UK: SEC Adopts Amendment To Shorten Settlement Cycle For Securities Transactions; Medical Device Company Files Reg A+ Offering, Seeks NYSE MKT Listing; And U.S. DOJ Fraud Section Publishes Guide To Evaluating Corporate Compliance Programs
This week's corporate law news roundup includes discussions
of the SEC's amendment of Rule 15c6-1(a) to shorten the
settlement cycle for securities transactions to T+2, a Regulation
A+ issuer's plan to list its common stock on the New York Stock
Exchange's small-cap market, and the recent publication by the
Fraud Section of the U.S. Department of Justice summarizing key
topics and questions in evaluating corporate compliance
SEC ADOPTS AMENDMENT TO SHORTEN SETTLEMENT CYCLE FOR SECURITIES
TRANSACTIONS TO T+2
On March 22, 2017 the SEC changed its settlement rules so that
"T+3″ will become "T+2″ effective September
5, 2017. The SEC's rules amended Exchange Act Rule
15c6-1(a) to shorten the standard settlement cycle for most
broker-dealer securities transactions. Currently, most
broker-dealer securities transactions must provide for payment of
funds and delivery of securities no later than three business days
after the trade date (known as "T+3″) unless otherwise
expressly agreed to by the parties at the time of the
transaction. The amended rule shortens the standard
settlement cycle to two business days after the trade date
("T+2″). For more information, see https://www.sec.gov/news/press-release/2017-68-0.
MEDICAL DEVICE COMPANY BECOMES FIRST REGULATION A+ ISSUER TO
SEEK NYSE MKT LISTING
Myomo, Inc., a medical device company specializing in orthotics,
is hoping to become the first Regulation A+ issuer to be listed on
the New York Stock Exchange's small-cap market (NYSE
MKT). In its offering statement for a Regulation A+ offering,
which has been qualified by the SEC, Myomo disclosed its intent to
apply to list its common stock on the NYSE MKT. Before Myomo
may commence trading on the NYSE MKT, the offering must be
completed, Myomo must file a post-qualification amendment to the
offering statement and Form 8-A registration statement, and the SEC
must qualify such post-qualification amendment. For more
information, see https://www.sec.gov/Archives/edgar/data/1369290/000121390017001996/f1a2016a3_myomoinc.htm.
U.S. DEPARTMENT OF JUSTICE PUBLISHES GUIDE TO EVALUATING
CORPORATE COMPLIANCE PROGRAMS
The Fraud Section of the U.S. Department of Justice Criminal
Division recently published a summary of important topics and
sample questions that it has frequently found relevant in
evaluating a corporate compliance program. The publication
(entitled "Evaluation of Corporate Compliance Programs")
includes questions covering 11 topics including analysis and
remediation of underlying misconduct; senior and middle management;
autonomy and resources; policies and procedures; risk assessment;
training and communications; confidential reporting and
investigation; incentives and disciplinary measures; continuous
improvement, periodic testing and review; third party management;
and mergers and acquisitions. For more information, see https://www.justice.gov/criminal-fraud/page/file/937501/download.
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