The Stock Exchange of Thailand (SET) removes Energy Absolute pcl (EA) from the current SET ESG Ratings list, effective July 15, 2024. This decision follows the Securities and Exchange Commission (SEC)’s allegations against EA's directors and executives to the Department of Special Investigation (DSI) and subsequent referral to the Anti-Money Laundering Office (AMLO) in connection with fraud cases. The SEC has filed a criminal complaint against Somphote Ahunai and Amorn Sapthaweekul, EA’s directors and executives, along with Phornlert Techarattanopas, with the DSI for allegedly engaging in fraudulent activities to seek undue benefits for themselves and/or others. The case has also been forwarded to the AMLO. Consequently, SET, through the Sustainable Investment (SET ESG Ratings) Committee, has decided to remove EA from the current SET ESG Ratings list. The decision was made because the company no longer meets the SET ESG Ratings qualification criteria, which stipulate that “either the company or its directors or executives must not be accused or found guilty by authorities or relevant agencies in matters related to corporate governance, social impact, or environmental impact.”

General Principle Applicable to Delistings  The SGX Listing Rules provides for certain requirements to safeguard the interests of shareholders in the event of a delisting of an issuer. Under the SGX Listing Rules, Singapore Exchange Regulation (“SGX RegCo”) may agree to an application by an issuer to delist if:    the issuer convenes a general meeting to obtain shareholders’ approval for the delisting, and the resolution has been approved by at least 75% of the total number of issued shares held by independent shareholders[1] present and voting (“75% Independent Approval”); and the independent financial adviser (“IFA”) has opined that the exit offer[2] offered to shareholders is fair and reasonable (“Fair & Reasonable Offer”),    collectively, the “Voluntary Delisting Requirements”. An offeror seeking to privatise an issuer may also elect to utilise other mechanisms, such as a general offer under the Singapore Code on Take-overs and Mergers (“General Offer”) (“Take-over Code”). Where an offeror has made a General Offer with the intention to privatise the issuer, unless it is exercising its right of compulsory acquisition, SGX RegCo will require that the Voluntary Delisting Requirements have, in principle, be adhered to before it will allow the issuer to be delisted.  In this regard, as stated in an earlier Regulator’s Column: Privatisations through General Offers, SGX RegCo will consider that the requirement for 75% Independent Approval is satisfied where, as at the close of the General Offer, the offeror has received acceptances from independent shareholders that represent at least 75% of the total number of issued shares held by independent shareholders (“75% Independent Acceptances”). The requirement for a Fair & Reasonable Offer will be satisfied if the IFA has opined that the General Offer is fair and reasonable.  The requirements for 75% Independent Acceptances and a fair and reasonable General Offer are conjunctive requirements for shareholder protection. A General Offer that sets a fair and reasonable price may nonetheless not receive the requisite shareholder acceptance; conversely, even if the General Offer finds favour with a substantial majority of shareholders, a fair and reasonable price is still necessary to take out the remainder of the shareholders who do not accept the General Offer. Potential Scenarios When General Offers Lead to Loss of Public Float The listing status of an issuer is defined by the tradability of its shares. When an offeror seeks to privatise an issuer, it seeks to remove its listing status – the result of which is that shareholders will no longer be able to trade the shares on the exchange. Under the SGX Listing Rules, to ensure an orderly market, issuers must maintain a free float where at least 10% of the shares are held in public hands (“public float”). The purpose of this requirement is to provide an orderly secondary market in the securities during trading and to prevent a situation where the shares can be manipulated or cornered.  SGX RegCo notes queries by shareholders and media commentary in respect of the applicability of the Voluntary Delisting Requirements to recent General Offers, particularly where the issuer has lost its public float pursuant to the General Offer. Should the issuer lose its public float pursuant to the General Offer, SGX RegCo may suspend the trading of the issuer’s securities as at close of the General Offer. Thereafter, the scenarios that may occur will differ depending on whether the IFA has opined that the General Offer is fair and reasonable and whether the offeror has received 75% Independent Acceptances. SGX RegCo wishes to highlight that, where any of the Voluntary Delisting Requirements have not, in principle, been satisfied, the offeror may also explore other options for privatisation, for example, an exit offer that complies with the SGX Listing Rules. However, it should be noted that, under the Take-over Code, the offeror may not make another offer on terms better than those made available under the previous General Offer until six months from the closure of the previous General Offer Potential scenarios where the issuer has lost its public float pursuant to a General Offer  SGX RegCo will not permit trading in an issuer’s securities to be suspended for a prolonged period. Should the issuer (and the controlling shareholder, where applicable) fail to comply with the requirements in the Listing Rules, including the requirement to restore free float, SGX RegCo may utilise the range of enforcement powers available to it under the Listing Rules.    Tan Boon Gin Chief Executive Officer SGX RegCo [1] Excluding the shares held by the offeror and parties acting in concert with it. [2] The exit offer must include a cash alternative as the default alternative.

