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Industry regulations change seemingly overnight. It’s impossible to pay attention 24/7, and while Ascent makes it easy to monitor important changes, it’s also important to stay current. 

That’s why we’re rounding up some significant news items for you to consider from the past few weeks. 

Those of us in highly regulated industries realize the importance of making sure we stay up to date with changes that might affect. With that in mind, take a look at a few recent items of interest:

Global: Consumer Data & Privacy

Australia, the United States, and the United Kingdom all have emerging regulations to protect the rights of consumers regarding personal data. Although present across all industry sectors, focus is on digital interaction that are prevalent in the financial services industry.

Referred to as the Consumer Data Right (CDR), this emerging open banking regulation’s goal is to provide consumers with more control over their personal data by enabling them to share that data with the businesses they select for uses they choose.

This regulation is meant to aid consumers in choosing a financial services provider and enable future innovation in the space. 

United States Only: SEC Proposes to Include Certain Market Participants as “Dealers” or “Government Securities Dealers”

In response to concerns that algorithm-based, high frequency proprietary trading firms are now acting as a significant source of market liquidity, the SEC has proposed two new rules that would require these firms to register with the SEC under the Securities Exchange Act of 1934 and become members of a self-regulatory organization (e.g., FINRA), subject to certain dollar thresholds.

We expect that these new rules may require managers of large pension funds and hedge funds to have to register as securities dealers and/or government securities dealers. This would present a new market segment for 

Interested in learning more about how Ascent can support your RIA or Broker-Dealer? Learn More. 

United States Only: EC Staff Bulletin on Account Recommendations to Retail Investors

The SEC has issued staff guidance on how to satisfy their obligations to retail investors when making investment recommendations under Reg BI and the Investment Advisers Act, which is an area of SEC focus in 2022. The guidance is not a regulation or law creating new obligations, but rather is a statement of how the regulator expects Broker-Dealers and RIAs to satisfy their obligations.


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