FiSolve Weekly News Digest (November 24, 2023)

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

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The U.S. Securities and Exchange Commission charged a?crypto trading platform for operating as an unregistered securities exchange, broker, dealer, and clearing agency.? According to the SEC’s complaint, during the past several years, the platform’s sponsor received hundreds of millions of dollars by unlawfully facilitating the buying and selling of crypto asset securities. ?The SEC alleges these activities intertwined the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the SEC as required by law.? The complaint also alleges deficient internal controls, poor recordkeeping practices, and unlawful commingling of customer crypto assets with its own assets. ?The SEC seeks injunctive relief, conduct-based injunctions, disgorgement of ill-gotten gains plus interest, and penalties.? Read more at https://www.sec.gov/files/litigation/complaints/2023/comp-pr2023-237.pdf.

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A group of five industry groups have brought a lawsuit seeking to overturn a recently adopted U.S. Securities and Exchange Commission rule that, among other things, requires additional disclosure from private fund advisors, prohibits certain fee arrangements and prohibits other longstanding practices.? The suit alleges the new rule (1) exceeds the SEC’s statutory authority, (2) denied the public meaningful opportunity for comment, (3) is arbitrary, capricious, and otherwise unlawful, (4) fails to adequately and realistically substantiate the Rule’s costs and benefits, and (5) fails to consider the cumulative effect of the SEC’s numerous pending rules.? Read more at https://www.gibsondunn.com/wp-content/uploads/2023/11/NAPFM-Brief.pdf.? ???

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?A 仲量联行 survey reveals employer and employee feelings towards the hybrid word environment.? The survey funds 87% of employers encourage working from the office at least some of the time, with 33% mandating some form of in-office attendance.? Hybrid work remains the strong preference for employees worldwide.? Globally, the survey finds employees are spending an average of 3.1 days in the office.? 20% of employees work fully remote or just one or two days a week in the office; 39% said this one year ago.? Read more and download the survey at https://www.us.jll.com/en/trends-and-insights/research/is-hybrid-really-working.?

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The U.S. Commodity Futures Trading Commission announced the former Chief Compliance Officer of the largest cryptocurrency exchange (in terms of daily trading volume of cryptocurrencies) has agreed to a proposed consent order for a permanent injunction, a $1.5 million civil monetary penalty, and equitable relief in a settlement.? The settlement remains subject to court approval.? Read more at https://www.cftc.gov/PressRoom/PressReleases/8826-23.?

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The European Securities and Markets Authority (ESMA) is changing its Union Strategic Supervisory Priorities (USSPs) to focus on cyber risk and digital resilience alongside ESG disclosures.? The new USSP will come into force in 2025, at the same time as the Digital Operational Resilience Act (DORA). This timeline is intended to provide supervisors and firms in Member States with sufficient time to prepare for compliance with the new regulatory requirements.? In addition, ESMA and National Conduct Authorities will continue their work, respectively, on the second priority – ESG disclosures. The aim is reportedly to tackle greenwashing, increase investors understanding, and embed sustainability requirements when firms advise investors. ESG disclosures will remain the focus in 2024 across key segments of the sustainable finance value chain such as issuers, investment managers and investment firms.? Read more at https://www.esma.europa.eu/press-news/esma-news/esma-put-cyber-risk-new-union-strategic-supervisory-priority.?

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The Financial Conduct Authority announced the Temporary Permissions Regime, which allowed EEA firms to continue to operate in the UK while transitioning to the full UK regulatory regime, is coming to an end after 3 years.? The FCA said it is assessing the last of the firms in the regime for full authorization, including some firms that offer regulated lending products, but also offer unregulated Buy Now Pay Later products.? Read more at https://www.fca.org.uk/news/news-stories/unregulated-bnpl-firms-becoming-authorised.?

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