Federal Regulatory Agencies
News releases, reports, statements and associated documents from federal regulatory agencies ranging from the Securities Exchange Commission to the Commodities Futures Trading Commission
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SEC Staff Publishes New Investment Adviser Statistics Report
WASHINGTON, May 16 (TNSres) -- The Securities and Exchange Commission issued the following news release on May 15, 2024:
The staff of the Securities and Exchange Commission today published a new report of Investment Adviser Statistics, which is based on aggregated data filed by investment advisers on Form ADV. The new report, which will be updated on an annual basis, is designed to give the public a view into the investment advisory industry, with insights into areas such as business activities, client composition, and the types of funds advised. The report shows trends over time.
Investment
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WASHINGTON, May 16 (TNSres) -- The Securities and Exchange Commission issued the following news release on May 15, 2024:
The staff of the Securities and Exchange Commission today published a new report of Investment Adviser Statistics, which is based on aggregated data filed by investment advisers on Form ADV. The new report, which will be updated on an annual basis, is designed to give the public a view into the investment advisory industry, with insights into areas such as business activities, client composition, and the types of funds advised. The report shows trends over time.
InvestmentAdviser Statistics contains more than 50 separate tables of aggregated data. The public may download the statistics in a structured format, which provides a historical statistical series of information dating back to the year 2000. The report shows that, as of the end of last December, there were more than 15,000 registered investment advisers that reported approximately $128 trillion in regulatory assets under management.
"Providing accessible, usable, aggregated data to the public is a critical part of the SEC's role," said SEC Chair Gary Gensler. "This new report will give the public a clearer view into the investment advisory industry. Such SEC-published data help the public better understand how our economy and securities markets function."
"Form ADV data offers a uniquely comprehensive view of the asset management industry," said Tim Husson, head of the Division of Investment Management's Analytics Office. "The statistics in this report illustrate the phenomenal growth and changing nature of the advisory business and will help inform public policy in this space."
"The publication of this data will provide valuable information to the public," said SEC Chief Economist Jessica Wachter. "The report enhances transparency into an important segment of our capital markets."
The Division of Investment Management has primary responsibility for administering the Investment Company Act of 1940 and Investment Advisers Act of 1940, including oversight of investment companies, such as mutual funds, money market funds, and ETFs, and for investment advisers. The Division's Analytics Office provides the Division and the SEC with practical reviews and actionable analyses of the asset management industry.
The report is available on the SEC's website here (https://www.sec.gov/investment/analytics-office).
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Original text here: https://www.sec.gov/news/press-release/2024-57
FCC SETTLES INVESTIGATIONS INVOLVING NATIONAL SECURITY REVIEWS AND UNAUTHORIZED CONNECTIONS OF INTERNATIONAL UNDERSEA CABLES TO THE UNITED STATES
WASHINGTON, May 16 -- The Federal Communications Commission issued the following news release on May 14, 2024:
The FCC's Enforcement Bureau today resolved two investigations into the America Movil Submarine Cable System, which connects the United States to two additional cable landing stations located in Colombia and Costa Rica, respectively, without the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector's (commonly known as Team Telecom) review or the required FCC approval. In addition to admitting the violations, LATAM Telecommunications
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WASHINGTON, May 16 -- The Federal Communications Commission issued the following news release on May 14, 2024:
The FCC's Enforcement Bureau today resolved two investigations into the America Movil Submarine Cable System, which connects the United States to two additional cable landing stations located in Colombia and Costa Rica, respectively, without the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector's (commonly known as Team Telecom) review or the required FCC approval. In addition to admitting the violations, LATAM Telecommunicationsand Puerto Rico Telephone Company will each pay a $1 million civil penalty and enter into a compliance plan.
An undersea cable licensee's failure to obtain prior Commission authorization before connecting and operating new international subsea cable landing stations circumvents Team Telecom's ability to conduct a review for national security concerns as required by federal law and regulations.
"Undersea cables keep us globally connected and are essential part of the digital economy. But they can pose real security risks if the FCC and its national security partners aren't properly given the chance to review where new cables may be installed," said FCC Chairwoman Jessica Rosenworcel. "Across the board the agency has been focused on network security, and careful oversight of undersea cables is a critical part of this effort."
