Conduct of Business – Global Investment Law Watch

China: China’s A-Share Market Expands Closing-Price Trading: Implications for Funds and Institutional Investors

Jul 16 2026

Effective 6 July 2026, China’s stock exchanges implemented three significant trading rule changes aimed at improving market quality, enhancing price discovery, and facilitating long-term institutional participation. This is a further step in the continued evolution of China’s capital market microstructure and introduces features that are broadly consistent with practices in more mature international markets.

China: China Announced Proposed Penalties on Cross-Border Securities Business: What Overseas Institutions Should Watch?

Jul 08 2026

By: Chloe Duan and Amigo L. Xie

On 22 May 2026, the China Securities Regulatory Commission announced proposed penalties against several overseas online brokerage firms for cross-border business activities. The regulator stated that their provision of brokerage services to mainland China investors violated China’s laws. Gains from these activities are to be confiscated and penalties imposed.

United States: Show Me the Money: SEC Risk Alert Highlights Advisers’ Economic Conflict

Jun 11 2026

By: Thoreau Bartmann, Jennifer Klass, Pablo Man, and Keri Riemer

On 9 June 2026 the SEC Division of Examinations published its second risk alert since Atkins became chair. The Risk Alert reminds investment advisers of their fiduciary obligation to disclose economic conflicts of interest that might cause advisers and their financial professionals to recommend certain products, services, or account types. Citing the SEC’s fiduciary interpretation from 2019 and longstanding examination priorities, the Risk Alert identifies the following areas of concern:

Europe: UK Consultations on Reducing the Burden of the FCA Senior Managers Regime

Aug 04 2025

By: Zainab Kuku, Philip Morgan, and Andrew Massey

As part of the UK government’s strategy to boost the competitiveness of the UK financial services sector and support growth, the overall burdens of the Senior Managers & Certification Regime (SMCR) are to be reduced “by 50%”.

Australia: Climate-Related Transition Plans–Governing for Net Zero Across the Board

Aug 01 2025

By: Jim Bulling, Alex Parker, and Thais Fernandes

On 16 July 2025, The Australian Council of Superannuation Investors (ACSI) and the Australian Institute of Company Directors (AICD) published guidance on Governing for Net Zero: The Board’s Role in Organisational Transition Planning (ACSI & AICD Guide), which is designed to assist directors in preparing Climate-Related Transition Plans (Transition Plan).

United States: The Great SEC Spring Clean Up–14 Proposals Wiped Away

Jun 13 2025

By: Lance C. Dial, Keri E. Riemer, and Lael R. Franco

Spring is a time of renewal, and the US Securities and Exchange Commission (SEC)–under its new chairman, Paul Atkins–has shown that. On 12 June 2025, the SEC withdrew 14 proposed rules impacting funds and asset managers, including several that had been vigorously opposed by the industry. A complete list is below, but highlights include proposed rules relating to safeguarding (custody), predictive data analytics (AI), ESG-related disclosures, outsourcing and cybersecurity.

Australia: Full Federal Court Finds in Favour of ASIC Appeal Concerning the Scope of the “Authorised Representative” Exemption

Jun 11 2025

By: Kane Barnett and Isaac Gilmore

The Full Federal Court (the Court) has ruled in favour of the Australian Securities and Investments Commissions’ (ASIC) appeal as to whether BPS Financial Pty Ltd (BPS) could rely on the ‘authorised representative’ exemption in relation to issuing their ‘Qoin Wallet’ product (see our previous post for background). The authorised representative exemption is commonly relied upon and allows a person or entity to provide a financial service under the Corporations Act on behalf of the holder of an Australian financial services licence (AFS licence) without having to hold an AFS licence itself.

United States: Y’all Street to Attract Business With “Pro-growth” Legislation

May 16 2025

By: Jessica D. Cohn, Robert H. McCarthy Jr., and Yonathan Y. Tewelde

Growing corporate and financial industry interest in Texas as a viable alternative to Delaware for incorporation is creating a trend, which is being called “Dexit.”

Europe: UK’s FCA Axes Proposed “Name and Shame” and D&I Requirements, and Delays Non-financial Misconduct Rules

Apr 08 2025

By: Michael E. Ruck, and Laura Scott

The UK’s Financial Conduct Authority had proposed a so-called “name and shame” approach that would have allowed it, subject to certain safeguards, to disclose its investigations into firms publicly at an early stage (see our earlier blog); however, following significant criticism from the financial industry and Parliament—largely highlighting risks that early disclosure could potentially cause irreversible damage to firms, including those later cleared of any wrongdoing—the FCA has abandoned the proposal.

Europe: UK’s FCA Intensifies Scrutiny on Private Markets Valuations

Apr 07 2025

By: Daniel Greenaway and Flavio Picaro

The UK’s Financial Conduct Authority has published the findings of its multi-firm review of valuation processes for private market assets. This review follows the highlighting of vulnerabilities in private markets stemming, in part, from opaque valuations, in both the Bank of England’s June 2024 Financial Stability Report and IOSCO’s September 2023 report on emerging risks in private finance markets.

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