Late last year, the Federal Reserve issued guidance on its new framework for supervising large financial institutions. The Federal Reserve’s primary objectives will be to increase the resiliency of financial institutions, and to reduce the impact of an institution’s failure on the broader economy. Changes include a greater emphasis on recovery and orderly resolution planning […]
Forthcoming in California Law Review: “From Independence to Politics in Financial Regulation” by Stavros Gadinis.
Berkeley Law Professor Stavros Gadinis’s latest article, “From Independence to Politics in Financial Regulation,” is forthcoming in the California Law Review. Professor Gadinis’s work focuses on the intersections between finance and government regulation. This particular paper takes a global look at how governments reformed their “independent” financial regulatory agencies by making them more politically accountable […]
Firm Advice: Your Weekly Update
Regulation FD mandates that issuers disclose material nonpublic information through “a Form 8-K, or by another method… reasonably designed to effect broad, non-exclusionary distribution of the information to the public.” As the SEC’s recent investigation of Netflix shows, a disclosure by the CEO of such information on Facebook likely is insufficient. In a similar incident […]
Firm Advice: Your Weekly Update
In a recent Client Alert, Wilson Sonsini reviews the 2012 proxy season, finding it “evolutionary, rather than revolutionary.” In the second year of the say-on-pay requirement, shareholder support for executive compensation averaged about 90 percent. Only three percent of say-on-pay proposals failed to garner the necessary majority of shareholder votes. Moreover, proxy access shareholder proposals—proposals […]
SEC Adopts Rules On Clearing House Standards
The Securities and Exchange Commission recently adopted a new, stricter rule governing risk management and operation standards for registered clearing activities. This new Rule, 17 Ad-22, will become effective 60 days after its publication in the Federal Register. The Rule requires registered clearing agencies that perform central counterparty services to establish, maintain and enforce written […]
Firm Advice: Your Weekly Update
On December 3rd, the SEC approved FINRA Rule 5123, which requires firms that sell a security in a private placement to file with FINRA a copy of any private placement memorandum, term sheet or other offering document used by the firm within fifteen days of the sale. The Rule provides for limited exemptions. FINRA also […]
Proprietary Data Feeds and the SEC’s Regulatory Approach to High Frequency Trading
Earlier this year the Securities Exchange Commission (“SEC”) levied its first monetary fine against an exchange as part of a $5 million dollar settlement against the New York Stock Exchange (“NYSE”). The SEC found that the NYSE delivered stock-price quotes and other data to subscribers of so called proprietary data feeds seconds before transmitting the […]
Firm Advice: Your Weekly Update
Federal Reserve Governor, Daniel Tarullo, recently discussed an upcoming proposal to alter the regulation of foreign banks in the U.S. The proposal would require large foreign banks to establish “a separately capitalized top-tier U.S. intermediate holding company.” The holding company would be “required independently to meet all U.S. capital and liquidity requirements as well as […]
Saudi Arabia’s Real-Estate Finance Laws
In July 2012, Saudi Arabia witnessed the official launch of the real-estate finance industry as part of the country’s economic financial development plans. To promote the local competition between banking and other financial sectors, and the economy’s overall global competitiveness, non-banking corporations may now finance real estate in Saudi Arabia. The Real Estate Development Fund […]
Firm Advice: Your Weekly Update
Recently, the DOJ and SEC issued A Resource Guide to the U.S. Foreign Corrupt Practices Act. The FCPA prohibits U.S. persons and businesses and all companies listed on U.S. stock exchanges from making corrupt payments to foreign official to obtain or retain business. The FCPA also mandates that these companies maintain accurate books and a […]