layton
18 hours ago
The Expert Market is a distinct market tier that allows broker-dealers to trade securities with regulatory and other restrictions. It has grown in response to recent amendments to SEC Rule 15c2-11. Under that rule, when companies fail to publish required current information, brokers may only publish unsolicited quotes, meaning quotes representing limit orders from investors who are not company affiliates or insiders. Following changes to Rule 15c2-11, in September 2021, the Expert Market expanded to include thousands of these “dark” securities. As an additional protection, Expert Market quotes are distributed only to broker-dealers, institutions, and accredited investors.
Dingbatt
18 hours ago
Justice Gorsuch’s concurrence in West Virginia v. EPA
What Is Compliance Cost?
Compliance cost refers to all the expenses that a firm incurs to adhere to industry regulations. Compliance costs include salaries of people working in compliance, time and money spent on reporting, new systems required to meet retention, and so on.
Key Takeaways
Compliance costs refer to all of the expenses a company must incur in making sure they adhere to industry regulations.
The costs of compliance include the payroll for the compliance department, regulatory reporting costs, and any systems required for the process.
Compliance costs for a company increase as the regulation standards in an industry increase and as a company expands globally.
The areas in which a company must ensure they comply include the environment, human resources, independent audits, regulatory filings, financial accounting standards, and so on.
authorized becomes a “major question” imposing a heavy burden on the agency if the rule (1) addresses a topic of political controversy, (2) affects a significant part of the economy, (3) imposes large compliance costs, (4) intrudes into states’ rights, or (5) reverses a prior agency rule or interpretation.[5]
Number 1/?
Number2/Yes every body on the OTC
Number3/ Absolutely
Number4/?
Number5/Absolutely
Dingbatt
19 hours ago
Gary Gensler Assumed office April 17, 2021
Signature Bank was shut down on March 12, 2023
But adding fuel to the litigation fire are more claims premised on basic statutory authority. Chevron[2] deference is still nominally the law as of this writing,[3] but litigants are acting as if the decision that gave that doctrine its name has already been overturned. The lack of deference seemingly expected of courts by plaintiffs has only been reinforced by the “major questions doctrine,” a nominally “interpretive” principle given dramatically increased prominence by the U.S. Supreme Court in West Virginia v. EPA in 2022.[4] The potential breadth of the “major questions” doctrine was clear from Justice Gorsuch’s concurrence in West Virginia v. EPA. In it, Gorsuch asserted that the question of whether a rule is authorized becomes a “major question” imposing a heavy burden on the agency if the rule (1) addresses a topic of political controversy, (2) affects a significant part of the economy, (3) imposes large compliance costs, (4) intrudes into states’ rights, or (5) reverses a prior agency rule or interpretation.[5]
Dingbatt
19 hours ago
Of particular Interest
How much litigation is the SEC’s rulemaking encountering? Here, the story and trend are quite different. Recognizing that sometimes lawsuits take some time to initiate, a straight comparison of lawsuits challenging rules to date should show fewer challenges to the current SEC’s rules than to prior SEC rules. Yet Gensler’s SEC’s final rules have already attracted as many lawsuits as the three long-serving prior chairs combined. Expressed as a rate, the time series shows a distinct “hockey stick” shape in the pattern of litigation: 3 percent of the Schapiro SEC non-technical rules attracted lawsuits, a rate that slightly more than doubled under White and Clayton. By contrast, Gensler’s SEC has been sued 21 percent of the time for its non-technical final rules. Rules attracting lawsuits include those governing Proxy Advisors, Buyback Disclosure, Securities Lending, Short Sales, and Private Funds.
It is too early in the litigation process to predict with confidence how well the SEC will do in court. Some lawsuits may be low-odds rolls of the dice by well-funded trade groups. But we can already see the nature and breadth of the types of challenges and where they have been brought. In both respects, litigation has shifted, along with the overall rate. Claims continue to be made based on the Administrative Procedures Act, long a staple of challenges to rule changes. These include challenges alleging insufficient – or what a panel of generalist judges say is inadequate – cost-benefit analysis.
https://clsbluesky.law.columbia.edu/2024/02/14/sec-rulemaking-and-litigation-in-chair-genslers-first-1000-days/