Saturday, October 16, 2021

US SEC delays enforcement actions of certain assets under new disclosure rule

WASHINGTON – The US Securities and Exchange Commission (SEC) said on Friday that it will delay the enforcement of certain assets from a new disclosure rule for off-exchange securities until January 3, 2022.

The new compliance date was to come into effect from Tuesday.

The agency’s no-action letter, which affects quotes published by broker-dealers for the purchase and sale of government bonds, begins September 28, 2021, the date of compliance with a new rule aimed at preventing fraud in US equity markets. does not alter or amend. the agency said.

The position “relates only to enforcement action and does not represent a legal conclusion regarding the applicability of statutory or regulatory provisions of securities laws,” the agency said.

Next week’s new measure aims at US ‘pink sheets’ in shakeup as securities regulator seals fraud on off-exchange issuers to promote investor disclosures to make accurate, up-to-date financial information publicly available wants to put These are often penny-stock companies that do not meet the listing standards of the major exchanges.

The requirements have created confusion in the bond market as bankers, trading platforms and investors now face intense compliance demands ahead of the unexpected month-end deadline.

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The Financial Times reported this week that the new rule could deter broker-dealers from doing business in the region and risk-taking for fear of attracting SEC enforcement action.

The Bond Trade Association, which includes the Bond Dealers of America and the Securities Industry and Financial Markets Association, wrote to regulators to say that the revised rules would have a “significant, detrimental effect” on the government and corporate bond markets, and in an apparent relief. Requested for, or more time to comply, the FT reported.

Friday’s letter from the SEC is a response to such fury by the industry. While compliance is still mandated by Tuesday’s deadline, top market watchdogs said delays in enforcement actions are meant to allow the necessary industry “operational and system changes” that could lead to rule compliance.

by Katanga Johnson

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This News Originally From – The Epoch Times

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