Category Archives: Regulations

Corporate Disclosures of the Coronavirus (COVID-19) Pandemic

By | May 27, 2020

Courtesy of Victor Wang and Betty Xing Information plays a crucial role in well-functioning stock markets, and corporate managers often possess private information about their firms’ performance and prospects. The rapid evolution of the COVID-19 pandemic and the enormous uncertainty associated with it has led firms into uncharted territory. What information can corporate managers share… Read More »

Letter to SEC on Corporate Transparency and Accountability and the Coronavirus Pandemic

By | May 26, 2020

Courtesy of Andy Green, Tyler Gellasch, Erik Gerding, Lev Bagramian, Urska Velikonja, Rachel Curley, Renee Jones, and Divya Vijay The following letter was submitted by the authors on May 26, 2020, to the Securities and Exchange Commission (SEC) Chairman Jay Clayton and filed in response to selected rulemakings (listed in the appendix below). SEC proposed… Read More »

“Basel V” Should Target the “Green Swan”

By | May 21, 2020

Courtesy of Mete Feridun Recently, the Bank for International Settlements (BIS) coined the term “green swan” to refer to the tail risks posed by climate change to financial stability. Although inspired by Nassim Nicholas Taleb’s “black swan,” the moniker of unexpected risks, the BIS argues that the green swan is hardly similar to the black… Read More »

The Effect of Foreign Competition on Corporate Tax Avoidance

By | May 19, 2020

Courtesy of Nader Atawnah, Balasingham Balachandran, Huu Nhan Duong, Jeffrey Pittman, and Edward Podolski The US Federal government deficit totaled $984 billion in 2019, representing 4.7% of GDP. Aggressive tax evasion and avoidance strategies by corporations are one contributing factor to this shortfall. By some accounts, profit shifting and tax evasion strategies reduce the IRS’s… Read More »

Comments to the Climate-Related Market Risk Subcommittee under the Market Risk Advisory Committee (MRAC) of the Commodity Futures Trading Commission (CFTC)

By | May 13, 2020

Courtesy of Lawrence Baxter, Mercy B. DeMenno,  Lee Reiners, and Joe Smith The following letter was submitted by the Global Financial Markets Center on May 9, 2020, to the Commodity Futures Trading Commission (CFTC) in response to the CFTC’s request for public comment on topics and issues being addressed by the Climate-Related Market Risk Subcommittee… Read More »

Rolling Back Dodd-Frank: One Bite at a Time

By | March 11, 2020

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) ushered in the most substantial changes to the U.S. financial system since the Great Depression. The statute was 848 pages long and imposed an estimated 27,278 new restrictions—equal to 74 percent of the restrictions created by all other laws passed during the Obama administration combined!… Read More »

XY Planning Network, LLC v. SEC: Broker Conflicts of Interest, Regulation “Best Interest,” and Investors’ False Sense of Security

By | March 5, 2020

Courtesy of Micah Hauptman and Stephen Hall Introduction In June 2019, the Securities and Exchange Commission (“SEC”) finalized Regulation Best Interest (“Reg. BI”) on a 3-1 vote, with strong support from the broker-dealer industry and equally strong opposition from investor advocates. The SEC heralded the rule as a pragmatic and effective solution to the longstanding… Read More »

Measuring Regulatory Complexity

By | February 26, 2020

Courtesy of Jean-Edouard Colliard and Co-Pierre Georg Since the global financial crisis of 2007–08, regulators around the world have been busy overhauling global financial regulation. The culmination of these efforts, the Basel III accords on capital regulation and their national implementations, have the financial services industry up in arms. They argue that regulation has become… Read More »

The New EU Prudential Regime for Investment Firms and What It Means for Firms

By | February 24, 2020

Courtesy of Mete Feridun  Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official views and opinions of PwC.  The Official Journal of the European Union published the prudential framework for investment firms (Investment Firms Review – IFR) on 5 December 2019. Applying to all MiFID… Read More »

The Virtual Commodity Association and the Uphill Battle for Cryptocurrency Self-Regulation

By | February 20, 2020

Courtesy of Katarina Weessies In March of 2018, Cameron and Tyler Winklevoss proposed the Virtual Commodity Association (VCA), a self-regulatory organization, or SRO, meant to make the cryptocurrency industry more “safe and secure.” An SRO is “a nongovernmental organization that is statutorily empowered to regulate its members by adopting and enforcing rules of conduct.” The… Read More »