A total turnover of 2.765 billion shares worth N85.230 billion in 40,796 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 2.259 billion shares valued at N31.166 billion that exchanged hands last week in 42,851 deals. Click here for full details.

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Nasdaq (Nasdaq: NDAQ) today announced that Super Micro Computer Inc. (Nasdaq: SMCI), will become a component of the Nasdaq-100 Index® (Nasdaq: NDX®) and the Nasdaq-100 Equal Weighted™ Index (Nasdaq: NDXE™) prior to market open on Monday, July 22, 2024. Super Micro Computer Inc. will replace Walgreens Boots Alliance Inc. (Nasdaq: WBA) in the Nasdaq-100 Index® and the Nasdaq-100 Equal Weighted Index. Walgreens Boots Alliance Inc. will also be removed from the Nasdaq-100 Ex-Tech Sector™ Index (Nasdaq: NDXX™), the Nasdaq-100 ESG™ Index (Nasdaq: NDXESG™), and the Nasdaq-100 Sustainable ESG Select™ Index (Nasdaq: NDXSES™) on the same date. Super Micro Computer Inc. will be considered for inclusion in the Nasdaq-100 Tech Sector™ Index (Nasdaq: NDXT™), the Nasdaq-100 Technology Sector Market-Cap Weighted™ Index (NDXTMC™), and the Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted™ Index (NDXT10™) at the next quarterly rebalancing. For more information about the company, go to https://www.supermicro.com/en/.

The Commodity Futures Trading Commission today announced the Division of Market Oversight and the Division of Clearing and Risk have taken a no-action position regarding swap data reporting and recordkeeping regulations in response to a request from ForecastEx LLC, a designated contract market and derivatives clearing organization.   The divisions will not recommend the Commission initiate an enforcement action against ForecastEx or its participants for certain swap-related recordkeeping requirements and for failure to report data associated with binary option transactions executed on or subject to the rules of ForecastEx to swap data repositories.   The no-action letter applies only in narrow circumstances, and is comparable to no-action letters issued for other similarly-situated designated contract markets and derivatives clearing organizations. RELATED LINKS CFTC Staff Letter No. 24-09

