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Court Holds Securities Laws Inapplicable to Some ADR Transactions

Court held federal securities laws do not apply to U.S. transactions in unlisted, unsponsored American Depositary Receipts for a foreign issuer’s shares where the ADR purchases depended on prior purchases of common stock on a foreign exchange. Stoyas v. Toshiba Corporation

Swing Pricing for Institutional Money Market Funds Proposed

SEC proposed amendments to Rule 2a-7 under the Investment Company Act of 1940. One key element is a requirement that institutional prime and institutional tax-exempt money market funds adopt swing pricing policies so investors bear the liquidity costs of redemptions.

Amendments to Rule 10b5-1 Trading Plans for Corporate Insiders

The SEC issued proposed amendments to Rule 10b5-1. As academic studies and news articles have pointed out, however, the current Rule 10b5-1 allows room for gaming the system. It is these loopholes that the new proposed amendments are largely intended to prevent.

Universal Proxy Cards in Contested Director Elections Required

On November 17, 2021, the U.S. Securities Exchange Commission announced the adoption of new rules requiring the use of universal proxy cards in contested director elections. The new rules are effective for any shareholder meeting held after August 31, 2022.

SEC Form SR Due Date is Ambiguous

SEC proposed to amend its rules to require issuers to disclose share repurchases on a new Form SR which must be furnished before the end of the first business day on which the share repurchase has been executed.  Unfortunately, this requirement is fraught with ambiguities.

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