United States: Sweeping Federal Financial Reform Act Enacted: What the Dodd-Frank Wall Street Reform and Consumer Protection Act Means for Public Companies
On July 21, 2010, President Obama signed into law the Dodd-Frank
Wall Street Reform and Consumer Protection Act (the
"Act"). The Act provides the most sweeping overhaul of
the regulation of the U.S. financial services industry and
financial markets since the aftermath of the Great Depression. The
Act represents Congress' attempt to address the myriad of
issues arising out of the financial crisis and marks the conclusion
of over a year's effort to craft a legislative solution
designed to avoid another financial crisis. The legislation
requires an overhaul of the regulatory landscape and establishes a
new regulatory scheme to govern certain public companies, banks,
insurance companies, hedge funds, as well as other companies in the
financial services industry.
The new legislation is designed to address systemic risk in the
U. S....
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The SEC proposed regulations that will replace Rule 12b-1 with new regulations "designed to enhance clarity, fairness and competition when investors buy mutual funds," according to SEC Chairwoman Mary Schapiro.
The Securities and Exchange Commission has adopted new Rule 14a-11 under the Securities Exchange Act of 1934 that will require public companies to permit any shareholder or group of shareholders owning at least 3% of a public company’s voting stock for at least three years to include director nominees in company proxy materials.
Welcome to this month's issue of the Heavyweight. To whet your appetite before diving into this relative short issue, you will see reference to an article on the possible abolition of s. 4 Statute of Frauds Act (under Documentation), a plea from the Ministry of Justice for evidence in the continuing attempt of the EC to create a European Contract Law (Contract) and a case on the competition aspect of a confidentiality clause (Competition).
On August 25, 2010, the Securities and Exchange Commission ("SEC"), by a 3-2 vote, adopted new Exchange Act Rule 14a-11 and related rule amendments, which are commonly referred to as the "proxy access" rules.
Earlier in 2010 we featured the article "M&A transaction or IPO: Why not pursue both?" in which Stikeman Elliott M&A partner Curtis A. Cusinato discussed the advantages of "dual-track" IPO/M&A process
In mid-August, it was reported in the press that the National Development and Reform Commission (NDRC) had received complaints that the commercial banks in China have engaged in price-fixing conduct. Pursuant to the Anti-Monopoly Law, conduct amounting to price-fixing is prohibited.
As a source of steady income, trust companies had been taking loans off the books of banks and repackaging them up as trust products. China Banking Regulatory Commission ("CBRC") became alarmed when the volumes grew too big and in early July, CBRC abruptly closed down the entire business by ordering trusts to halt all cooperation with banks.
