SEC/CFTC Report on Harmonization of Regulation and How it May Affect Investment Advisers
By: Lawrence B. Patent, Mary C. Moynihan
On October 16, 2009, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued “A Joint Report of the SEC and the CFTC on Harmonization of Regulation” (Report). The Report was issued in response to a request in the Administration White Paper on Financial Regulatory Reform.
The Report contains 20 recommendations. This Alert will focus upon the recommendations in the Report that may be of greatest interest to investment advisers: (1) the potential “uniform” standards of “fiduciary” duties for persons providing investment and commodity trading advice for securities and futures; (2) aiding and abetting liability under the Securities Act and the Investment Company Act; and (3) aligning the reporting requirements for private funds. The Alert also discusses the other recommendations, some of which may indicate enhanced opportunities for portfolio margining across markets and the prospect of greater clarity and expedited judicial review of new products that straddle jurisdictional lines.
To view the complete alert online, click here.
