RegAlytics Weekly Alerts – 3.23.2022

RegAlytics Weekly Alerts – 3/23/2022?

Welcome to this week’s regulatory roundup. These are the most relevant and interesting alerts from the 5,798 we had last week.??

Regulator of the Week: SEC?

The Regulator of the Week is, you guessed it, the SEC.??

SEC: Allison Herren Lee Stepping Down?

I never thought I would reach the point where I viewed leadership changes at regulators the same way someone would view a baseball player being traded, but here I am.? Last week Allison Herren Lee at the SEC gave notice that she will not seek a second term as Commissioner.? I will miss her thoughtful statements on SEC rules.?

Statement by Gary Gensler, Chair, U.S. Securities and Exchange Commission: Planned Departure of Commissioner Allison Herren Lee?

Statement by Allison Herren Lee, Commissioner, U.S. Securities and Exchange Commission: Planned Departure from the Commission??

SEC: Climate Financial Risk Disclosures?

This week the SEC raised a LOT of eyebrows by proposing rule changes for companies to include climate-related disclosures in their registration statements and periodic reports.? There was plenty of disagreement between the Commissioners and other regulators including House and Senate members, and here’s why.? Most of the objections are arguing that it’s not the SEC’s job to police climate risk and that this will force all publicly traded companies – including those where climate risk has material impact – to report on global warming data.? On the other hand, the US is right now one of the only major countries in the world that HASN’T addressed the risk of climate change on the economy.? Some folks also think the point here is about investors and if you are investor in a company, you have a right to know material risks that the company is taking, and it is a legitimate possibility that climate change will have material risks to investments.??

MAS and CDP to Jointly Promote Access to Quality ESG Data?

SEC Proposes Rules to Enhance and Standardize Climate-Related Disclosures for Investors?

Statement by Caroline A. Crenshaw, Commissioner of the U.S. Securities and Exchange: the Enhancement and Standardization of Climate-Related Disclosures for Investors?

Statement by Gary Gensler, Chair of the U.S. Securities and Exchange: Proposed Mandatory Climate Risk Disclosures?

Statement by Allison Herren Lee, Commissioner of the U.S. Securities and Exchange: Shelter from the Storm - Helping Investors Navigate Climate Change Risk?

Statement by Hester M. Peirce, Commissioner of the U.S. Securities and Exchange, on Proposed Mandatory Climate Risk Disclosures?

The Enhancement and Standardization of Climate-Related Disclosures for Investors?

Statement by Janet L. Yellen, Secretary of the Treasury, on SEC Proposal to Enhance and Standardize Climate-Related Disclosures for Investors?

Statement by Senator Sherrod Brown, Chair of the Senate Committee on Banking, Housing, and Urban Affairs, After the Securities and Exchange Commission (SEC) Proposed New Climate Disclosures Rules?

Statement by Pat Toomey, Ranking Member, U.S. Senate Banking Committee: SEC Proposal to Mandate New Global Warming Disclosures?

SEC: Definition of Exchange Includes ATS?

Also, this week, the SEC is proposing to revise the definition of exchange so it would incorporate certain companies involved in the trading process be bound to register.? If you are a fintech involved with alternative trading systems or otherwise a support to exchanges, I would look to see if this impacts you.?

Amendments to the Definition of Exchange, Alternative Trading Systems that Trade U.S. Government Securities, National Market System Stocks, and Other Securities?

FinCEN: Alert on High End Russian Goods?

The Topic of the Week is Russia/Ukraine and now Belarus. FinCEN issued an alert to report any transactions with Russian elites and their family members.? This could be related to real estate, luxury goods, and other high-value assets so even if you some rich Joe Schmoe about to buy cool looking boat, you better do your diligence and make sure the owner isn’t related to any of these sanctioned individuals.? When it doubt, report, report, report.?

FinCEN Alert on Real Estate, Luxury Goods, and Other High-Value Assets Involving Russian Elites, Oligarchs and Their Family Members?

UK: No More Tax Sharing with Russia?

Also: the UK has formally suspended its participation in tax treaties with Russia. So, my FATCA and global tax friends, make note of that.?

U.K. Suspends Tax Co-operation with Russia?

?States Respond to Ukraine Attacks?

Overall, there were a whopping 164 alerts on the topic of the week, but I am still focusing in on how the states are responding to this.? Alaska is working to ban any state investments in Russia. Georgia is trying to prevent Russian companies for bidding any state government contracts.? Maryland is banning its state pension system from having any Russian investments and Utah is prohibiting Russian brand imports.?

Senate Bill SB235: No State Investment in Russian Federation (32nd Legislature)?

Senate Bill SB562: Companies Owned or Operated by Russia (Regular Session)?

Senate Bill SB1005: State Retirement and Pension System: Divestment from Russia (2022 Regular Session)?

Utah State Bulletin, Volume 2022, No. 6?

?ARRC: LIBOR Federal Solution?

For those of you following the LIBOR transition: a big Easter came through early.? Last week Biden signed the Consolidated Appropriations Act, 2022, which sent a whopping $13B to Ukraine, but it also contains critical legislation related to LIBOR that folks have been waiting for.? It basically has a plan set up in case your financial institution didn’t.? That hasn’t stopped the states from issuing their own.???

ARRC Welcomes Passage of Federal LIBOR Transition Legislation in Omnibus Spending Package?

TN: LIBOR Discontinuance?

Tennessee, for example, signed into law its own LIBOR Transition Act this week as well.?

Senate Bill SB2133:? Financial Transactions (112th General Assembly)?

?DOL: Wage Gap for Women?

For those of you following labor and employment alerts, the DOL came out with the latest stats and they’re still not great.? In the US, women are paid, on average, 83% of what men are paid.???

Connecting the Dots: Women's Work and the Wage Gap?

CA: Cannabis Labels?

The Weed Feed was also pretty exciting this week.? California is proposing a new cannabis labeling law where a warning label needs to cover at least 1/3 of the front or principal face of a product.??

Senate Bill SB1097: Cannabis and Cannabis Products: Labeling and Advertisement (Regular Session)?

?CO: Employers & Marijuana?

Colorado is proposing to prohibit employers from taking action against an employee for smoking weed.? If it’s medical, they are allowed to smoke on premise during working hours.? If it’s for fun, they can do it off the premises during nonworking hours.??

House of Representatives Bill HB1152: Employer Adverse Action Marijuana Use (2022 Regular Session)?

NJ: Accepting Cannabis Dispensary Licenses?

The New Jersey Cannabis Regulatory Commission began accepting license applications for cannabis dispensaries Tuesday morning at 9:00 a.m. and by 4:00 p.m., 172 applications had been completed.?

NJ-CRC Begins Accepting Applications for Cannabis Dispensaries?

SD: 6 Medical Cannabis/Hemp Laws Enacted?

Finally, the Governor of South Dakota who has been working so hard to defeat Idaho as the least regulated state just signed six medical cannabis and hemp bills into law.?

Governor Noem Signs Medical Cannabis and Hemp Bills into Law?

You Need a Plan For Regulatory Change!?

So that’s it this week for RegAlytics. We have the most comprehensive, coherent and customizable regulatory alerts tool in the world.? Come and see how company after company is transforming their compliance with this kind of transparency.? See you next Wednesday!?

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