November 29, 2023


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SEC Proposes Rules to Include Certain Significant Market Participants as “Dealers” or “Government Securities Dealers” | Goodwin


SEC PROPOSES Procedures TO Include things like Particular Major Industry Individuals AS “DEALERS” OR “GOVERNMENT SECURITIES DEALERS”

On March 28, the SEC proposed new regulations that would need certain sector members, these types of as proprietary investing corporations, that perform selected seller-like roles by acting as liquidity vendors and/or participating in certain stages of acquiring and advertising securities, to (1) register with the SEC, (2) develop into a member of an SRO and (3) comply with federal securities regulations and regulatory obligations. A vendor is described as a individual “engaged in the business” of acquiring and selling securities for these person’s own account. Excluded from this definition is a “trader” who “buys or sells securities…for this sort of person’s possess account…but not as a element of a normal enterprise.” The proposal would, in essence, reduce the trader exclusion for most companies.

The proposal would apply to any individual or organization that has or controls full belongings of at the very least $50 million. The SEC’s proposal is developed to grow the definition of vendor to capture proprietary investing corporations engaging in certain specified concentrations of buying and selling action to the diploma that this sort of firms perform a major purpose in supplying liquidity to the over-all sector. The proposal, if adopted, would extend the regulatory framework applicable to broker-dealers to this kind of companies. Interestingly, the SEC notes that the proposal would even apply to companies that transact in “digital asset securities.” Coupled with other new SEC proposals, like proposed amendments to Regulation ATS, this rule could be 1 of the SEC’s initially main ways towards regulating cryptocurrency markets, in addition to the proprietary buying and selling corporations that transact in classic securities.

“I was happy to assistance this proposal due to the fact I believe that it demonstrates Congress’s statutory intent that firms partaking in important liquidity-offering roles in the securities marketplaces, such as in the U.S. Treasury sector, be registered with the Fee.”
— SEC Chair Gary Gensler

SEC PROPOSES Modifications TO REGULATION M TO Take away Credit rating-Score REFERENCES

On March 23, the SEC proposed amendments to Regulation M which, if adopted, would remove references to credit score ratings at the moment involved in Regulation M. Beneath the proposed adjustments, the measure of credit history-worthiness of nonconvertible debt securities, nonconvertible most popular securities and asset-backed securities bundled in the exception to Rule 101 of Regulation M would be changed with new requirements. The exception to Rule 102 of Regulation M would be removed.

Further, the SEC proposed new paragraph (b)(17) of Rule 17a-4 under the Securities Trade Act of 1934, which would involve broker-dealers relying on Rule 101’s exception for specific nonconvertible personal debt securities and nonconvertible favored securities to protect, for a period of not fewer than 3 several years, the first two a long time in an effortlessly accessible spot, the prepared probability of default perseverance. The community comment time period will keep on being open up for 30 days next publication of the proposing launch in the Federal Sign-up or 60 days following publication of the proposing launch on the SEC’s internet site, whichever time period is for a longer time.

FDIC Difficulties Request FOR Data ON Lender MERGERS

On March 25, the FDIC issued a bulletin trying to get remark and feedback on the success of recent policies and laws associated to bank mergers.

The FDIC would like to measure the success of the current framework in conference the demands of the Lender Merger Act. The request for information (RFI) is trying to find opinions with regards to the application of the legal guidelines, techniques, policies, laws, direction and statements of plan that implement to mergers involving one particular or more insured depository establishments. This would include things like a merger among an insured depository institution and a noninsured establishment.

The RFI is prompted by significant variations that have taken put about the previous several a long time in the banking marketplace and financial system. Specifically, the RFI states that a few a long time of consolidation and advancement in the banking sector have appreciably lessened the variety of scaled-down banking institutions and improved the quantity of significant and systemically critical banking companies. Additionally, a modern government get instructed U.S. businesses to look at the impression that consolidation may perhaps have on preserving a competitive marketplace.

The FDIC is accepting responses in 60 days of publication in the Federal Sign up.


On March 21, FINRA’s Cyber and Analytics Unit (CAU) issued a Cybersecurity Warn (Warn) highlighting a assertion built by President Biden on the exact day regarding prospective threats to the United States’ cybersecurity. Of distinct worry is the mounting intelligence that Russia is “exploring solutions for likely cybersecurity attacks.”

According to President Biden’s statement, most of America’s critical infrastructure is owned and operated by the personal sector as these types of, the CAU is reiterating the President’s ask for that personal sector corporations quickly fortify their cyber defenses and be vigilant versus possible cybersecurity attacks. In addition to reinforcing cybersecurity, the Alert also highlights the Office of Homeland Security’s efforts to share mitigation direction and to actively engage businesses and essential infrastructure holders from throughout the private sector to share information linked to cybersecurity attacks to support ensure defense.


On March 29, the FDIC and the OCC issued bulletins connected to the joint rule establishing laptop-security incident notification demands for banking organizations and their lender provider companies (Laptop-Protection Incident Notification: Last Rule) that goes into outcome on May possibly 1, 2022.

FDIC-supervised banking institutions can comply with the rule by notifying their circumstance manager of an incident. To fulfill the notification need, an OCC-supervised lender may well e-mail or connect with its supervisory place of work, post a notification by way of the BankNet web site,, or speak to the BankNet Assist Desk.

For the purposes of the rule, a “notification incident” typically consists of “a major pc-security incident that disrupts or degrades, or is moderately probable to disrupt or degrade, the viability of the bank’s operations success in shoppers being unable to accessibility their deposit and other accounts or impacts the stability of the fiscal sector,” like: a significant computer system-program failure a cyber-similar interruption, or a further type of considerable operational interruption. If a financial institution is unsure no matter whether it is encountering a notification incident for purposes of the closing rule, the bank should really contact its supervisory workplace.


On March 30, the SEC held an open conference to take into consideration proposed rules and amendments regarding exclusive objective acquisition corporations (SPACs), shell firms, and projections disclosure.

Read the consumer inform for far more info on the proposed new principles and amendments.


The Buyer Economical Defense Bureau (CFPB) has been actively reshaping the scope of its supervisory and enforcement priorities with respect to unfair, misleading, or abusive functions or tactics (UDAAPs) beneath the Client Fiscal Safety Act (CFPA). On March 16, 2022, the CFPB current its UDAAP Examination Treatments to information examiners in figuring out unfair discrimination in the featuring or offering of shopper economic goods or products and services. Then, on March 22, the CFPB published coverage direction on prohibited conduct less than the CFPA relating to buyer reviews. These developments connect with for covered establishments to have interaction their transform administration procedures and update their compliance management system (CMS) to mitigate UDAAP chance.

Read the shopper alert to master a lot more.