United States: A Holiday Gift for M&A Brokers: Congress Passes New Exemption from Securities Broker Registration

Dec 29 2022

On December 23, 2022, the House of Representatives passed H.R. 2617, the “Consolidated Appropriations Act of 2023,” following Senate passage on December 22. President Biden is expected to sign the legislation before December 30. Among the routine federal funding provisions, the bill includes a holiday surprise “policy rider” on qualifying mergers and acquisitions brokers (“M&A brokers”) in Division AA, Title V, Small Business Mergers, Acquisitions, Sales and Brokerage Simplification (“Title V”), effective 90 days after enactment. (H.R. 2617, 117th Cong. Div. AA, Title V, § 501 (2022)).

United States: PCAOB’s Vacating 2021 Determination under HFCAA Lowers the Risk of Delisting

Dec 22 2022

By: Yuki Sako and Michael G. Lee

On 15 December 2022, the Public Company Accounting Oversight Board (PCAOB) announced that it was able to secure complete access to inspect and investigate audit firms in China. From September to November 2022, PCAOB staff members “conducted on-site inspections and investigations in Hong Kong…thoroughly testing all aspects of the agreement necessary to assess whether [Chinese] Authorities would allow complete access.” The PCAOB’s inspections and investigations were pursuant to a written agreement, called the Statement of Protocol, which the PCAOB entered into with Chinese authorities on August 26, 2022. The PCAOB concluded that Chinese authorities “did not obstruct the PCAOB’s ability to inspect and investigate completely, consistent with U.S. law.” Consequently, the PCAOB decided to vacate its previous December 16, 2021 determination, made pursuant to the Holding Foreign Companies Accountable Act (HFCAA), that positions taken by China prevented the PCAOB from inspecting and investigating firms headquartered in mainland China and Hong Kong completely.

Australia: Climate and Sustainability-Related Financial Disclosure Reforms on the Horizon

Dec 14 2022

By Jim Bulling and Anabelle Weinberg

1. Australian Government consults on climate-related financial disclosure framework

The Australian Government has released a consultation paper seeking feedback on the design and implementation of their commitment to a standardised, internationally-aligned climate-related financial disclosure framework. The framework proposes a ‘phased’ approach where the increased disclosure obligations apply initially to large, listed entities and financial institutions, and be later expanded to smaller firms.

Australian Regulatory Update – 14 November 2022

Nov 22 2022

By Jim Bulling and Anabelle Weinberg

1. Bitcoin plunges as FTX Trading files for bankruptcy – calls for more transparency from crypto exchanges

Bitcoin has plunged following the fall of FTX Trading (FTX). It remains unclear when or if traders will be able to recoup their money from FTX.

In response to the collapse of FTX and in an effort to retain confidence in their platforms, a number of large crypto exchanges have published Proof of Reserves showing that the levels of assets that they hold match their liabilities to customers.

Australian Regulatory Update – 7 November 2022

Nov 07 2022

By Jim Bulling and Anabelle Weinberg

1. ASIC Annual Forum

The ASIC Annual Forum was held on 3 – 4 November 2022 with a number of significant announcements being made.

Firstly, ASIC has for the first time announced their enforcement priorities for 2023. ASIC now intends to do this on an annual basis.

Australian Regulatory Update – 2 November 2022

Nov 02 2022

By Jim Bulling and Anabelle Weinberg

1. ASIC takes its first ‘greenwashing’ action

ASIC has taken its first ‘greenwashing’ action against Tlou Energy Limited (Tlou). Tlou has paid a total of $53,280 to comply with four infringement notices issued by ASIC over concerns about alleged false or misleading sustainability-related statements. Tlou have not admitted guilt.

Australia: ASIC releases its first insights from the reportable situations regime

Oct 28 2022

By Jim Bulling and Hugo Chow

In ASIC’s first annual report regarding the reportable situations regime, it noted that there were over 8000 reports made to ASIC by financial services and credit licensees under the regime from 1 October 2021 to 30 June 2022.

Australia: Australian Government abandons introduction of limited partnership structure

Oct 26 2022

By Kane Barnett

The Australian Government has delivered the 2022-23 Federal Budget. One of the announcements relevant to the investment funds industry was that the Government “has reviewed and will not proceed with … the 2016–17 Budget measure that proposed introducing a new tax and regulatory framework for limited partnership collective investment vehicles”.

Australia: Regulatory update – 24 October 2022

Oct 24 2022

By Jim Bulling and Hugo Chow

ASIC’s crackdown on product disclosures continues

To date, ASIC has issued 11 design and distribution obligations stop orders, with the first stop orders being issued in July this year.

The latest interim stop order prevent a fund management firm (the Firm) from offering or distributing three funds (the Funds) to retail investors due to the Firm not having compliant target market determinations (TMDs).

Australia: Regulatory update – 17 October 2022

Oct 17 2022

By Jim Bulling and Hugo Chow

ASFI releases its first report on the Australian sustainable finance taxonomy

The Australia Sustainability Finance Institute (ASFI) is working closely with the government and regulators to develop an Australian sustainable finance taxonomy.

The Report outlines the key considerations that will inform the development of an Australian sustainable finance taxonomy that will consist of credible, science-based definitions.

Catagory:Global Regulatory Development

1. Bitcoin plunges as FTX Trading files for bankruptcy – calls for more transparency from crypto exchanges

1. ASIC Annual Forum