SEC Proposal to Substantially Reduce Form 13F Reporting Obligations
On July 10, 2020, the SEC proposed increasing the reporting threshold that triggers the filing of a Form 13F from $100-million worth of “13(f) securities” to $3.5 billion. The $100-million threshold has not changed since Congress amended the Securities Exchange Act of 1934 in 1975.
BE-180 — Mandatory Survey of Cross-Border Financial Services Transactions
The U.S. Department of Commerce’s Bureau of Economic Analysis has begun the process of collecting the 2019 BE-180 Survey of Financial Services Transactions Between U.S. Financial Services Providers and Foreign Persons. BE-180 information is collected every five years.
CFTC Actions on Automated Trading
On June 25, 2020, the Commodity Futures Trading Commission issued a rulemaking proposal addressing the risks of electronic trading causing disruptions in the commodity futures, options and swaps markets. The proposed regulations would impose new obligations upon exchange operators to take steps to prevent, detect and mitigate market disruptions associated with electronic trading.
CFTC Conditions Rule 4.13 Eligibility on Absence of Statutory Disqualifications
On June 4, 2020, the CFTC amended Rule 4.13, which contains a fund-level registration exemption that is frequently claimed by private fund managers, to require a manager seeking to claim a Rule 4.13 exemption to represent that neither it nor any of its principals is subject to a statutory disqualification listed in Section 8a(2) of the Commodity Exchange Act.
Reminder: Swaps Proficiency Requirements for Associated Persons
Managers that are registered with the CFTC and are members of the National Futures Association should note that compliance with the NFA’s new swaps proficiency requirements is required by Jan. 31, 2021.
EU Shareholder Rights Directive
The implementation of the EU Shareholder Rights Directive will, among other things, introduce a new regulatory framework enabling EU issuers to identify their shareholders. From Sept. 3, 2020, EU-based “intermediaries” will be required to respond to requests from issuers to identify clients with holdings over a stated percentage of shares or voting rights.
Implementation of the New Marketing Regime in Switzerland
The Swiss financial regulator, FINMA, has recently approved several investor complaint mediation bodies to serve as ombudsmen for financial services disputes. As a result, managers that offer their funds in Switzerland are required to join a financial ombudsman organization by Dec. 24, 2020.
CISA Releases First Installment of its ‘Cyber Essentials’ Toolkits
Earlier this year, the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency issued the first of a series of six cyber essentials toolkits, as a follow-up to CISA’s November 2019 release of CISA’s Cyber Essentials. On July 1, CISA published the second toolkit on its website.