"As recently described in the Bulk Sensitive Personal Data Executive Order 14117, international submarine cables that connect the United States to other countries are a key piece of technology that facilitates the voluminous transfer and use of sensitive personal and U.S. government information," said FCC Enforcement Chief Loyaan A. Egal, who also serves as head of the FCC's Privacy and Data Protection Task Force. "We will also work closely with our national security partners and the Commission's Office of International Affairs to identify and address unauthorized and non-notified transactions that implicate FCC licenses and U.S. national security interests."
"Team Telecom is designed to review and address national security threats to our critical telecommunications infrastructure," said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. "When that process is bypassed, it puts the American people, their communications, and their data at risk. Today's enforcement action makes clear that the Department of Justice, as Chair of Team Telecom, will continue to work closely with the FCC to ensure that applicants and licensees play by the rules."
The FCC investigation found that construction began on a cable landing station in Isla San Andres, Colombia, in March 2020, which went into operation in September 2021, and a cable landing station in Puerto Limon, Costa Rica, in May 2021, which began operation in November 2022, with both connecting to the America Movil Submarine Cable System. Neither company sought FCC authorization until 2023, thus evading vital national security reviews and assessments, among other concerns, that the FCC, in collaboration with the Team Telecom Committee, considers when reviewing new undersea cable landing license applications, as well as requests to modify existing licenses.
Reflecting the increased emphasis on data security issues in the national security sphere, the financial penalties associated with today's settlements are significantly larger than prior enforcement actions for undersea cable rule violations. In addition to critical infrastructure voice and data services, undersea cables also facilitate emerging technologies that are key to the digital economy such as artificial intelligence, machine learning, and cloud computing. The Enforcement Bureau will continue to prioritize investigations that concern U.S. national security interests involving telecommunications and information and communications technology networks.
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Original text here: https://docs.fcc.gov/public/attachments/DOC-402552A1.pdf
FCC CHAIRWOMAN PROPOSES INTERNET ROUTING SECURITY REPORTING REQUIREMENTS
WASHINGTON, May 16 -- The Federal Communications Commission issued the following news release on May 15, 2024:
FCC Chairwoman Jessica Rosenworcel today proposed requiring the largest broadband providers to file confidential reports on Border Gateway Protocol (BGP) security so the FCC and its national security partners can for the first time collect more up- to-date information about this critical internet routing intersection. BGP is the technology used for routing information through the physical and digital infrastructure of the internet.
National security experts have raised concerns that,
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WASHINGTON, May 16 -- The Federal Communications Commission issued the following news release on May 15, 2024:
FCC Chairwoman Jessica Rosenworcel today proposed requiring the largest broadband providers to file confidential reports on Border Gateway Protocol (BGP) security so the FCC and its national security partners can for the first time collect more up- to-date information about this critical internet routing intersection. BGP is the technology used for routing information through the physical and digital infrastructure of the internet.
National security experts have raised concerns that,by accessing vulnerabilities in BGP, bad actors can disrupt critical services that rely on the internet and result in misdirection, interception, inspection, or manipulation of data. A bad network actor may deliberately falsify BGP reachability information to redirect traffic. Russian network operators have been suspected of exploiting BGP's vulnerability for hijacking in the past. "BGP hijacks" can expose Americans' personal information, enable theft, extortion, state-level espionage, and disrupt otherwise-secure transactions.
"It is vital that communication over the internet remains secure," said Chairwoman Rosenworcel. "Although there have been efforts to help mitigate BGP's security risks since its original design, more work needs to be done. With this proposal, we would require broadband providers to report to the FCC on their efforts to implement industry standards and best practices that address BGP security."
The proposal aims to increase the security of the information routed across the internet by proposing certain reporting obligations on broadband internet access service (BIAS) providers on their progress towards secure internet routing. The proposal looks to utilize the Resource Public Key Infrastructure (RPKI) as a critical component of BGP security. It proposes to require that all broadband providers develop plans for implementing BGP security measures, and that a select number of the largest broadband providers would file those plans with the Commission as well as file quarterly data reports.
The Notice of Proposed Rulemaking would, if adopted by a vote of the full Commission at its June Open Meeting, formally propose:
* BIAS providers develop BGP Routing Security Risk Management Plans (BGP Plans) that describe in detail their specific progress, and plans for, implementing BGP security measures that utilize the Resource Public Key Infrastructure.
* The nine largest service providers file their BGP Plans confidentially with the Commission as well as file publicly available quarterly data that would allow the Commission to measure progress in the implementation of RPKI-based security measures and assess the reasonableness of their BGP Plans.
