Uncategorized – Global Investment Law Watch

United States: House Committee on Financial Services Urges the SEC to Withdraw Final and Proposed Rules

Apr 01 2025

By: Lance C. Dial, and Donela M. Qirjazi

On 31 March 2025, the House Committee on Financial Services (Committee), in a letter to Acting Chairman of the US Securities and Exchange Commission (SEC), Mark Uyeda, identified a series of proposed and adopted rules that the SEC should withdraw or rescind. The letter notes the Committee’s view that the SEC, under the prior Chair, had lost sight of its mission. The identified proposals and rules represent significant rulemaking efforts on the part of the SEC, many of which were controversial and subject to significant industry opposition. The specific proposals identified are the following:

United States: In First Major Speech as Acting CFTC Chairman, Pham Describes Policy Priorities

Feb 05 2025

By: Cheryl L. Isaac, Sarah V. Riddell, and Mallory M. Cooney

In a fireside chat at the ABA Futures & Derivatives Law Committee Winter Meeting on 30 January, Acting Chairman Caroline Pham shared her industry-friendly agenda for the Commodity Futures Trading Commission (CFTC). She described specific goals for the agency in the coming months (discussed below) and encouraged listeners to read her past dissenting statements for even more context about her priorities.

United States: SEC Says Crypto ETPs Are Exam Priority

Oct 24 2024

By: Keri Riemer, Peter Shea, and Lael Franco

On 21 October 2024, the SEC’s Division of Examinations (Division) published its 2025 Examination Priorities (Priorities) to provide insight into what the Division plans to focus on in the 2025 fiscal year. In addition to other areas of risk highlighted in the Priorities, the Division has advised that it will to continue to monitor – and conduct examinations if deemed appropriate – of registrants offering crypto asset-related services, including spot bitcoin or ether exchange-traded products (ETPs). However, with respect to spot bitcoin or ether ETPs, the Division’s oversight may be limited to the ETPs’ sponsors or managers rather than the ETPs themselves.

United States: Cooking the Books: CFTC Turns Up the Heat on Voluntary Carbon Market Fraudsters

Oct 17 2024

By: Cheryl L. Isaac, Clifford C. Histed, and Benjamin C. Skillin

On 2 October 2024, the Commodity Futures Trading Commission (CFTC) announced multiple actions related to fraud in the voluntary carbon credit (VCC) market, just over one year after establishing the Environmental Fraud Task Force. Specifically, the CFTC filed a complaint in federal court against the former CEO of a carbon credit project developer and, on the same day, settled charges against CQC Impact Investors LLC (CQC) and its former COO, all related to a deceptive scheme purportedly intended to reduce carbon emissions.

United States: After Approval at DC District Court, Appeals Court Halts Trading Event Contracts Based on Election Outcomes

Sep 13 2024

By: Cliff C. Histed, Cheryl L. Isaac, and Wiley F. Cole

On 12 September 2024, the US District Court for the District of Columbia ruled in KalshiEx LLC v. CFTC that designated contract markets may list event contracts whose payouts are tied to the outcome of elections. The court’s order, which granted summary judgment to KalshiEx LLC (Kalshi), held that the Commodity Futures Trading Commission’s (CFTC) interpreted its own regulations too broadly and that registered derivatives exchanges such as Kalshi may offer election outcome event contracts for trading.

Europe: Central Bank of Ireland Changing Notification Procedure for UCITS and AIF Passporting Applications

Aug 29 2024

By: Gayle Bowen, Emma O’Dwyer, and Aoife Maguire

The Central Bank of Ireland (CBI) is changing the process for the submission of UCITS and AIF passport notifications and de-notifications.

Europe: The Central Bank of Ireland Introduces Macroprudential Measures to Irish-Authorised GBP-Denominated Liability Driven Investment Funds

May 24 2024

By: Shane Geraghty, Michelle Lloyd, and Ruth Hennessy

The Central Bank of Ireland has introduced a macroprudential policy framework for Irish-authorised GBP-denominated liability driven investment funds (LDI Funds), to make them more resilient to shocks to UK interest rates.

United States: SEC Adopts Enhanced Privacy Safeguards

May 17 2024

By: Rich Kerr, Sasha Burstein, and Brian Doyle-Wenger

On 16 May 2024, the US Securities and Exchange Commission (SEC) adopted amendments to Regulation S-P’s safeguards and disposal rules. The amendments are designed to address the expanded use of technology and corresponding risks that have emerged since the original adoption of Regulation S-P in 2000. The amendments expand the scope of information and broaden the number of customers protected under both rules. The safeguards and disposal rule will apply to “customer information”, which includes records that contain “nonpublic personal information” as defined in the existing rule. Additionally, the amended rule expands the applicability of the safeguards rule to include transfer agents, and the disposal rules to include all transfer agents including those registered with appropriate regulatory authorities other than the SEC.

United States: Go Ahead and Take a CIP: SEC and Treasury Department Propose New Regulations for Investment Advisors

May 15 2024

By: Richard F. Kerr, Jennifer L. Klass, C. Todd Gibson, and Kenneth Holston

On 13 May 2024, the Securities and Exchange Commission (SEC) and the Department of the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) jointly proposed rulemaking to implement section 326 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (CIP Rulemaking), which would require SEC-registered investment advisers (RIAs) and exempt reporting advisers (ERAs) to establish written customer identification programs (CIP).

Europe: ESMA Provides Update on Fund ESG Naming Rules

Dec 21 2023

By: Áine Ní Riain and Lucy Deane

On 14 December, the European Securities and Markets Authority (ESMA) issued a Public Statement updating its proposals for guidelines on funds’ names using ESG or sustainability-related terms, following its consultation on the same guidelines (ESMA34-472-373, the Guidelines) that ran from November 2022 to February 2023.

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