News in Personal Trading Software & Compliance Monitoring Tools

What’s in the News: The Top 5 Compliance Articles for April 1-14 2022

Compliance innovation moves fast, but the news moves faster. To keep you and your team up to speed on the latest happenings and goings-on in the compliance world, we’ve aggregated the top five articles from the past few weeks to provide you with an in-depth look at the regulatory ecosystem.

Stay up-to-date and in the know on everything happening in the compliance world as of April 14, 2022.

Top 5 Compliance Articles

25 Associations Press US SEC for Longer Comment Periods, APA Compliance for Rulemakings – Authors J. Paul Forrester and Christina M. Thomas

Based on the number and complexity of recent SEC regulations and amendments, associations are calling for the SEC to extend the comment periods beyond the typical 30 or 60-day average. Such a timeframe, they noted, was disproportionate given that “commenters will have to review and analyze roughly 3,570 pages and respond to roughly 2,260 individually identified questions and several broad catch-all requests for comment.”

AA study: Cybersecurity breach disclosures surge in 2021 – Author Maria L. Murphy

According to a recently released study conducted by Audit Analytics, 188 cybersecurity incidents occurred in 2021, a 51% increase from the previous year. “The results reflect existing Securities and Exchange Commission requirements that do not specifically mandate disclosure of cybersecurity events in SEC filings but do require disclosure of risks that could have a material effect on the company and its financial statements. The SEC proposed amended rules in March that would require increased standard cybersecurity disclosures for all public companies, including reporting material incidents no later than four business days after they occur.”

SEC ruling reignites spot US Bitcoin ETF approval debate – Author Bloomberg News

“The SEC gave its blessing to the Teucrium Bitcoin Futures Fund application in a late Wednesday filing. Unlike existing Bitcoin futures ETFs, the Teucrium fund was filed under the Securities Act of 1933, rather than the Investment Company Act of 1940 — SEC Chair Gary Gensler’s preferred format up to this point.

In the eyes of Bloomberg Intelligence’s James Seyffart, that nuance matters. Gensler signaled last August that the 1940 law offers greater investor protection than the 1930s law, with the agency allowing the first Bitcoin futures ETF to begin trading in October. However, given that a physically backed Bitcoin ETF — a structure the SEC has repeatedly denied — would fall under the 1933 act, approving the Teucrium fund could be a needed step to a spot ETF, Seyffart said.”

SEC proposes Dodd-Frank rule requiring security-based swaps to hire CCOs – Author Aaron Nicodemus

“The proposed rule would require SBSEFs to register with the agency and provide information about trades and potential conflicts of interest in collaboration with the SEC’s sister regulator, the Commodity Futures Trading Commission (CFTC). Having the SEC create a regulatory framework for the over-the-counter (OTC) derivatives markets is one of the last remaining unfulfilled mandates of the Dodd-Frank Act of 2010.

With the announcement, SEC Chair Gary Gensler said the agency is withdrawing all its previous rulemaking connected to SBSEFs, a nod to the successful implementation of a registration and regulation framework for many of these same entities by the CFTC.”

U.S. regulators crack down on retention of electronic communications – Authors Daniel L. Stein, Michele Natal and Lydia Ho

Between advancements in technology and COVID-19 forcing many businesses to transition from in-office to work-from-home, personal technology has seeped into business life. A fact which has led regulators to drastically increase enforcement actions in regards to record-keeping policies, protocols, and processes.

“In October 2021, Gurbir S. Grewal, Director of the Division of Enforcement at the Securities and Exchange Commission (SEC), warned that companies “need to be actively thinking about and addressing the many compliance issues raised by the increased use of personal devices, new communications channels, and other technological developments like ephemeral apps.”