In its August 24, 2023 decision, a three-judge panel of the United States Circuit Court of Appeals for the Second Circuit held in Kirschner v. JP Morgan that notes issued as part of a syndicated term loan transaction ("Notes") were not securities. In doing so, the court applied the...
On July 26, the SEC proposed sweeping new regulatory requirements to address purported risks to investors from conflicts of interest associated with the use of "covered technologies" by investment advisers and broker-dealers (collectively, "firms"). Proposed rules 15l-2 under the...
In November 2022, ICI filed an amicus brief in Matney v. Barrick Gold, urging the Tenth Circuit Court of Appeals to affirm the district court's dismissal of a retirement plan fee case. On September 6, 2023, the Tenth Circuit issued an opinion (attached below) affirming the dismissal...
The SEC recently issued its Safeguarding Advisory Client Assets Proposal (Proposal), which would expand the scope of the current Investment Advisers Act custody rule (Rule 206(4)-2) and impose significant new requirements on qualified custodians and investment advisers that have...
On September 11, the Division of Clearing and Risk (DCR) and the Market Participants Division (MPD) (together, "the Divisions") of the CFTC issued Letter No. 23-13, which extends previously issued no-action relief regarding the treatment of separate accounts by futures commission...
ICI Global has filed comments with the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) regarding their recent Consultations on liquidity risk management in open-ended funds (OEFs). This memorandum summarizes ICI Global's comments.
As previously reported, the SEC and the CFTC recently proposed amendments to the rules for covered clearing agencies (CCAs) and derivatives clearing organization (DCOs), respectively, related to resiliency, and recovery and wind-down plans (RWPs).
For your review is a draft joint letter from the ICI and the Investment Association to the European Commission re the recently proposed Council Directive (known as "FASTER") for improving tax treaty relief on cross-border investments. The letter focuses on the impact of the FASTER...
On September 11, 2023, ICI, along with 13 other trade associations, filed a letter with the Securities and Exchange Commission (SEC or "Commission") raising serious concerns regarding the Commission's recent proposal on conflicts of interest associated with the use of predictive data...
Last week, the U.S. Court of Appeals for the D.C. Circuit vacated a Securities and Exchange Commission order denying Grayscale Investments, LLC, from listing and trading a spot bitcoin fund on a national securities exchange. In its opinion, the court held that the SEC failed to treat...
On September 6, 2023, the SEC's Division of EXAMS published a Risk Alert that provides some transparency into the Division's examination of registered investment advisers. The Risk Alert discusses how the Division selects firms to examine, how it determines the focus areas for exams...
On September 6, 2023, the SEC issued an order, in a 3-2 vote, approving amendments related to the National Market System (NMS) Plan governing the funding model for the Consolidated Audit Trail (CAT). The full order is available here, the fact sheet is available here, and the press...
Last Friday, the SEC issued a new amended order to direct the SROs (exchanges and FINRA) to submit a new NMS governance plan for consolidated equity market data. The SROs must submit the new proposed plan to the SEC within 45 days after the amended order is published in the Federal...
IRS and Treasury on August 25, 2023, issued Notice 2023-62, which effectively provides for a 2-year delay (until taxable years beginning after December 31, 2025) of the applicability of section 603 of the SECURE 2.0 Act, which requires that catch-up contributions made by certain...
On July 26, 2023, ICI Global—together with the Asia Securities Industry and Financial Markets Association's Asset Management Group (ASIFMA AMG), the European Fund and Asset Management Association (EFAMA), and the Securities Industry and Financial Markets Association's Asset Management...
On August 23, the SEC reopened the comment period for its proposal on Safeguarding Advisory Client Assets ("proposal"). The proposal would amend and redesignate Rule 206(4)-2 under the Investment Advisers Act ("custody rule") to enhance investor protections relating to the...
On August 23, 2023, the SEC adopted new rules and rule amendments under the Investment Advisers Act of 1940 ("Advisers Act") to reform the regulation of private fund advisers ("Private Fund Rules") and update the existing compliance rule that applies to all investment advisers (...
ICI on August 23, 2023, submitted a comment letter (Letter) to the IRS and Treasury addressing SECURE 2.0 Act section 305, which amends the Employee Plans Compliance Resolution System (EPCRS), and IRS Notice 2023-43, which provides interim guidance under section 305.
We recently submitted the attached letter to the SEC noting that it has issued a wide range of interconnected rule proposals (the "Interconnected Rules") over the last two-and-a-half years but has failed to consider and analyze the Interconnected Rules holistically.
The Tax Advisory Committee will convene on November 2, 2023, from 10:00 a.m.–12:30 p.m. (ET) at ICI's office located at 1401 H Street, NW, Washington, DC. An agenda will be circulated prior to the meeting. Please note that this meeting will be held in person; no virtual option is...
The US Government Accountability Office (GAO) recently published two reports examining retirement savings in the US, one focused on 403(b) plans and the other focused on retirement account disparities by race and income.
This memorandum catalogues significant ESG related developments that have occurred since February 2, 2023. It references ICI memoranda that provide a more fulsome description of each matter. You can find all of these memoranda on our website in our ESG Resource Center.
On August 10, 2023, the Securities Industry and Financial Markets Association filed a complaint in the US District Court Western District for the State of Missouri challenging two new Missouri Securities Division rules that would require specified financial professionals to obtain a...
