CPAs and Advisors with Your Growth in Mind

SEC Nominees Blocked by Democrats

Four Senate Banking Committee Democrats have blocked the nominations of Lisa Fairfax and Hester Peirce to the Securities and Exchange Commission (“SEC”). During an April 7th voice vote, Sens. Robert Menendez, Jeff Merkley, Charles Schumer and Elizabeth Warren expressed their dissatisfaction over the nominees’ answers on a political spending disclosure rule they want passed. Senator Warren also remarked that Peirce’s nomination is risky because of her disapproval of the Dodd-Frank Act reforms. The SEC had no comment regarding the vote. More on the SEC nomination vote is available on the U.S. News website.

Topics: ,

Oxfam Claims SEC Not Moving Fast Enough on Payment Disclosure Rule

Accused of not acting quickly on a disclosure rule for oil and mining companies that make payments to governments as part of their business practices, the Securities and Exchange Commission (“SEC”) is being sued by Oxfam America Inc. Per its complaint filed last week, the international aid group says the agency should have issued a rule over three years ago and are violating the will of Congress, which called for the disclosure provision through the Dodd-Frank Act. Oxfam also stated that it is a shareholder in some of the companies that would be impacted by the SEC’s rule. In 2012,. Read More.

Topics: , , , ,

Tracey McNeil Named SEC’s First Ombudsman

In line with the Dodd-Frank Act’s directive to create the Office of the Investor Advocate, the Securities and Exchange Commission (“SEC”) has selected Tracey McNeil as the agency’s first ombudsman. Announced last week , she will serve as a liaison for resolving any concerns retail investors may have with the SEC or self-regulatory groups. McNeil begins her role as SEC ombudsman on September 22nd. Currently, McNeil works in the SEC’s Office of Minority and Women Inclusion (“OMWI”; “the Office”). As a senior counsel with OMWI, she has advised in the establishment of the Office, and ensured the fair inclusion of minorities, women, and. Read More.

Topics: ,

Whistleblower Receives $300,000 Payment from the SEC

After a public company failed to take action when one of its employees internally reported potential fraud, the Securities and Exchange Commission (“the Commission”; “SEC”) awarded over $300,000 to the whistleblower for notifying the agency of the wrongdoing. Announced on Friday, the Commission said it was notified of the fraud attempt when the employee’s concerns went ignored after 120 days from the initial report. Given authority to pay out awards for securities law violations by the Dodd-Frank Act, the SEC keeps the identity and information of whistleblowers confidential. However, while the whistleblower is an audit and compliance professional, the agency. Read More.

Topics: , , ,

SEC’s Release No. IC-31184 to Remove Credit Ratings from Money Market Fund Rule

Issued by the U.S. Securities and Exchange Commission (“the Commission”), Release No. IC-31184, Removal of Certain References to Credit Ratings and Amendment to the Issuer Diversification Requirement in the Money Market Fund Rule, was approved unanimously on July 23rd. The proposal aims to help the Commission lessen reliance on credit ratings in its rules due to the 2008 financial crisis. Among the changes proposed, most were part of Release No. 33-9408, Money Market Fund Reform, and relate to provisions in Rule 2a-7 of the Investment Company Act of 1940. The Dodd-Frank Act ordered regulatory groups to review rules that use. Read More.

Topics: , , , ,

Institutional Prime Money Market Funds Move to Floating NAV

With a 3-2 vote, the U.S. Securities and Exchange Commission (“SEC”) yesterday adopted a final rule to restrict investors’ risk on money market funds. Voted at an open meeting, the rule requires institutional prime money market funds to shift from a $1 per share net asset value (NAV) to a floating NAV. The floating NAV will apply only to institutional prime money market funds, but the rule also contains discretionary liquidity fees and gates for non-government funds. Also at yesterday’s meeting, the SEC voted to re-propose amendments that would take out credit ratings references from Rule 2a-7, as required by. Read More.

Topics: , , ,