CII Balks at House Proposals to Change Shareholder Proposal Rules, Quarterly Financial Reports and XBRL DisclosureCII sent a letter to leaders of a House Financial Services Committee panel expressing concerns about three bills dealing with financial regulation that were discussed at a May 23 hearing. One would hike resubmission thresholds for filing shareholder proposals. Noting that shareholder proposals have ushered in may significant improvements to corporate governance, CII said that current thresholds provide a reasonable amount of time for emerging issues to gain traction. A second bill to make quarterly financial reporting optional would eliminate potentially critical information investors rely on, CII argued. The third bill would eliminate or ease requirements for certain kinds of companies to use XBRL technology for their SEC filings. If enacted, CII said, the legislation would impede efforts to modernize disclosure and make company filings less useful to investors.
CII Backs SEC Oversight of Cryptocurrencies and ICOsIn a May 8 letter to SEC Chair Jay Clayton, CII expressed support for the SEC’s efforts to police cryptocurrencies and initial coin offerings (ICOs). CII’s letter cited lessons learned from the 2008 financial crisis about the dangers of unregulated markets. In the wake of that market meltdown, CII strongly supported a robust regulatory regime for over-the-counter derivatives markets. Noting the exponential growth of the cryptocurrency and ICO markets, CII urged the SEC to “err on the side of investors and other market participants” in determining which cryptocurrencies and ICOs are securities. Federal regulation will ensure that investors have the protections and information they need to make informed judgments about what they are investing in as well as an array of remedies to address fraud or abuse. CII also asked the SEC to consider additional guidance or rulemaking to create a more transparent and uniform approach to regulating these products.
CII Supports MSCI’s New Approach to Dual-Class Listings, With ModificationsCII submitted a comment letter to MSCI May 9 on the index provider’s consultation regarding the treatment of unequal voting structures. MSCI proposed in January to factor into each security the proportion of each constituent’s total voting power in free float.
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News & Highlights
- May 24 - Samsonite Shares Suspended over Governance and Accounting Claims
- May 22 - Congress Approves Plan to Roll Back Post-Financial-Crisis Rules for Banks
- May 22 - Wynn Resorts Shareholders Rebuff Executive Compensation Plan
- May 22 - CFTC Issues Guidance for Firms Offering Cryptocurrency Derivatives
- May 21 - GOP Senate Aide Considered for SEC Post
- May 21 - New York Stock Exchange to Have First Female Leader in 226-Year History
- May 18 - Dealpolitik: CBS Directors Play a Subtle Game in Viacom Battle
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