Wealth Professional Canada Magazine’s Post

In our latest Let’s Talk SEC Changes webinar, C. Wallace DeWitt (Counsel, A&O Shearman) and Felix Blumer (Lead Regulatory Expert, FundApps) answer two main questions from the case argued on October 7: ❓ When can we expect the Court’s opinion? ❓ Will there be a remand period? Want to be ready for the January 2 deadline? Watch the webinar on demand and get the insights you need: https://lnkd.in/eSGxm4nR #SECRegulations #RegulatoryCompliance #SECUpdates #FinancialRegulation #SECChanges

In March this year, the U.S. Securities and Exchange Commission issued a rule that investors have long demanded to help them decide which companies to invest in and how to vote their shareholder proxies. The rule will meet that demand by requiring companies to disclose the climate-related risks they face and how, if at all, they are addressing those risks. This information is key, since climate risks are affecting the financial prospects and operations of virtually every company in every industry around the globe. Predictably, a number of business organizations, along with some states, challenged the rule in court, launching a series of now-familiar legal arguments. Today, Better Markets and the Consumer Federation of America submitted an amicus or “friend of the court” brief in the case defending the rule. Read our brief here: https://lnkd.in/eEEx-bji

The Power of Reputation: A Must for Financial Market Entrants This post is for those aspiring to enter the regulated financial market as CEOs, Board Members, senior managers, or shareholders. If you're already in, you know how crucial a strong reputation is for passing regulatory "good repute" tests. Every past wrongdoing, big or small, will be scrutinized. ⛔ Speeding tickets, parking fines, or phone calls while driving? Be prepared to explain why they're not indicative of your character. ⛔ Failing to submit annual financial statements to the registry?  That could raise concerns about your ability to manage a financial institution and submit statements in orderly manner. ⛔ Past involvement in a company with a messy bankruptcy?  Your chances to get approval go down. ⛔ A financial institution bancrupcy?  Nearly impossible. ⛔ Close ties with "shady" individuals?  This could hinder your ability to operate a regulated business in eyes of regulator. While reputation might not be as critical in non-financial sectors, it's a major factor in the financial world. Past actions can have long-lasting consequences. And I have seen many, many examples of those who didn't pass the "good repute" test because of combination of different factors that weren't thought about in early days. Safeguard your reputation now, just in case your future plans include entering the financial market. #reputationmatters

Disgruntled investors are increasingly taking advantage of the regime contained within the Financial Services and Markets Act 2000 (FSMA) to seek compensation from issuers of publicly traded securities in the UK for losses suffered as a result of misleading or incomplete information disseminated to the market. In our recent round-up, we consider the FSMA regime in action, the factors contributing to the growth of UK securities litigation and the key issues and emerging trends that we are seeing and grappling with in this space.     Read the article, part of the 2024 edition of the Dispute Resolution Yearbook, here: https://lnkd.in/eMavVTc6

Information leakage prior to market switches and the importance of Nominated Advisers @Antonios Siganos, Angelos Synapis, Yannis Tsalavoutas University of Glasgow Adam Smith Business School https://lnkd.in/d_hvVQwW Abstract This study tests the information leakage hypothesis prior to the public announcement of firms switching between the Alternative Investment Market (AIM) and the Main Market (MM) in the UK. We find significant abnormal stock returns 60 trading days prior to the announcement of these switches. The results are robust after controlling for switching anticipation, rumors, other major corporate announcements, and firm performance a year prior to the switch. We also show that having a reputable Nominated Adviser (Nomad) significantly moderates the abnormal stock returns prior to market switches. However, this effect does not hold when Nomads also act as brokers in firms that switch markets. Overall, these findings provide novel evidence about abnormal stock returns prior to the announcement of market switches in the UK and the role of Nomads. As such, we shed light on the significance and the limits of decentralized regulation on informed trading activity.

🌍 **A Landmark Moment in Finance: The 2022 Global Securities Scandal** 🌍 Imagine this: The Global Securities Network (GSN), once esteemed in financial circles, found itself at the center of a 2022 scandal that reverberated worldwide. This wasn't just a crisis—it was a catalyst for change in financial consumer safety. Here's how it unfolded?? 🔎 **Initial Clues:** Investors in Germany first spotted anomalies in their quarterly statements. Their so-called 'safe' investments were anything but. As concerns spread, the issue ballooned to GSN's global operations. 🌪️ **The Unraveling:** Investigators uncovered a startling truth: lax compliance measures. Products were marketed without proper risk details, leaving individuals ill-equipped to shield their assets. ⚡ **Crisis and Opportunity:** The revelations sent shockwaves through the financial community and served as a crucial wake-up call for the entire sector. 🤝 **International Collaboration:** This scandal prompted regulators, experts, and consumer champions to unite. Dissecting the crisis, they forged a collaborative path to bolster consumer safeguards globally. 📜 **Regulatory Overhaul:** Insights from the scandal paved the way for new regulations. Transparency became a cornerstone, ensuring all financial products had full risk disclosures, empowering consumers with essential insights. 📚 **Consumer Education & Empowerment:** GSN didn't just fix its errors; it launched a global drive to educate investors, empowering individuals to protect their financial interests. This case proves the power of collaboration and vigilance, highlighting the importance of dynamic consumer protection measures in an ever-evolving financial landscape. #FinancialReform #ConsumerEmpowerment #GlobalImpact #FinanceEducation

Continued market appetite and increased regulatory scrutiny - our Private Assets series kicks off with this article:

Really interesting first article in a series from our Regulatory Insights Centre on the continued growth of private assets and the on-going focus from global regulators.

Explore a comprehensive overview of proposed private fund rules for informed insights on regulatory changes. Read the commentary here: https://bit.ly/3U9SEN5

In this Public Chatter blog post, partner Allison Handy describes the latest guidance from the U.S. Securities and Exchange Commission Enforcement Staff about the value of cooperation. #CorpGov #CorporateGovernance #ESG #PublicChatterBlog