FiSolve Weekly News Digest (December 20, 2024)

Here is what we are reading in the news this week.?

SEC Modernizes the Submission of Certain ’34 Act Forms, Filings, and Materials

The U.S. Securities and Exchange Commission (SEC) adopted amendments to require the electronic filing, submission, or posting of certain forms, filings, and other submissions that broker-dealers, national securities exchanges, national securities associations, clearing agencies, security-based swap dealers, and major security-based swap participants make with the SEC.? Two Commissioners, however, raised concerns with the rule’s adoption and dissented against its adoption.? Read FiSolve 's Kimberly Jansky Johnson ’s summary at https://www.dhirubhai.net/pulse/new-sec-rule-adoption-met-commissioners-dissent-jansky-johnson-ogi9f/?trackingId=UOIJ2Z1KSvqapuQ0EqhVsA%3D%3D.

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CFTC Approves Final Rule Regarding Safeguarding and Investment of Customer Funds

The U.S. Commodity Futures Trading Commission (CFTC) announced it approved a final rule amending the CFTC’s regulations that govern how futures commission merchants (FCMs) and derivatives clearing organizations safeguard and invest customer funds held for the benefit of customers engaging in futures, foreign futures, and cleared swaps transactions.? The amendments revise the list of permitted investments in CFTC Regulation 1.25 and make other related changes and specifications. ?The amendments also eliminate the CFTC requirement that an FCM deposit its customer funds with depositories that provide the CFTC with read-only electronic access to such accounts.? Read more at https://www.cftc.gov/PressRoom/PressReleases/9024-24. ???

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New H-1B Visa Eligibility Requirements Takes Effect January 17, 2025

The U.S. Department of Homeland Security issued a final rule updating H-1B visa eligibility requirements and other changes it said would give employers greater flexibility in employing skilled foreign workers.? The rule updates the definition of “specialty occupation,” requiring that qualifying degree fields, though varied, must directly relate to the job’s duties to meet the requirement.? Read more at https://www.federalregister.gov/documents/2024/12/18/2024-29354/modernizing-h-1b-requirements-providing-flexibility-in-the-f-1-program-and-program-improvements.?

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The Outlook for VC Looks Sunny for 2025

PitchBook has published its outlook for the venture capital industry and is more optimistic for 2025.? According to PitchBook’s 2025 US Venture Capital Outlook, interest rate cuts should jump-start some long-delayed public listings. Valuations also appear poised for a rebound, and more acquisitions are expected as investors face the acute pressure of liquidity generation.? Access the report at https://pitchbook.com/news/reports/2025-us-venture-capital-outlook. ???

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FCA Proposes Rule Changes to Boost Investment Activity

The Financial Conduct Authority announced a new consultation paper on a new product information regime to help consumers understand the investment products they are buying, while giving firms flexibility to promote innovation.? The stated goal is to empower firms to help consumers make timely, well-informed, and effective investment decisions, in accordance with a firm’s obligation to observe the Consumer Duty.? The rule would apply to different types of funds and structured products.? Read more at https://www.fca.org.uk/publication/consultation/cp24-30.pdf.?

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SEC Charges Transfer Agent with Failure to Safeguard Funds

The U.S. Securities and Exchange Commission announced settled charges against a transfer agent for its failure to assure client funds in its custody and possession were adequately safeguarded against loss, unauthorized disposition, and misappropriation by failing to perform periodic reconciliations of its client escrow accounts and failing to take steps to resolve discrepancies or other problems.? Among other sanctions, the transfer agent agreed to a censure and payment of a penalty to settle the charges.? Read more at https://www.sec.gov/files/litigation/admin/2024/34-101924.pdf.

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ESMA Issues Consulting Paper on?an EU Code of Conduct for Issuer-Sponsored Research

The European Securities and Markets Authority (ESMA) , has launched a consultation to set out standards of?independence and objectivity for research providers?and specifies procedures and measures for the effective identification, prevention, and disclosure of conflicts of interest. This is with a view to enhance the trust in and use of issuer-sponsored research.? The proposal indicates (1) issuers and research providers should only enter into an agreement where the minimal initial term of the contract is two years and where, at minimum, 50% of the annual remuneration is paid upfront, (2) research providers should establish, implement and maintain an effective conflicts of interest policy, and (3) research that is fully paid for by the issuer should immediately be made public.? Read more at https://www.esma.europa.eu/sites/default/files/2024-12/ESMA35-335435667-5921_-_Consultation_Paper_on_RTS_on_Code_of_conduct_for_issuer-sponsored_research.pdf.?

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