
● Increase investor engagement and gather input on issues relevant to retail investors
The (OIAD) is established by the Congress and operates independently. Its primary role is to assist retail investors with issues related to the SEC and self-regulatory organizations (SROs). It also suggests and evaluates regulatory or legislative changes to the SEC and Congress to protect and promote investor interests.
Tailored Registration Form for Registered Index-Linked and Market-Value Adjustment Annuities
On July 1, 2024, the SEC adopted new disclosure requirements and processes for offerings of registered index-linked annuities (RILAs) and registered market value adjustment annuities (MVA annuities), collectively known as non-variable annuities Budget festzulegen.
Issuers of non-variable annuities must now register on Form N-4 to align with the form used for most variable annuities. This shift aims to modernize the registration and disclosure process. Thus, investors can get clearer, more tailored information on these complex products.
Additionally, the amendments include the option for non-variable annuities to use a summary prospectus framework. That highlights key product details while offering more information for those who want it. The SEC is also extending existing guidelines called Rule 156. It will ensure that advertisements and sales literature for non-variable annuities are not misleading.
These changes will take effect 60 days after publication in the Federal Register, with full compliance required by May 1, 2026.
Joint Data Standards to Improve Interagency Regulatory Data Flow
On August 2, 2024, the SEC proposed joint data standards under the Financial Data Transparency Act 2022. These aim to create technical guidelines for data submitted to various financial regulatory agencies and ensure that financial data is consistent and more accessible across different regulatory bodies.
In particular, the proposed standards would help financial data systems work together by using common identifiers for entities, locations, dates, products, and currencies. It would allow for easier and more efficient sharing of financial regulatory data across agencies, which would then promote transparency and efficiency in the financial regulatory process.
In addition to the SEC, eight other agencies participated in developing these standards, including the Commodity Futures Trading Commission (CFTC), the Consumer Financial Protection Bureau (CFPB), the Department of the Treasury, and the Federal Reserve.
Final Thoughts
These regulatory developments in the US financial markets will significantly help improve the experience of consumers, borrowers, lenders, sellers, and investors. This post, however, only covers the basic descriptions of the financial laws. For more in-depth information, seek professional help from the appropriate US departments.