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs ecosystem, reports that assets invested the ETFs industry in the United States reached a new record high of US$9.18 trillion at the end of June.  During June the ETFs industry in the United States gathered net inflows of US$82.84 billion, bringing year-to-date net inflows to US$440.41 billion, according to ETFGI's June 2024 US ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.) Highlights Assets invested in the ETFs industry in the United States reached a new record high of US$9.18 trillion at the end of June beating the previous record of $9.00 Tn at the end of May 2024. Assets have increased 13.1% YTD in 2024, going from $8.11 Tn at end of 2023 to $9.18 Tn. Net inflows of $82.24 Bn gathered during June 2024. YTD net inflows of $440.41 Bn are the second highest on record, the highest recorded YTD net inflows were $472.20 Bn in 2021 and the third highest YTD net inflows were $307.50 Bn in 2022. 26th month of consecutive net inflows.   “The S&P 500 index increased 3.59% in June and is up 15.29% YTD in 2024. The developed markets excluding the US index decreased by 1.40% in June while it is up 4.60% YTD in 2024. France (down 7.88%) and Portugal (down 6.39%) saw the largest decreases amongst the developed markets in June. The emerging markets index increased by 2.97% during June and is up 8.09% YTD in 2024. Taiwan (up 10.09%) and South Africa (up 9.91%) saw the largest increases amongst emerging markets in June,” according to Deborah Fuhr, managing partner, founder, and owner of ETFGI. Asset Growth in the ETFs industry in the United States as of the end of June The ETFs industry in the United States had 3,586 products, assets of $9.18 Tn, from 332 providers listed on 3 exchanges at the end of June. During June, the ETFs industry gathered net inflows of $82.24 Bn. Equity ETFs gathered net inflows of $42.99 Bn during June, bringing YTD net inflows to $203.18 Bn, much higher than the $83.50 Bn in YTD net inflows in 2023. Fixed income ETFs reported net inflows of $17.20 Bn during June, bringing YTD net inflows in 2024 to $75.22 Bn, lower than the $89.78 Bn in net inflows YTD 2023. Commodities ETFs reported net outflows of $18.85 Mn during June, bringing YTD net outflows to $5.19 Bn, greater than the $975.43 Mn in net outflows YTD in 2023. Active ETFs attracted net inflows of $23.97 Bn during the month, gathering YTD net inflows of $132.68 Bn, much higher than the $52.59 Bn in YTD net inflows in 2023. Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered $50.87 Bn during June. iShares Core S&P 500 ETF (IVV US) gathered $13.56 Bn, the largest individual net inflow.Top 20 ETFs by net new assets June 2024: US Name Ticker Assets($ Mn) Jun-24 NNA($ Mn) YTD-24 NNA($ Mn)Jun-24 iShares Core S&P 500 ETF IVV US     484,879.09             30,460.37         13,555.23 iShares 20+ Year Treasury Bond ETF TLT US       53,173.94              5,253.86           4,832.69 Invesco QQQ Trust QQQ US     288,022.09             17,248.79           4,287.82 iShares S&P 500 Growth ETF IVW US       52,740.04              7,015.63           3,918.80 iShares MSCI EAFE Growth ETF EFG US       14,631.77              3,321.63           2,732.37 iShares iBoxx $ Investment Grade Corporate Bond ETF LQD US       30,837.82                   60.14           2,541.95 iShares Core MSCI EAFE ETF IEFA US     116,296.35              6,446.42           1,859.23 Invesco MSCI Global Climate 500 ETF KLMT US        1,618.82              1,621.77           1,621.77 Vanguard Total Stock Market ETF VTI US     404,463.49             14,401.21           1,620.38 GraniteShares 2x Long NVDA Daily ETF NVDL US        4,723.33              2,485.64           1,610.77 Vanguard FTSE Developed Markets ETF VEA US     132,172.15              6,199.78           1,500.47 SPDR Portfolio S&P 500 ETF SPLG US       39,710.52              9,545.13           1,384.42 Blackrock US Equity Factor Rotation ETF DYNF US        9,707.26              8,844.46           1,308.13 Global X Russell 2000 ETF RSSL US        1,301.60              1,291.26           1,291.26 Vanguard Russell 1000 Growth VONG US       22,043.65              1,513.69           1,235.63 iShares Core U.S. Aggregate Bond ETF AGG US     109,743.82             10,424.38           1,186.83 Invesco Nasdaq 100 ETF QQQM US       28,974.12              6,686.29           1,170.65 iShares Russell Top 200 Growth ETF IWY US       11,980.36              1,502.08           1,111.04 iShares Bitcoin Trust IBIT US       18,516.89             17,737.74           1,073.68 Vanguard Total International Stock Index Fund ETF VXUS US       71,969.88              6,170.69           1,031.66       The top 10 ETPs by net assets collectively gathered $1.01 Bn during June. iShares Silver Trust (SLV US) gathered $701.80 Mn, the largest individual net inflow. Top 10 ETPs by net new assets June 2024: US Name Ticker Assets($ Mn)Jun-24 NNA($ Mn)YTD-24 NNA($ Mn)Jun-24 iShares Silver Trust SLV US       12,842.97                   51.85              701.80 ProShares Ultra Silver AGQ US           570.85                   32.16               82.80 SPDR Gold MiniShares Trust GLDM US        7,395.21                 188.74               60.14 iPath Series B S&P 500 VIX Short-Term Futures ETN VXX US           295.77                 113.42               37.30 United States Gasoline Fund LP UGA US           104.60                     8.97               35.19 ProShares Ultra VIX Short-Term Futures UVXY US           232.15                     2.90               19.47 FPA Global Equity ETF FPAG US           133.98                 159.32               19.22 Van Eck Merk Gold Trust OUNZ US           961.90                   87.48               18.13 Aberdeen Standard Physical Silver Shares SIVR US        1,336.65                   28.14               16.91 iShares S&P GSCI Commodity-Indexed Trust GSG US        1,098.56                   33.56               16.43  Investors have tended to invest in Equity ETFs/ETPs during June.

