Welcome to our biweekly recap, where we compile the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to regulatory compliance, industry news, and critical updates.
Today’s recap focuses on the SEC’s approval of a spot-ether, an update on the DOL rule, FINRA’s remote inspection pilot program, Reg BI, and the impact of the Supreme Court’s ruling on the Chevron Defense.
Here are our top compliance articles as of August 2, 2024:
Second court blocks all aspects of DOL’s fiduciary rule (Author – Emile Hallez, Investment News)
A case brought by multiple insurance groups has resulted in a temporary stay on the DOL’s new Fiduciary Rule and its associated exemptions. At the center of the case is the DOL’s expanded definition of fiduciary, which, according to the plaintiffs would incur, “alleged harm [that] includes increased compliance costs and higher regulatory burdens, as many insurance agents who never have had to comply with the Employee Retirement Income Security Act would become fiduciaries in connection with one-time annuity sales in IRA rollovers, according to the court records.”
According to the article, the cases are expected to be appealed.
SEC approves spot-ether ETFs in latest crypto milestone (Author – Emily Graffeo and Suvashree Ghosh, Financial Planning)
“Regulators approved the first U.S. exchange-traded funds investing directly in ether, the world’s second-largest cryptocurrency, according to filings and statements from asset managers.”
Hundreds of Finra member firms join remote inspections pilot (Author – Steve Randall, Investment News)
741 FINRA members, or 22% of member firms, have joined phase 1 of FINRA’s remote inspection pilot program.
“Eligible member firms can satisfy their obligations for inspections without an office or branch visit. However, they need to ensure that a risk assessment is documented and that there are satisfactory supervisory procedures for the inspection and reporting of data to Finra.”
It’s Time for a Reg BI Crackdown at SEC: Ex-Commissioner (Author – Melanie Waddell, Think Advisor)
A panel of experts shared their thoughts regarding both the SEC and FINRA’s enforcement actions related to Reg BI, with multiple panelists in agreement that more enforcement is necessary. FINRA has settled around 30 cases regarding Reg BI, while the SEC has made it an examination priority.
Additionally, questions were raised regarding whether Reg BI is enough to protect investors should the DOL’s Fiduciary Rule be overturned.
DOL’s ESG rule an early test of Supreme Court’s Chevron reversal (Author – Emile Hallez, Investment News)
The DOL’s ESG rule is under the microscope following the recent overturning of the Chevron Defense by the Supreme Court, pointing to the potential impact this decision could have on future rulings.
“In the challenge to the DOL’s ESG rule, which was brought by 26 states, neither the plaintiffs nor defendant relied on the Chevron deference in their recent arguments – something the appellate court noted. However, the district court’s opinion to uphold the rule did include an analysis of the agency’s authority based on the Chevron doctrine, Leen said.”
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