Policy Patty Toolkit 

Making the world a little more compliant one toolkit at a time.


SEC Modernizes the Delivery of Fund Reports and Seeks Public Feedback on Improving Fund Disclosure

Posted on June 6, 2018 at 11:00 AM

The SEC voted to improve the experience of investors who invest in mutual funds, ETFs and other investment funds. In three related releases, the Commission:

• provided a new, optional “notice and access” method for delivering fund shareholder reports,

• invited investors and others to share their views on improving fund disclosure, and

• sought feedback on the fees that intermediaries charge for delivering fund reports.

The Commission&...

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SEC Proposes FAIR Act Rules to Promote Research Reports on Investment Funds

Posted on May 24, 2018 at 1:30 PM

The SEC proposed rules and amendments that would promote research on mutual funds, exchange‑traded funds, registered closed-end funds, business development companies, and similar covered investment funds. The proposal would reduce obstacles to providing research on investment funds by harmonizing the treatment of such research with research on other public entities. If adopted, the proposal would generally establish a safe harbor for a broker or dealer to publish or distribute research ...

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France to ban cellphones in school

Posted on December 17, 2017 at 3:05 PM

Earlier this month, France’s education minister announced that mobile phones will be banned from primary, junior, and middle schools. This new policy is an extension of the current one, which already bans cellphone use during class in France. But the new policy goes further in that starting in September 2018 students won’t be allowed to use them on breaks, at lunch, or between lessons either.

In the US, the policy on cellphone use in schools is left primarily to schools and ...

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Email Issues and Deficiencies - Regulatory Actions

Posted on December 14, 2017 at 9:25 AM

I thought this recent blog from Marianna Shafir in the SMARSH blog was a good read on the continuing issues for firms regarding inadequate electronic communication policies, supervision, and records. Marianna uses four recent FINRA actions and requirements to highlight this point. Consider:

• Recent Regulatory Actions

o A firm was censured and fined $175,000 for failing to maintain electronic brokerage records related to approximately 46 million market-making transactions in...

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SEC issues risk alert on common advertising deficiencies identified in OCIE exams of Investment Advisers

Posted on September 18, 2017 at 10:55 AM

The SEC issued a new Risk Alert (The Most Frequent Advertising Rule Compliance Issues Identified in OCIE Examinations of Investment Advisers) to highlight common errors made by advisers in their marketing and advertising materials. These issues were spotted as concerns regarding compliance with the SEC’s Advertising Rule (Rule 206(4)-1)). The rule provides that advertising can include a wide range of marketing and client communications, including not only advertisements, but web sites, ...

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Social Media Site Cannot Block Startup from Public Profile Data

Posted on August 15, 2017 at 8:20 AM

A U.S. federal judge has ruled that LinkedIn cannot prevent a startup from accessing public profile data. The judge granted hiQ Labs a preliminary injunction, and ordered LinkedIn to immediately remove any technology preventing hiQ from accessing public profiles. The company uses the LinkedIn data to build algorithms capable of predicting employee behaviors, such as when they might quit. Back in May, LinkedIn instructed hiQ Labs to stop scraping data from its service. In response, hiQ filed ...

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2017 Electronic Communications Compliance Survey - Smarsh

Posted on August 10, 2017 at 9:35 AM

Smarsh released its seventh annual Electronic Communications Compliance Survey (to access 2017 report see link below). The survey entails a 31-question survey involving 119 compliance professionals who provided input on current trends and insights on policies and practices on the usage, retention and supervision of electronic business communications. I reviewed this excellent survey and highlighted key and specific results summarized below.

The key takeaways from the survey:

- F...

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