The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has updated the following Questions and Answers: Alternative Investment Fund Managers Directive (AIFMD) Initial capital and additional own funds (2227) Notification upon establishment of a branch (711) Markets in Crypto-Assets Regulation (MiCA) Treatment of staking services in MiCA (2067) Grandfathering clause and applicable AML laws (2068) Interaction between Article 60 notifications and the CASP transitional phase (2069) Simplified authorisation procedures (2070) Crypto-asset transfers as component of another crypto-asset service or as a separate crypto-asset transfer service (2071) Entities not authorised as CASPs by the end of the transition period (2220) Entities who have not applied for, or whose application for authorisation as CASPs has been refused by the end of the transition period (2221) Markets in Financial Instruments Directive II (MiFID II) Interpretation of "emission allowances" under C(4) (847) Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Derogation for newly authorized UCITS (601) ▸ Questions and Answers section

The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today published a consultation paper on Guidelines under Markets in Crypto-assets Regulation (MiCA), establishing templates for explanations and legal opinions regarding the classification of crypto-assets along with a standardised test to foster a common approach to classification.   To support market participants and supervisors in adopting a convergent approach to the classification of crypto-assets, the Guidelines propose a standardised test, as well as templates for explanations and legal opinions that provide descriptions of the regulatory classification of crypto-assets in the following cases: Asset-referenced tokens (ARTs): The white paper for the issuance of ARTs, which contains comprehensive information about the crypto asset, must be accompanied by a legal opinion that explains the classification of the crypto asset – in particular, the fact it is not an EMT nor a crypto-asset that could be considered excluded from the scope of MiCA Crypto-assets that are not ARTs or EMTs under MiCA: The white paper for the crypto-asset must be accompanied by an explanation of the classification of the crypto asset – in particular, the fact it is not an EMT, ART or crypto-asset excluded from the scope of MiCA. Next Steps Comments to the consultation paper can be sent by clicking on the "send your comments" button on the consultation page. The deadline for the submission of comments is 12 October 2024.  The ESAs will hold a virtual public hearing on the consultation paper on Monday, 23 September 2024 from 10:00 to 12:00 CEST and invite interested stakeholders to register using this link by 19 September 2024 at 16:00 CEST. The dial-in details will be communicated in due course to those who have registered for the meeting. All contributions received will be published following the end of the consultation, unless requested otherwise. Background MiCA establishes regimes for regulating the issuance, offering to the public, and admission to trading of electronic money tokens (EMTs), asset-referenced tokens (ARTs), and other crypto-assets. The Regulation also establishes a framework for crypto-asset service provision and a joint mandate for the ESAs to develop the guidelines for application. These draft Guidelines are the only joint-ESA policy mandate under MiCA. Respond Related Documents Download All FilesDownload Selected Files DateReferenceTitleDownloadSelect 12/07/2024 ESA 2024 12 Consultation Paper on the Guidelines on templates for explanations and opinions, and the standardised test for the classification of crypto-assets  

This notice provides an update to members and other interested parties about LME Week 2024, which this year begins on Monday 30 September 2024. Download Notice

Trading Technologies International, Inc. (TT), a global capital markets technology platform provider, announced today that it has won two Waters Rankings 2024 awards including Best Execution Management System (EMS) Provider and a second annual win as Best Algorithmic Trading Provider. Voted on by thousands of end users across the buy side and sell side, the Waters Rankings reflect "best-in-class" service providers across 35 categories, recognizing initiatives, innovation and achievements of the industry's technology and data providers. TT Chief Operating Officer Justin Llewellyn-Jones said: "It's a high honor, indeed, to earn the votes of the sell-side and buy-side market participants who have tried and tested a range of EMS and algo trading solutions across asset classes and concluded our TT platform stands out above some of the most recognizable names in the industry. We continue to expand on the strong foundation of sophisticated tools we're able to offer clients who operate across asset classes and geographies, as we remain ever committed to meeting the highest standards they know they can expect from TT." Last week, TT won the 2024 European Markets Choice Award for Best Listed Derivatives Execution/Order Management System (E/OMS) from Markets Media. The recognition followed recent wins for Best Algo Trading Solution in the WatersTechnology Asia Awards 2024 and Best Listed Derivatives Trading Solution in both the TradingTech Insight USA Awards and TradingTech Insight Europe Awards. Last year, the TT platform won a range of additional awards, including Derivatives Trading System of the Year at both the FOW Asia Capital Markets Awards and the FOW International Awards. TT, which handled 2.2 billion transactions in 2023, offers connectivity to a growing array of more than 100 global exchanges and venues across multiple asset classes, along with significant new functionality added through innovations, strategic partnerships and acquisitions. As part of its algorithmic trading offering, the firm recently introduced TT Splicer, a new TT Premium Order Type execution algo that provides industry-first functionality for synthetic multi-leg spread trading and the ability to minimize slippage and optimize trade execution. With a comprehensive suite of advanced execution algorithms, algorithmic design and deployment tools, Autospreader® and APIs, TT provides a broad range of automated trading capabilities in listed derivatives, equities, fixed income and foreign exchange (FX).

