Traders Magazine
Dec. 28, 2020
Jay Clayton ended his tenure as Chairman of the Securities and Exchange Commission last week. I greatly enjoyed working with Chairman Clayton over the past three years. Under his leadership, the agency has navigated difficult and novel challenges, including the pandemic and associated shutdowns and market volatility. Chairman Clayton’s steady hand, wisdom, and optimism inspired the rest of us at the agency to remain focused and committed to protecting American investors and the U.S. capital markets. I particularly appreciated Chairman Clayton’s habit of setting an agenda publicly, following it, and recognizing the staff whose hard work made it all possible.
Statement On The Departure Of SEC Chairman Jay Clayton: Commissioner Hester M. Peirce, Dec. 28, 2020 Date
29/12/2020
Jay Clayton ended his tenure as Chairman of the Securities and Exchange Commission last week. I greatly enjoyed working with Chairman Clayton over the past three years. Under his leadership, the agency has navigated difficult and novel challenges, including the pandemic and associated shutdowns and market volatility. Chairman Clayton’s steady hand, wisdom, and optimism inspired the rest of us at the agency to remain focused and committed to protecting American investors and the U.S. capital markets. I particularly appreciated Chairman Clayton’s habit of setting an agenda publicly, following it, and recognizing the staff whose hard work made it all possible.
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In 2020, the financial services industry and regulators adjusted to new norms of social distancing, electronic document delivery, and electronic transactions. Regulators are recognizing the gap between advancements in technology and customer acceptance on the one hand, and a decades-old regulatory structure on the other. Below are some of the notable shifts under consideration at the federal and state levels.
E-SIGN Modernization Act
In July, three Republican senators introduced a bill to modernize the Electronic Signatures in Global and National Commerce Act (E-SIGN), which became law in 2000. E-SIGN provides a framework for using electronic documents and signatures in transactions involving interstate and foreign commerce.
SEC: Staff Statement On The Presidentâs Working Group Report On Money Market Funds, Dalia Blass, Director, Division Of Investment Management, Dec. 23, 2020 Date
In March, the short-term funding markets came under sharp stress from the economic concerns related to the COVID-19 pandemic and an overall flight to liquidity and quality among investors.[2] The President’s Working Group on Financial Markets (“PWG”) has studied the effects of the COVID-19 pandemic on the short-term funding markets and, in particular, on money market funds.[3] The results of this study are included in a report issued on December 22, 2020 and attached to this statement as an Appendix (the “Report”).[4]
SEC Finalizes Digital Advertising Rule Reforms
The SEC’s leadership says the updated marketing rule reflects important changes to the traditional advertising and solicitation regulations, which have not been amended for decades.
After more than a year since it put forward a proposal on the topic, the U.S. Securities and Exchange Commission (SEC) has finalized key reforms under the Investment Advisers Act to modernize the rules that govern investment adviser advertisements and payments to solicitors.
The finalized amendments create a single rule that replaces the current advertising and cash solicitation rules. According to the SEC’s leadership, the final rule is designed to comprehensively and efficiently regulate investment advisers’ marketing communications. They say the reforms will allow advisers to provide investors with useful information as they choose investment advisers and advisory services, subject to conditions that are reasonably designed to prevent fraud.