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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.

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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.

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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.

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SEC Chair Responds to Senator’s Conflict Minerals Request

Responding to Senator Michael Crapo’s request that the U.S. Securities and Exchange Commission (“SEC”) proceed with a full stay on the reporting requirements from Release No. 34-67716, Conflict Minerals, SEC Chair Mary Jo White declared that her agency plans to wait for a final court ruling before deciding if further regulatory action is necessary. In a letter to Crapo this week, White stated that the SEC’s actions from the April 14th appeals court decision are in line with the ruling, the SEC’s rule and Congress’ purpose in the Dodd-Frank Act. Last month, the SEC requested that the full appeals court. Read More.

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PCAOB & Danish Business Authority Form Cooperative Agreement

To help oversee audit firms bound by regulatory jurisdictions, the Public Company Accounting Oversight Board (“PCAOB”) has announced a cooperative arrangement with the Danish Business Authority (“DBA”). Similar to arrangements with European Union members and other regulators, the PCAOB’s agreement with the DBA provides framework for shared inspections and information exchanges compliant with the Dodd-Frank Act. Due to the reform’s provisions, the PCAOB can share confidential information with non-U.S. counterparts in certain situations. Additionally, a pact concerning data protection is part of this cooperative arrangement. Since establishing a non-U.S. inspection program in 2004, the PCAOB has performed inspections in 44 jurisdictions outside of. Read More.

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House Committee Plans Dodd-Frank Hearing This Week

With the Dodd-Frank Act (“the Act”) celebrating its fourth anniversary recently, the House Committee on Financial Services has scheduled a hearing on the reform’s effects. Planned for Wednesday in Washington, D.C., “Assessing the Impact of the Dodd-Frank Act Four Years Later” will cover the Act’s beginnings, how it has encouraged financial stability, and future objectives related to the reform. Speaking on the anniversary and upcoming hearing, U.S. Securities and Exchange Commission (“SEC”) Chair Mary Jo White stated that the SEC has progressed significantly to execute the Act’s requirements. However, White also noted the SEC’s work is far from done and additional key provisions must. Read More.

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