Federal bank regulatory agencies today released the 2024 list of distressed or underserved nonmetropolitan middle-income geographies where certain bank activities are eligible for Community Reinvestment Act (CRA) credit. Under the CRA, the agencies assess a bank's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operations. The list released by the agencies includes distressed or underserved nonmetropolitan middle-income geographies where revitalization or stabilization activities are eligible to receive CRA consideration. The designations reflect local economic conditions, including unemployment, poverty, and population changes. Previous years' lists and criteria for designating these areas are available here. Revitalization or stabilization activities in these geographies are eligible to receive CRA consideration under the community development definition for 12 months after publication of the current list. As with past lists, the agencies apply a one-year lag period for geographies that were included in 2023 but are no longer designated as distressed or underserved in the current list. 2024 List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies (PDF) Source Information and Methodology (PDF)

The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee today released the agenda for its meeting on Tuesday, July 30, 2024, which will include an exploration of recent changes to the U.S. Small Business Administration’s (SBA) Small Business Investment Company (SBIC) program. Members of the public can watch the live meeting via webcast on www.sec.gov. The Committee, which provides advice and recommendations to the Commission on rules, regulations, and policy matters relating to small businesses, will start the meeting by hearing Committee member observations on the state of small business capital raising. The Committee will also discuss recent changes to the SBIC program designed to increase access and diversify funding for small businesses, start-ups, and fund managers. SBICs are privately-owned and operated investment funds that make investments in U.S. small businesses and are licensed by the SBA. SBICs may obtain access to SBA-guaranteed loans to match privately raised capital, which increases the amount of capital these funds can invest in American small businesses. To facilitate the discussion, members will hear from an SBIC fund and a practitioner who will, among other things: provide an overview of the SBIC program and recent changes, including the introduction of a new type of SBA-guaranteed loan to private funds; address the regulatory framework governing SBICs; and share their views on successes and challenges to date. The discussion will commence with remarks by Committee member Bailey DeVries, who leads the SBIC program in her role as the SBA’s Associate Administrator and Head of Office of Investment and Innovation. The full agenda, meeting materials, and information on how to watch the meeting are available on the Committee webpage. RESOURCES Agenda

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Nigerian Exchange Group (NGX Group) has unveiled NGX Invest, a groundbreaking digital platform designed to streamline Public Offerings and Rights Issues in the Nigerian capital market. The platform, which has received approval from the Securities and Exchange Commission (SEC), is now live, promising an efficient, convenient, and seamless experience for managing primary market transactions. NGX Invest represents a significant leap forward in improving stakeholder experience within Nigeria's capital market. Building on the success of the country's first digital public offering in 2021 - which attracted over 150,000 new retail investors, 75% of whom were female and 85% under the age of 40 - NGX Invest enhances transparency and accessibility in primary market transactions. The launch of NGX Invest comes at a crucial time, coinciding with the Central Bank of Nigeria's (CBN) Banking Recapitalisation directive, which has prompted numerous offers for subscription and rights announcements by Nigerian banks. Both the CBN and SEC have provided robust regulatory support for this initiative. Investors can now access the platform at  https://invest.ngxgroup.com. Access Holdings Plc, FCMB Group and Fidelity Bank Plc are already utilizing the NGX Invest APIs to distribute their offerings to retail investors. More banks are in the process of onboarding to leverage this platform. Dr. Emomotimi Agama, Director-General of the Securities and Exchange Commission, commended the initiative, stating, "The e-Offering Platform aligns perfectly with our objective of futureproofing the Nigerian capital market. By digitalising and automating financial intermediation processes, we are fostering a more efficient, transparent, and inclusive capital market. At the Commission, our focus is on creating an enabling regulatory environment that promotes innovation without compromising compliance and investor protection. I commend NGX Group for its strategic investment in advancing our capital markets”. Alhaji (Dr) Umaru Kwairanga, Group Chairman of NGX Group, commended the regulators, stating, "The supportive regulatory environment has provided a solid foundation that enabled the swift delivery of the platform. This reflects our mutual commitment to market development and will undoubtedly contribute to boosting the participation of retail investors in the capital market.  As we strive for the market to play a larger role in Nigeria’s economic development, the integration of technology, strong partnerships, and collaboration, alongside a positive policy environment, will be essential". Temi Popoola, Group Managing Director/Chief Executive Officer of Nigerian Exchange Group (NGX Group), expressed enthusiasm for the new platform noting its significance in NGX Group’s digital transformation journey and ability to enhance market access and foster economic growth. “We sincerely appreciate SEC and CBN for their strong support and leadership. Our intermediaries and partners, including the Central Securities Clearing System (CSCS), have been instrumental in achieving this success. This platform demonstrates our commitment to innovation and strengthening Nigeria's capital markets, particularly as we support the banking sector's recapitalisation efforts”. Popoola emphasised that NGX Invest is designed to significantly enhance the efficiency of public offering subscriptions and rights issue processes, streamlining operational workflows to better support issuers' capital-raising efforts. Jude Chiemeka, CEO of NGX, underscored the platform's transformative potential: "NGX Invest addresses the demand for a more efficient and transparent process in managing public offers and rights issues. It will expedite reconciliation and allotment processes, reduce unclaimed dividends, and boost investor confidence. All stakeholders - including investors, registrars, issuing houses, brokers, banks, and regulators - stand to benefit significantly from this innovation."