* Seek comment on other measures related to implementing RPKI-based security.
Border Gateway Protocol is the global inter-domain routing protocol that is used to exchange reachability information amongst the various networks that comprise the internet. This technology is essential to the internet and has been referred to as the "glue" that enables modern connectivity. This essential technology, however, was designed decades ago and provides no intrinsic means by which to verify a "route origination" - that the internet address that you are requesting to access is in fact a valid address.
Today's proposal looks to use origin validation and Resource Public Key Infrastructure to increase BGP security. Origin validation verifies that a network is authorized to originate a route advertisement to a specific IP address. The RPKI allows validation of a route's origin by enabling cryptographically verifiable associations between specific IP address blocks, or autonomous system numbers (ASNs), and the "holders" of those internet number resources.
The FCC formally launched a proceeding on BGP with a Notice of Inquiry adopted in February 2022. Building on this record and the FCC Public Safety and Homeland Security Bureau's 2023 workshop featuring remarks from FCC Chairwoman Jessica Rosenworcel and CISA Director Jen Easterly, today's proposal seeks to further federal efforts to ensure BGP continues to efficiently serve our economic and communications needs while ensuring the security of U.S. networks
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Original text here: https://docs.fcc.gov/public/attachments/DOC-402579A1.pdf
SEC Seeks Candidates for Small Business Capital Formation Advisory Committee
WASHINGTON, May 15 -- The Securities and Exchange Commission issued the following news release:
The Securities and Exchange Commission is seeking candidates to fill a limited number of vacancies on the agency's Small Business Capital Formation Advisory Committee, which provides advice and recommendations to the Commission on rules, regulations, and policy matters relating to small businesses.
The committee was established by the SEC Small Business Advocate Act of 2016. Consistent with statutory requirements, committee members represent a diverse spectrum of leaders, investors, and advisors who
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WASHINGTON, May 15 -- The Securities and Exchange Commission issued the following news release:
The Securities and Exchange Commission is seeking candidates to fill a limited number of vacancies on the agency's Small Business Capital Formation Advisory Committee, which provides advice and recommendations to the Commission on rules, regulations, and policy matters relating to small businesses.
The committee was established by the SEC Small Business Advocate Act of 2016. Consistent with statutory requirements, committee members represent a diverse spectrum of leaders, investors, and advisors whowork with early-stage private companies and smaller public companies, including minority- and women-owned small businesses.
The committee advises and consults with the Commission on rules, regulations, and policies as they relate to:
* Capital raising by emerging, privately held small businesses and publicly traded companies with less than $250 million in public market capitalization;
* Trading in the securities of emerging companies and smaller public companies; and
* Public reporting and corporate governance requirements of emerging companies and smaller public companies.
"The SEC's decision-making benefits from a wide array of inputs, including perspectives of the Small Business Capital Formation Advisory Committee and its members," said SEC Chairman Gary Gensler. "I look forward to working with the committee to continue upholding the SEC's mandate to facilitate capital formation for companies of all sizes, while protecting investors across America."
Members of the public interested in serving on the committee should promptly email a letter of interest to smallbusiness@sec.gov with applicable information about their relevant experience. The deadline for submissions is June 14, 2024.
Relevant experience may include:
* Representing emerging companies engaging in private and limited securities offerings or considering an initial public offering (IPO), professional advisors of such companies (including attorneys, accountants, investment bankers, and financial advisors), and investors in such companies;
* Service as an officer or director of minority-owned small businesses or women-owned small businesses;
* Representing smaller public companies, the professional advisors of such companies (including attorneys, accountants, investment bankers, and financial advisors), and the pre-IPO and post-IPO investors in such companies; and
* Representing participants in the marketplace for the securities of emerging companies and smaller public companies, such as securities exchanges, alternative trading systems, analysts, information processors, and transfer agents.
