The US Securities and Exchange Commission recently proposed new rules and amendments relating to initial public offerings by special purpose acquisition companies and to business.
How SPACs Should Respond To Increasing Scrutiny - Corporate/Commercial Law mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.
INTRODUCTION
The U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) have each published their annual examination priorities for 2021, signaling areas of scrutiny that broker-dealers should expect in upcoming regulatory exams. Both sets of priorities offer a road map of the issues of concern to regulators and provide guidance on what market participants – particularly broker-dealers – can do to anticipate those concerns and mitigate regulatory risks. Given the shared focus of both the SEC and FINRA in certain areas, broker-dealers should pay close attention to aspects of their businesses where these shared priorities overlap. This alert explores several of these areas of mutual concern, namely (i) information protection and cyber security, (ii) anti-money laundering policies, and (iii) sales practices, especially as they relate to Regulation BI obligations. We conclude by offering some practical takeaways to help broker-dealers mitig