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CSA publishes guidance for know-your-client, know-your-product and suitability obligations
January 9, 2014--The Canadian Securities Administrators (CSA) today published CSA Staff Notice 31-336 Guidance for Portfolio Managers, Exempt Market Dealers and Other Registrants on the Know-Your-Client, Know-Your-Product and Suitability Obligations (Notice).
Today's Notice is in response to a number of compliance oversight reviews where CSA staff concluded that additional guidance for registrants, such as Portfolio Managers (PMs), Exempt Market Dealers (EMDs), and other registrants who are not members of a self-regulatory organization (SRO) is required to enhance overall compliance with these important regulatory obligations.
view the CSA Staff Notice 31-336 Guidance for Portfolio Managers, Exempt Market Dealers and Other Registrants on the Know-Your-Client, Know-Your-Product and Suitability Obligations (Notice).
Source: osc.gov.on.ca
SEC Announces 2014 Examination Priorities
January 9, 2014--The Securities and Exchange Commission today announced its examination priorities for 2014, which cover a wide range of issues at financial institutions, including investment advisers and investment companies, broker-dealers, clearing agencies, exchanges and other self-regulatory organizations, hedge funds, private equity funds, and transfer agents.
"We are publishing these priorities to highlight areas that we perceive to have heightened risk," said Andrew J. Bowden, Director of the SEC's Office of Compliance Inspections and Examinations. "This document, along with our Risk Alerts and other public statements, help us to increase transparency, strengthen compliance, and inform the public and the financial services industry about key risks that we are monitoring and examining."
The examination priorities address market-wide issues and those specific to particular business models and organizations. The market-wide priorities include fraud detection and prevention, corporate governance and enterprise risk management, technology controls, issues posed by the convergence of broker-dealer and investment adviser businesses and by new rules and regulations, and retirement investments and rollovers.
view the SEC-Examination Priorities for 2014 BNY Mellon ADR Index Monthly Performance Update-December 2013 Finra Fines Stifel Financial in ETF Case view more ChinaAMC appointed sub-advisor to Market Vectors China A-Share ETF view more Emerging Global Advisors And The TCW Group Partner To Launch Emerging Market Investment-Grade Bond Exchange-Traded Funds
The partnership brings together EGA, an industry leader in emerging market ETFs through its EGShares funds, and TCW, a premier emerging market fixed income asset manager, to provide investors with better tools with which to target emerging market fixed income growth opportunities. The funds will be managed by Penelope D. Foley and David I. Robbins,Group Managing Directors of Emerging Markets Strategies at TCW. view more Minutes Of The Federal Open Market Committee, December 17,18, 2013 view the Minutes of the Federal Open Market Committee
December 17-18, 2013
State Street Teaming With MFS to Open Active Equity ETFs view more
BlackRock Agrees to End Wall Street Analysis Previews view more Senate to quiz US regulators on Wall St commodity bets
The hearing, the second called by Senator Sherrod Brown, an Ohio Democrat, comes as the Fed reconsiders exemptions given to banks since the early 2000s that allow them to engage in the previously prohibited trading of physical commodities. view more
Source: SEC.gov
January 9, 2014--The BNY Mellon ADR Index Monthly Performance-December 2013 Update has been published and is now available for review.
view updates
Source: BNY Mellon
Two Brokerage Units Sold Products That Were Inappropriate for the Investors
January 9, 2014--Two Stifel Financial Corp. brokerage units were ordered by the industry's self-regulator to pay more than $1 million in fines and restitution for selling leveraged and inverse exchange-traded funds that were unsuitable for the investors.
The Financial Industry Regulatory Authority Inc. fined Stifel, Nicolaus & Co. Inc. and Century Securities Associates Inc., both based in St. Louis, Mo., a combined $550,000. They also were ordered to pay about $475,000 in restitution to 65 customers who lost money on the ETFs, purchased between January 2009 and June 2013.
Source: Wall Street Journal
Physical A-share exposure provided by China's largest mutual fund management company
January 8, 2014--Van Eck Associates Corporation has entered into an agreement with China Asset Management (Hong Kong) Limited ("ChinaAMC"), through which ChinaAMC has begun serving as sub-advisor for the Market Vectors(R) ChinaAMC A-Share ETF, it was announced today.
ChinaAMC is a wholly-owned subsidiary of China Asset Management Co., Ltd., China's largest management company in terms of mutual fund assets under management, and it has received its Renminbi Qualified Foreign Institutional Investor ("RQFII") quota, which will allow PEK to have direct exposure to physical China A-shares, providing investors with enhanced access to the Chinese equity markets.
Source: Van Eck
January 8, 2014--– Emerging Global Advisors (EGA), the asset manager to the EGShares exchange-traded fund (ETF) offering, and The TCW Group (TCW), a global asset management firm,today announced their partnership to launch a suite of Emerging Market (EM) fixed income ETFs.
The EGShares TCW EM Short Term Investment Grade Bond ETF (Ticker: SEMF, the EGShares TCW EM Intermediate Term Investment Grade Bond ETF (Ticker: IEMF) and the EGShares TCW EM Long Term Investment Grade Bond ETF (Ticker: LEMF) are the industry's first suite of EM fixed income ETFs to provide duration-defined exposure to USD-denominated, investment grade emerging market sovereign and corporate bonds.All three funds are advised by EGA, sub-advised by TCW and track custom indices created and monitored by J.P. Morgan.
Source: TCW Group
January 8, 2014--The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee meeting held on December 17-18, 2013. A summary of economic projections made by Federal Reserve Board members and Reserve Bank presidents for the meeting is also included as an addendum to these minutes.
The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report. Summaries of economic projections are released on a quarterly schedule. The descriptions of economic and financial conditions contained in these minutes and in the Summary of Economic Projections are based solely on the information that was available to the Committee at the time of the meeting.
Source; FBR
January 8, 2014--State Street Corp. (STT), the second-biggest provider of exchange-traded funds, plans to introduce its first actively managed stock ETFs in partnership with MFS Investment Management.
The three funds, the SPDR MFS Systematic Core Equity ETF (SYE), Growth Equity ETF and Value Equity ETF (SYV), will open tomorrow on the New York Stock Exchange, according to a statement yesterday from NYSE Euronext.
Source: Bloomberg
January 8, 2014--BlackRock, the world's largest asset management company, has agreed to end its practice of surveying Wall Street analysts to glean clues about their views on companies before those opinions are publicly issued.
The decision was reached late Wednesday as part of a settlement with Eric T. Schneiderman, the New York attorney general. The settlement document filed in the case contended that BlackRock’s surveys "allowed it to obtain information from analysts that could reveal forthcoming revisions to their published views" on companies they followed. The firm will also pay $400,000 to cover costs of the investigation.
Source: The New York Times
Hearing on banks and commodities set for Jan. 15
Top officials from FERC, Fed and CFTC will appear
Alleged aluminum manipulation to be back in focus
January 8, 2014--A Senate panel will hold a hearing next week to question financial regulators over Wall Street's role in physical commodity markets, drawing fresh attention to a controversy over the possible risks posed by the involvement of the largest U.S. investment banks.
The Jan. 15 hearing by a subcommittee of the powerful Senate Banking Committee is to include testimony by top oversight officials with the Federal Energy Regulatory Commission and the Commodity Futures Trading Commission and an official from the Federal Reserve's banking supervision arm.
Source: Reuters