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Original text here: https://www.sec.gov/news/press-release/2024-56
SEC Charges Hudson Valley Wealth Management Advisory Firm and Founder for Failing to Disclose Conflicts of Interest
WASHINGTON, May 15 -- The Securities and Exchange Commission issued the following news release on May 14, 2024:
The Securities and Exchange Commission today announced settled charges against New York-based registered investment adviser Hudson Valley Wealth Management Inc. and its founder, Christopher Conover, for breaching their fiduciary duties by failing to disclose conflicts of interest and making misleading statements to their clients. To settle the charges, Hudson Valley agreed to pay a civil penalty of $200,000, and Conover agreed to pay more than $600,000 in disgorgement and prejudgment
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WASHINGTON, May 15 -- The Securities and Exchange Commission issued the following news release on May 14, 2024:
The Securities and Exchange Commission today announced settled charges against New York-based registered investment adviser Hudson Valley Wealth Management Inc. and its founder, Christopher Conover, for breaching their fiduciary duties by failing to disclose conflicts of interest and making misleading statements to their clients. To settle the charges, Hudson Valley agreed to pay a civil penalty of $200,000, and Conover agreed to pay more than $600,000 in disgorgement and prejudgmentinterest and a $150,000 civil penalty.
According to the SEC's order, between September 2017 and October 2021, Hudson Valley and Conover advised a private investment fund and their individual clients to make investments in films produced by a particular film production company. At the same time, Conover, through his affiliated company, received approximately $530,000 from the production company in exchange for the money that the investment fund and the individual clients invested in these same films. Hudson Valley and Conover initially failed to disclose these payments to the clients and then later misrepresented that Conover earned this compensation for work as an executive producer on these films.
In addition, the SEC's order finds that, in May 2021, Hudson Valley and Conover satisfied a redemption request from one fund investor but did not satisfy several redemption requests submitted at the same time by other fund investors who were Hudson Valley advisory clients. By preferencing one investor's redemption request over other client redemption requests, Hudson Valley and Conover violated their fiduciary duties to the other clients.
"Fully and fairly disclosing conflicts of interest are at the heart of an investment adviser's fiduciary duty," said Andrew Dean, Co-Chief of the Enforcement Division's Asset Management Unit. "Investors must have confidence that their investment advisers are treating them fairly and acting in their best interest when investing their funds."
The SEC's order finds that Hudson Valley and Conover violated the antifraud provisions of Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. In addition to disgorgement and penalties, Hudson Valley and Conover agreed to cease-and-desist orders and censures.
The SEC's investigation was conducted by Brian Kudon of the Division of Enforcement's Asset Management Unit and David Zetlin-Jones and Hermann Vargas of the New York Regional Office, with assistance from Kerri Palen and James Addison, also of the New York Regional Office. The investigation was supervised by Lee A. Greenwood, and Mr. Dean of the Asset Management Unit, and Sandeep Satwalekar and Antonia Apps of the New York Regional Office.
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Original text here: https://www.sec.gov/news/press-release/2024-55
CFPB Will Distribute More Than $384 Million to Consumers Deceived by Think Finance
WASHINGTON, May 15 -- The Consumer Financial Protection Bureau issued the following news on May 14, 2024:
The CFPB is compensating consumers who it alleged were deceived by Think Finance, LLC, into repaying loans they did not legally owe. Think Finance, LLC, made false demands and illegally took money from consumers' bank accounts for debts that were not owed under laws in 17 states, according to the CFPB's lawsuit.
Many states have laws saying that loans and other types of credit are invalid if the interest rates are higher than what the state allows, or if a lender is not properly licensed
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WASHINGTON, May 15 -- The Consumer Financial Protection Bureau issued the following news on May 14, 2024:
The CFPB is compensating consumers who it alleged were deceived by Think Finance, LLC, into repaying loans they did not legally owe. Think Finance, LLC, made false demands and illegally took money from consumers' bank accounts for debts that were not owed under laws in 17 states, according to the CFPB's lawsuit.
Many states have laws saying that loans and other types of credit are invalid if the interest rates are higher than what the state allows, or if a lender is not properly licensedto conduct business in the state. The CFPB alleged that Think Finance demanded payments from consumers even when consumers didn't owe those payments because the interest rates the lenders charged were high enough to violate these laws in some states where they did business, or because lenders did not have proper licenses to lend or collect in certain states. In addition, the CFPB alleged that Think Finance made electronic withdrawals from consumers' bank accounts or called or sent letters to consumers demanding payment for debts that the consumers were under no legal obligation to pay.
If you are one of the 191,672 consumers who took out a loan with Think Finance or a related entity and you made payments that you did not actually owe, you will be sent payments on May 14, 2024, through Epiq Systems. You can learn more about the distribution at: cfpb.gov/payments/thinkfinance. If you have questions about receiving a refund, email info@cfpb-thinkfinance.org or call 1 (888) 557-1865.
