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Civil Monetary Penalties Adjusted for Inflation

A final rule has been introduced to carry out the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The final rule implements the first annual inflation adjustment of Securities and Exchange Commission-issued (“SEC”) civil monetary penalties under the following: Securities Act of 1933 Securities Exchange Act of 1934 Investment Company Act of 1940 Investment Advisers Act of 1940 Certain penalties under the Sarbanes-Oxley Act of 2002 Violations that occurred after November 2, 2015, will be impacted upon the final rule’s effective date. For violations on or before that date, the SEC will reinstate penalty amounts in its previous adjustments as. Read More.

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SEC Adopts JOBS Act and FAST Act Amendments

The Securities and Exchange Commission (“SEC”) has approved final rule amendments that implement provisions of the Jumpstart Our Business Startups Act (“JOBS Act”) and the Fixing America’s Surface Transportation Act (“FAST Act”). In particular, the final rules concern the registration, termination of registration, and suspension of reporting under Section 12(g) of the Securities Exchange Act of 1934. The final rules also establish a non-exclusive safe harbor for determining holders of record when evaluating an issuer’s registration responsibilities under Section 12(g). The final rules will be effective 30 days after publication in the Federal Register. More on the approved JOBS Act and FAST Act amendments can be found. Read More.

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GATE Global Impact Petitions for Change to Anti-Fraud Rule

Last month, GATE Global Impact Inc., filed a rulemaking petition asking the Securities and Exchange Commission (“SEC”) to amend Rule 15c2-11 under the Securities Exchange Act of 1934. The New York-based electronic marketplace says the decades-old rule against microcap fraud must be changed to account for what it believes to be an unintentional consequence of the JOBS Act. Per its petition, GATE predicted that SEC adoption of the JOBS Act’s “Regulation A+” capital formation rules would increase the number of securities bound by Rule 15c2-11. Without making changes to the “piggyback” exception to Rule 15c2-11, GATE insisted that the rise. Read More.

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SEC Proxy Voting Roundtable Set for Early 2015

As the debate heats up on which rules the Securities and Exchange Commission (“SEC”) should use for expanding or limiting a shareholder’s influence, the agency has decided to hold a public discussion on proxy voting issues. Scheduled for early next year, the roundtable marks the second time in recent memory the SEC has solicited feedback on the topic and will review the Investor Advisory Committee’s (“the Committee”) recommendation of updating proxy ballot rules. As part of its revised rules push, the Committee wants Rule 14a-4(d)(1) of the Securities Exchange Act of 1934 to permit the use of a universal proxy. Read More.

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SEC Announces Fiscal Year 2015 Fee Rate

In a press release Friday, the Securities and Exchange Commission (“SEC”) has announced that fees public companies and other issuers pay for registering their securities will be $116.20 per million dollars in fiscal year 2015. Per Section 6(b) of the Securities Act of 1933 and Sections 13(e) and 14(g) of the Securities Exchange Act of 1934, the SEC is required to adjust the annual rates for fees paid to levels that reflect projections of how much the agency will generate equal to yearly statutory target amounts. According to the SEC’s projections, fiscal year 2015’s statutory target amount is set for $515 million.. Read More.

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SEC Approves Rules on Over-the-Counter Derivatives

Approved by unanimous vote, the U.S. Securities and Exchange Commission (“SEC”) will adopt rules on how to apply “Security-Based Swap Dealer” and “Major Security-Based Swap Participant” definitions to cross-border security-based swap actions under the Securities Exchange Act of 1934 and Title VII of the Dodd-Frank Act. The new rules are part of a bigger framework suggested under the Dodd-Frank Act that would control over-the-counter derivatives. Through the Dodd-Frank Act, the SEC can carry out a regulatory framework for security-based swaps. At this time, security-based swaps trade solely in over-the-counter markets with little oversight. To counter future financial crises, various SEC. Read More.

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