Monthly Archives: July 2018

SEC Best Interest v. Fiduciary

On Jul. 30, SEC's Hester Peirce spoke about best interest v. fiduciary. At 2018 NAPA DC Fly-In Forum, Peirce spoke of best interest v. fiduciary duty. Standards debated on intent of words and interpretation applied by BD and IA. Definitions Proposed regulation best interestrequires BDs to act in the best interest of the retail customer…
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UK FCA SMR Unregulated Acts

On Jul. 27, 2018, UK FCA issued final handbook notice 57 on status of industry codes. Rules on FCA Recognized Industry Codes (DEPP, EG) Instrument 2018 (FCA 2018/36). Board has made changes to the FCA Handbook sections as follows: Glossary, DEPP 6. The FCA has also made changes the following section of the enforcement guide:…
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SEC Fund Disclosure Website

On Jul. 24, SEC added a  fund disclosure website for compliance. New site adds pages explains DRAO’s responsibilities and core disclosure principles. A tab aids practitioners, others interested in law, interpretations of fund disclosures. Gather in a single place, various fund disclosure resources, and reference materials.
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CSEC €6.5 mn Insider Deal Fine

On Jul. 25, CSEC fine for insider dealing, market manipulation. Fines of almost €6.4mn for share acquisition in Sea Star Capital Plc, for violating laws regarding insider dealing, confidential information and market manipulation. Imposed on Ioannis, Amalia Vardinoyianis, Christodoulos Ellinas, Philippos Larkos. Allegations Possessing confidential information re: change in company activities re: shipping. Ioannis Vardinoyannis…
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ESMA Suitability Requirements

On Jul. 24, ESMA issued report on MiFID suitability requirements. Follows ESMA Apr. 2016 peer review of MiFID suitability requirements. Follows ESMA's May 2018 final guidelines on MIFID II suitability rules. Follow-Up Report Review found improvements with NCA supervision of these suitability requirements. Issued follow-up report regarding oversight by national competent authorities (NCA). Report assesses…
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SEC Deutsche $75mn on ADRs

On Jul. 20, SEC ordered Deusche to pay $75mn for ADR trading. To settle charges of improper handling of pre-released American Depositary Receipts. Follows similar actions on Banca IMI in Aug. 2018 , and ITG. ADRs US securities representing foreign shares of foreign company, require corresponding foreign shares held in custody at depositary bank, pre-release…
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