The total distribution amount is $384,009,580.74 and the money will come from the CFPB's victims relief fund.
Action against Think Finance, LLC
In November 2017, the CFPB filed a lawsuit against Think Finance, LLC, and six of its subsidiaries for engaging in unfair, deceptive, and abusive acts and practices that violated the Consumer Financial Protection Act. Think Finance, working with other companies, offered and serviced lines of credit and installment loans over the internet to consumers throughout the United States. The CFPB's lawsuit alleged that Think Finance, or one of its subsidiaries, illegally collected loans that were completely or partially void under the law in Arizona, Arkansas, Colorado, Connecticut, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, and South Dakota.
Learn more about the case. (https://www.consumerfinance.gov/enforcement/actions/think-finance-llc-formerly-known-think-finance-inc/)
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Original text here: https://www.consumerfinance.gov/about-us/blog/the-cfpb-will-distribute-more-than-384-million-to-consumers-deceived-by-think-finance-llc/
Boltless Steel Shelving Units Prepackaged for Sale From Malaysia, Taiwan, Thailand, Vietnam Injure U.S. Industry, Says USITC
WASHINGTON, May 15 -- The U.S. International Trade Commission issued the following news release on May 14, 2024:
The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of boltless steel shelving units prepackaged for sale from Malaysia, Taiwan, Thailand, and Vietnam that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein, Jason E. Kearns, and Amy A. Karpel voted in the affirmative.
As
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WASHINGTON, May 15 -- The U.S. International Trade Commission issued the following news release on May 14, 2024:
The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of boltless steel shelving units prepackaged for sale from Malaysia, Taiwan, Thailand, and Vietnam that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein, Jason E. Kearns, and Amy A. Karpel voted in the affirmative.
Asa result of the Commission's affirmative determinations, Commerce will issue antidumping duty orders on imports of this product from Malaysia, Taiwan, Thailand, and Vietnam.
The Commission's public report Boltless Steel Shelving Units Prepackaged for Sale from Malaysia, Taiwan, Thailand, and Vietnam (Inv. Nos. 731-TA-1608-1611 (Final), USITC Publication 5508, June 2024) will contain the views of the Commission and information developed during the investigations.
The report will be available by June 11, 2024; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.
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UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Boltless Steel Shelving Units Prepackaged for Sale from Malaysia, Taiwan, Thailand, and Vietnam
Investigation Nos. 731-TA-1608-1611 (Final)
Product Description: Boltless steel shelving units that are prepackaged for sale are used for storage in homes, basements, garages, offices, and commercial and industrial operations. "Boltless" refers to a system of assembly that uses rivets or other protrusions on horizontal support members that fit into slots in the vertical posts to form the frame for the shelving unit. By avoiding the need for nuts and bolts, screws, or tubular collars on the posts, the boltless system does not require tools for assembly. The prepackaged unit, containing all the appropriate parts, is sold in several common sizes, either with or without decking (i.e., shelves). The term "prepackaged for sale" means that, at a minimum, the steel vertical supports (i.e., uprights and posts) and steel horizontal supports (i.e., beams, braces) necessary to assemble a completed shelving unit (with or without decks) are packaged together for ultimate purchase by the end-user.
Status of Proceedings:
1. Type of investigations: Final antidumping duty investigations.
2. Petitioner: Edsal Manufacturing Co. Inc., Chicago, Illinois.
3. USITC Institution Date: Tuesday, April 25, 2023.
4. USITC Hearing Date: Thursday, April 11, 2024.
5. USITC Vote Date: Tuesday, May 14, 2024.
6. USITC Notification to Commerce Date: Monday, June 3, 2024.
U.S. Industry in 2022:
1. Number of U.S. producers: 2.
2. Location of producers' plants: California, Illinois, Indiana, Pennsylvania, and Tennessee.
3. Production and related workers: 1
4. U.S. producers' U.S. shipments: 1
5. Apparent U.S. consumption: 1
6. Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2022:
1. Subject imports: $135 million.
2. Nonsubject imports: 1
3. Leading import sources: Malaysia, Taiwan, Thailand, and Vietnam.
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Footnote:
1/ Withheld to avoid disclosure of business proprietary information.
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Original text here: https://www.usitc.gov/press_room/news_release/2024/er0514_65165.htm