The Commodity Futures Trading Commission and the Department of Justice’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team (NCET) announced today they convened the first Fraud Disruption Conference to work on efforts to combat a type of fraud commonly known as “pig butchering.” It is estimated that Americans are scammed out of billions per year, making this a top law enforcement priority. This is the first of a series of Fraud Disruption conferences the CFTC will host with these and other partners to discuss various financial frauds to explore new avenues to combat or disrupt the scams. “It is devastating to hear countless stories of everyday Americans being targeted and defrauded by global criminal organizations,” said Chairman Behnam. “It has been a longstanding priority of mine to reenergize and grow our customer protection initiatives to combat retail fraud and protect the most vulnerable among us. I thank our CFTC staff for their dedication, and our longstanding partners at the Department of Justice and all others involved. By working together, we can tackle this problem.” “More than 300 federal regulators and law enforcement officials from more than 15 federal agencies (listed below) joined the CFTC today to develop measurable strategies to fight this scam that has defrauded Americans of their entire life savings,” said Office of Customer Education and Outreach (OCEO) Director Melanie Devoe. “This is one of many scams working groups will discuss at future gatherings with the ultimate goal of working collaboratively to help Americans protect themselves from this and other financial frauds.”  The working group addressed strategies to prevent victimization; using technology to disrupt the fraud; and collaboration on enforcement efforts. Several agencies also collaborated on an anti-victimization messaging campaign to warn Americans to remain vigilant against emerging fraud threats. In addition to speakers from law enforcement and regulatory agencies, participants heard remarks from CFTC Chairman Rostin Behnam and DOJ NCET Director Claudia Quiroz. Agencies below were among the participants: Federal Bureau of InvestigationsSocial Security Administration Office of the Inspector GeneralU.S. Attorney’s Office for the District of ColumbiaU.S. Attorney’s Office for the District of MassachusettsU.S. Department of the TreasuryU.S. Drug Enforcement AdministrationU.S. Postal Inspection ServiceU.S. Secret ServiceU.S. Securities and Exchange Commission * * * * If you or someone you know is a victim of a cryptocurrency investment fraud, report it to www.IC3.gov. In your complaint, please include as much information as possible in your report, including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.

