Securities and Exchange Commission Chairwoman Mary Jo White told a congressional subcommittee that the regulator is examining the practice of settling cases with defendants without requiring an admission of guilt. White also defended the policy. "It is a very good end in many cases," she said. "It saves resources and you do not incur the litigation risk, and you get lots of money to investors a lot quicker."
The Commodity Futures Trading Commission recently issued a no-action letter that offers swap dealers and major swap participants a reprieve from providing counterparties on some foreign-exchange transactions a pre-trade mid-market mark. However, market participants say the no-action letter is too late.
The Financial Industry Regulatory Authority says some brokers are misleading clients about the potential benefits of non-traded real estate investment trusts. FINRA officials say that some materials emphasize investment income but don't make it clear that the investor's principal may be tapped. FINRA has warned brokers not to use words such as "yield" and to spell out rules on redeeming investments.
Carlo di Florio, head of the Securities and Exchange Commission's national examination program, is taking a new job as head of the Financial Industry Regulatory Authority's recently created risk and strategy office. Di Florio, who joined the SEC in light of the Bernard Madoff scandal, will be replaced by Andrew Bowden, who is now serving as the SEC's deputy director of compliance, inspections and examinations.
The Securities and Exchange Commission has been talking about establishing a fiduciary standard for brokers for a few years, but it appears poised to start taking concrete steps. Chairwoman Mary Jo White has noted "appropriate standards" for investment advisers and broker-dealers as a priority.