All articles by Joe Mont – Page 61
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The ‘Shalt Nots’ of GRC Implementations
There is no shortage of vendors and products in the governance, risk, and compliance software space. Choosing the wrong one can be disastrous. Just as problematic, however, is pairing a poor implementation strategy with even the best of solutions. Missteps can lead to employee revolts, cost overruns, delays, and ineffective ...
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Is the FAST Act Really Just the JOBS Act 1.5?
Amid speculation of when, or if, Congress would get around to a JOBS Act 2.0—a sequel to a 2012 package of securities law reforms—some of those items surprisingly appeared in a new spending bill for transportation infrastructure. Tucked into the bill are a variety of requirements for the SEC regarding ...
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Blog
SEC Considers Derivatives Rules for Registered Funds
The SEC has proposed rules that, once finalized, will modernize and enhance existing regulations placed on the use of derivatives by registered investment companies. The proposed rules would limit the use of derivatives by mutual funds, exchange-traded funds, closed-end funds, and business development companies. It also requires them to establish ...
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Blog
SEC Makes Second Attempt at Extractive Payments Rule
The SEC re-proposed its extractive payments rule on Friday. The controversial rule, already vacated once by an industry lawsuit, requires public companies to report annually payments they, subsidiaries, and entities they control make to governments for the commercial development of oil, natural gas, or minerals. Initial comments on the proposed ...
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SEC Offers First Batch of FAST Act Guidance
The Securities and Exchange Commission’s Division of Corporation Finance has weighed in on the passage of the Fixing America's Surface Transportation (FAST) Act last week with new Compliance and Disclosure Interpretations related to provisions that affect federal securities laws.They address legislative efforts to reduce disclosure burdens on emerging growth companies.
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Blog
Bills Advance to Sharpen SEC’s Small Business Focus
The House Financial Services Committee has approved a slate of bipartisan bills and resolutions intended to “protect consumers, grow the economy, strengthen government transparency, and help lead the fight against terrorists.” Among the bills is legislation that establishes an Office for Small Business Capital Formation within the SEC and ...
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Blog
Bill Would Force Tech Companies to Report Terrorist Activity
Social media sites would be required to report terrorist activity on their networks if newly reintroduced legislation gains needed support. The Requiring Reporting of Online Terrorist Activity Act would require technology companies to alert law enforcement agencies to online terrorist activity. The bill stops short, however, of requiring companies to ...
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Article
AML Regulations in NY Force CCOs to Rethink Everything
Earlier this month New York officials proposed new anti-money laundering regulations for financial institutions that fall under that state’s regulatory regime and supervision—which pretty much includes every major international bank in the world. Along with heightened demands for monitoring programs that detect money laundering red flags, the requirements seek to ...
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SEC’s Concerns Prod a Rethinking of Outsourced Compliance
Image: Faced with budget constraints, firms frequently turn to external professionals to supplement compliance programs—but the SEC has provided a laundry list of problems with that approach. “The SEC has not banned outsourced compliance in any way or said it is presumptively disfavored, but reading between the lines you get ...
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Blog
SEC Takes Another Crack at Extractive Payments Rule
After years of delays and lawsuits, the Securities and Exchange Commission will meet on Friday morning to debate whether it is ready to propose a new rule that requires publically traded oil, gas, and mining companies to disclose payments made to governments for extraction rights. The Dodd-Frank Act mandate led ...
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Blog
NY’s New AML Rules Seek Enhanced Monitoring, Attestations
Image: New York Governor Andrew Cuomo has proposed a slate of new anti-money laundering and anti-terrorism regulations for financial institutions that fall under that state’s supervision. They include a requirement that senior financial executives certify their institutions have sufficient systems in place to detect, weed out, and prevent illicit transactions, ...
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Blog
Aguilar Explains It All: Advice for Future SEC Commissioners
Image: As he moves on from the Securities and Exchange Commission, Luis Aguilar has a parting gift for future commissioners who will follow in his footsteps. He has issued a public statement, likely his last as a commissioner, to share what he has learned about navigating the unique challenges that ...
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Amid Financial Reporting Changes, SEC Offers Cautions
With changes looming on accounting standards for revenue recognition, leases, financial instruments, and more, skittish corporate accountants often turn to the SEC’s Division of Corporation Finance and staff accountants, relying on phone briefings and pre-clearing consultations to get ahead of financial reporting issues before they result in an SEC comment ...
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SEC Girds for Next Wave of Political Battles
On paper, the next several months mark the final stretch for the SEC’s implementation of Dodd-Frank Act rulemaking. In reality expect continued battles over the law, waged by both Republicans and Democrats. Recent congressional hearings gave a sense of what’s to come: stress tests for asset management funds, fights over ...
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Blog
Fed Puts New Limitations on Bank Bailouts
The Federal Reserve Board has clarified its procedures for emergency lending to banking institutions and placed new restrictions on future bailouts. A final rule, approved Monday and effective on Jan. 1, broadens the existing definition of insolvency and requires that emergency lending be approved by the Treasury Department. These and ...
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Blog
Fed Proposes Liquidity Disclosures, Will Improve Examinations
Image: There was a warning last week from Fed Governor Daniel Tarullo to expect an increase to stress test minimum capital requirements and a proposed rule requiring banks to publicly disclose aspects of their liquidity profile. Also announced was an effort to improve the consistency of supervisory examinations and a ...
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Article
Companies Aren’t Waiting for SEC to Revamp Financial Disclosures
A new survey that many companies are not waiting for the SEC to complete its anticipated review of disclosure requirements; some are already taking matters into their own hands, and they have advice for others who want to get ahead of the process. “Be aggressive,” says David Cornish, deputy comptroller ...
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Cloud Security Is a Challenge for Users and Providers
As more cloud storage providers evolve from consumer-based products to enterprise-grade services, compliance challenges are evolving along with them. Before entering into a service contract, companies must determine whether their data will be safe and all is in compliance with a growing list of regulations and security frameworks. The added ...
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Blog
ISS, Glass Lewis Revamp Proxy Season Policies
Prominent proxy advisers Institutional Shareholder Services and Glass Lewis have updated their voting policies for upcoming shareholder meetings and are looking ahead to 2017 proxies by clarifying their stance on director overboarding, unilateral board actions, problematic pay practices, and the responsibilities of directors for oversight of environmental and social issues ...
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Blog
SEC Proposes Rules for Alternative Trading Systems
The SEC has proposed rules intended to enhance regulatory oversight of alternative trading systems that, because of their off-exchange equity deals, are often described as “dark pools.” They would be required to disclose on a new Form ATS-N details about the activities of broker-dealer operators. The proposal also requires all ...