Compliance Newsflash – July 3, 2019

July 5, 2019

SEC Reg BI Involves ‘Massive Implementation’ Process: Peirce

On June 27, 2019, ThinkAdvisor reported that SEC Commissioner Hester Peirce warned broker-dealer executives Thursday to brace for a “massive implementation” process for Regulation Best Interest, and urged attendees to alert the agency quickly to any compliance hurdles.  “As I said at the time we adopted the [Reg BI] rule, it’s a very aggressive implementation timeline,” Peirce said at the Securities and Exchange Commission and Financial Industry Regulatory Authority joint National Compliance Outreach Program for Broker-Dealers, held at the Federal Reserve Bank of Chicago.

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SEC Issues Concept Release on Harmonization of Securities Offering Exemptions: Potential Opportunities for Both Private Funds and Registered Funds 

On June 28, 2019, Ropes & Gray reported that on June 18, 2019, the SEC published its Concept Release on Harmonization of Securities Offering Exemptions (the “Release”) to solicit public comment on exemptions from registration under the Securities Act. The Release notes that, over time, there have been significant changes to the framework for exempt offerings, resulting in gaps and complexities. Therefore, the Release states, the SEC seeks comments on ways “to simplify, harmonize, and improve the exempt offering framework to promote capital formation and expand investment opportunities while maintaining appropriate investor protections.” 

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