The SEC has released its new sets of priorities for 2021. Here they are.
- Climate & ESG risks, disclosures and policies will be the focus #1.
- Retail investors, seniors, retirement savors: Reg BI and Fiduciary Duty compliance
- Information Security & Operational Resiliency: disaster recovery plans, especially for SIFI companies, data security.
- FinTechs, innovation and digital assets: compliance, trading applications & practices.
- LIBOR transition
- for IA and investment companies:
- Compliance programs, ESG factors, open-end funds & ETFs, adequacy of disclosures, false advertisement
- registered funds (mutual & ETFs): disclosures, valuation, filings, personal trading, contracts & agreements, fee waivers, actively managed ETFs, securities lending practices.
- RIAs to private funds: disclosures, concentration in structured products (CLOs, MBS…), default risk.
- broker-dealers and municipal advisors: customer protection rule, net capital rule, order routing and rule 606 (Robinhood!)
- Market infrastructure
- Clearing agencies
- national securities exchanges
- Systems, Compliance & Integrity procedures: IT governance, cyber threats, business continuity, vendor management, cloud services.
- Transfer agents
- FINRA & MSRB: oversight of BDs and advisors.
A few comments:
- You can see that the election had some impact, notably through the focus on climate & ESG, retail & seniors (Reg BI) and FinTechs.
- Gary Gensler is a specialist of cryptocurrencies, with a well-rounded background.
- These priorities probably explain why our friends at CoinSeed suddenly had some regulatory focus.
- Hard also to avoid the elephant in the room (Robinhood) as well – see our articles below.
- CoinSeed: Adult supervision needed in the crypto trading rooms
- Are the Robinhood traders going after the VIX?
- A History of Daytrading: Regulators, Congress and Robinhood
- Robinhood’s $65m SEC penalty and the ‘gamification’ of trading
- Most Robinhood day traders lose money
- Roaring Kitty is a Wall Street lion