ARTICLE
2 July 2021

SEC Sends Congress Report On Office Of Investor Advocate FY2021 Priorities

CW
Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
In its Report on Objectives for Fiscal Year 2022, the SEC Office of the Investor Advocate ("OIA") stated that it will focus on environmental, social and governance disclosure, Rule 10b5-1 plans, capital-raising alternatives, equity market structure and cryptocurrency.
United States Corporate/Commercial Law

In its Report on Objectives for Fiscal Year 2022, the SEC Office of the Investor Advocate ("OIA") stated that it will focus on environmental, social and governance disclosure, Rule 10b5-1 plans, capital-raising alternatives, equity market structure and cryptocurrency. Submission of the Report to Congress is mandated under Section 4(g) of the Exchange Act.

OIA highlighted the following:

  • Environmental, social and governance disclosure. OIA stated that investors would benefit from a "careful balance" of prescriptive and principles-based requirements.
  • Rule 10b5-1 ("Employment of manipulative and deceptive devices") plans. OIA will examine whether trading pursuant to these plans should be paused for a set "cooling off" period or if disclosure of plan details should be required by companies or their executives.
  • Capital-raising alternatives. OIA will study the current disclosure regime for direct listings and special purpose acquisition companies.
  • Equity market structure issues. OIA will further consider (i) shortening the settlement period from T+2 to one day or shorter, (ii) pilot programs for thinly-traded securities to better understand the effects of restricting unlisted trading privileges, and (iii) conflicts of interest created by exchange fees and rebates in connection with broker-dealer order routing behavior.
  • Cryptocurrency. OIA will monitor developments involving applications for exchange-traded funds with crypto asset-focused investment strategies.

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