Today, Department of Financial Services (“DFS”) Superintendent Adrienne A. Harris adopted guidance to protect consumers from unfair or unlawful discrimination by insurers using artificial intelligence. "New York has a strong track record of supporting responsible innovation while protecting consumers from financial harm,” said Superintendent Harris. “Today’s guidance builds on that legacy, ensuring that the implementation of AI in insurance does not perpetuate or amplify systemic biases that have resulted in unlawful or unfair discrimination, while safeguarding the stability of the marketplace.” The use of external consumer data and information sources (“ECDIS”) and artificial intelligence systems (“AIS”) can benefit insurers and consumers by simplifying and expediting insurance underwriting and pricing processes, however, it is critical that insurers who utilize such technologies establish a proper governance and risk management framework to mitigate the potential harm to consumers.  The guidance outlines DFS’s expectations for how all insurers authorized to write insurance in New York State develop and manage the integration of ECDIS, AIS, and other predictive models. Pursuant to DFS’s guidance, insurers are expected to: analyze ECDIS and AIS for unfair and unlawful discrimination, as defined in state and federal laws; demonstrate the actuarial validity of ECDIS and AIS; maintain a corporate governance framework that provides appropriate oversight of the insurer’s overall outcome of the use of ECDIS and AIS; and  maintain appropriate transparency, risk management, and internal controls, including over third-party vendors and consumer disclosures.   DFS has finalized the guidance with careful consideration of the valuable feedback received from regulated entities and other key stakeholders, including trade associations, advisory firms, universities, and the broader public.   Today’s announcement builds upon Governor Hochul’s first-ever statewide policy governing AI and commitment to making New York a leader in cutting-edge technology development and use. For a copy of the Circular Letter please visit the DFS website.

The Ontario Securities Commission (OSC) today published for comment a rule proposal that would establish a new process for returning money to harmed investors. The proposed process would apply when disgorgement is ordered in an enforcement proceeding before the Capital Markets Tribunal or the Ontario Superior Court of Justice, and the OSC receives sufficient funds to make a distribution feasible. The OSC is publishing the rule proposal to address recent legislative amendments to the Ontario Securities Act, the Commodity Futures Act, and the Securities Commission Act, 2021. Upon proclamation, the legislative amendments will create a statutory framework for the distribution of money received by the OSC under disgorgement orders. The rule proposal outlines: the circumstances in which money received under disgorgement orders is required to be distributed; the eligibility requirements for investors seeking a payment; the process for distributing disgorged amounts in cases where a court-appointed administrator is not used; and the use of other monetary sanctions and settlement payments to pay certain administrative costs in relation to the distribution of disgorged amounts.    Disgorgement is a type of monetary sanction imposed by the Capital Markets Tribunal or the Ontario Superior Court of Justice. Disgorgement sanctions require the respondent in a proceeding to pay any amounts they have obtained as a result of their non-compliance with securities law or commodity futures law. There is currently no prescribed process for making distributions to harmed investors from funds disgorged to the OSC. While disgorgement orders are not imposed to compensate investors, the legislative amendments contemplate that, in circumstances established under the proposed rule, amounts received under these orders could be distributed to investors who incurred direct financial losses as a result of the conduct giving rise to the order. Under the proposed rule, the OSC would be required to publish a report on each completed distribution to promote transparency and awareness about the distribution process. The OSC will also develop plain-language resources to help investors understand the new statutory distribution framework and the payment application process. Proposed OSC Rule 11-502 Distribution of Amounts Paid to the OSC under Disgorgement Orders, Proposed OSC Rule 11-503 (Commodity Futures Act) Distribution of Amounts Paid to the OSC under Disgorgement Orders and their companion policies are available on the OSC’s website. Please submit comments in writing on or before October 9, 2024. The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or companies offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

The B.C. Securities Commission today published advanced notice of adoption of a comprehensive regime for regulating the business conduct of dealers and advisers in the over-the-counter derivatives market, including a number of provisions that are specific to B.C. If approved by B.C.’s Minister of Finance, National Instrument 93-101 Derivatives: Business Conduct comes into force on September 28, 2024, and B.C. will join other Canadian securities regulators who published advanced notice of adoption in September 2023. With B.C.’s adoption of the Instrument and its related Companion Policy, the rule will become a National Instrument. The instrument to be adopted by B.C. includes several provisions that were necessary due to differences between B.C.’s Securities Act’s and securities legislation in other provinces. For derivatives dealers and advisers, the framework establishes fundamental obligations that are aligned with international standards and include requirements related to fair dealing, conflicts of interest, suitability, reporting non-compliance, and record-keeping. The business conduct rule is intended to help protect market participants by improving transparency, increasing accountability, and promoting responsible business conduct in the derivatives market. The business conduct rule was developed over an extensive three-stage consultation process that included a public roundtable to consider various regulatory, implementation, and compliance matters. In response to comments received during the most recent consultation, the final rule was streamlined to address potential negative impacts on derivatives market liquidity and to reduce implementation burden by better enabling firms to leverage their existing compliance systems.