Fintech
SEC Chairman Jay Clayton Confirms Plans to Conclude Tenure at Year End
Washington, D.C.–(Newsfile Corp. – November 16, 2020) – Jay Clayton, Chairman of the Securities and Exchange Commission, confirmed today that after serving for more than three and a half years, he will conclude his tenure at the end of this year.
Chairman Clayton was sworn in on May 4, 2017, and will leave the SEC as one of its longest serving Chairs. During his tenure, Chairman Clayton focused the agency’s resources on advancing the interests of Main Street investors through initiatives that promoted economic growth, investment opportunity, market integrity and investor protection. Under Chairman Clayton’s leadership, the Commission enhanced the ability of businesses of all sizes to raise capital in our public and private markets, subject to strong and effective investor protections.
The Commission also strengthened its examination and enforcement programs, setting various annual records. During Chairman Clayton’s tenure the Commission obtained orders for over $14 billion in monetary remedies, including a record $4.68 billion in fiscal year 2020, and returned approximately $3.5 billion to harmed investors. The Commission conducted over 10,000 exams, including a record for the number of investment adviser exams in fiscal year 2018. In addition, during Chairman Clayton’s tenure, the Commission paid approximately $565 million to whistleblowers, including the largest single award in the program’s history ($114 million). More detail on the scope of the Commission’s work is available here.
“Working alongside the incredibly talented and driven women and men of the SEC has been the highlight of my career,” said Chairman Clayton. “I am proud of our collective efforts to advance each part of the SEC’s tripartite mission, always with an eye on the interests of our Main Street investors. The U.S. capital markets ecosystem is the strongest and most nimble in the world, and thanks to the hard work of the diverse and inclusive SEC team, we have improved investor protections, promoted capital formation for small and larger businesses, and enabled our markets to function more transparently and efficiently.”
“I would like to thank President Trump for the opportunity, and the support and freedom, to lead the women and men of the SEC,” continued Chairman Clayton. “In addition, the cooperation and assistance of Secretary Mnuchin and his team at the Department of the Treasury, Chair Powell and Vice Chair Quarles and their colleagues at the Federal Reserve, Chairmen Giancarlo and Tarbert and the CFTC, Chairman McWilliams and the FDIC, and our other fellow federal financial regulatory agencies have been remarkable. I also want to thank my immediate predecessor, Mary Jo White, and all former Chairs of the Commission. The opportunities we have had are a result of their efforts and stewardship. I am also grateful to my fellow Commissioners and the SEC staff for their dedication. Through their continued service, I know the SEC is well-positioned for prolonged success.”
Overseeing a Historically Productive Rulemaking Agenda
Under Chairman Clayton’s leadership, the agency experienced a historically productive rulemaking period, advancing more than 65 final rules to date from the Commission’s policy divisions and offices, many of which modernized and improved rule sets that had not been reviewed and updated in decades. To promote transparency and engagement with market participants, Chairman Clayton established the practice of using the agency’s congressionally-mandated near-term agendas as a transparent roadmap for Commission’s regulatory work over the next year. Under Chairman Clayton, the SEC has to date timely advanced an average of 86% of the initiatives on the near-term agendas.
An emphasis on transparency and modernization helped propel the agency forward on a great number of significant rulemakings and other policy enhancements under Chairman Clayton’s leadership. Highlights include:
- Substantially enhancing, through Regulation Best Interest, the standard of conduct required for broker-dealers when dealing with retail customers, and clarifying the fiduciary duties owed by investment advisers to their clients;[1]
- Providing retail investors with simple, easy-to-understand information about the nature of their relationship with their financial professional, through new Form CRS;
- Simplifying, improving and harmonizing the “patchwork” exempt securities offering framework utilized by smaller and medium-sized businesses and startups;
- Facilitating the ability of companies to transition to public status subject to strong investor protections, including through modernizing and simplifying corporate disclosures (including financial disclosures), expanding the scope of smaller public companies that qualify for scaled application of disclosure and other requirements, and expanding JOBS Act benefits to additional public companies while generally improving the review process for initial offerings;
- Increasing protections for retail investors against microcap fraud by modernizing the rule governing quotations in over-the-counter securities and issuing guidance regarding omnibus accounts;
- Enhancing the Commission’s whistleblower program rules to add clarity, transparency and efficiencies, allowing the Commission to get larger awards into the hands of whistleblowers at a faster pace;
- Standing up the comprehensive framework for the regulation of security-based swaps mandated by Title VII of the Dodd-Frank Act;
- Improving disclosure content requirements to reflect changes in technology, business operations and our economy more generally, including by adding a description of human capital resources as a specific disclosure requirement for the first time;
- Establishing a consistent framework to launch certain types of ETFs, promoting innovation and competition;
- Modernizing disclosure processes, both for companies and investment funds, to more effectively deliver material information to investors;
- Modernizing the shareholder engagement process, including the shareholder proposal process and the use of proxy voting advice businesses by investment advisers;
- Improving the National Market System (NMS) and rules governing securities exchanges and alternative trading systems to benefit investors; and
- Enhancing transparency in trading, including specific initiatives in alternative trading systems and the municipal bond market.
Strengthening the Commission’s Enforcement and Examination Programs
Chairman Clayton’s focus on the interests of long-term Main Street investors has also been reflected in the robustness of the Commission’s examination and enforcement programs. During Chairman Clayton’s tenure, the SEC increased the coverage rate of investment adviser examinations, with the total number of annual examinations in 2019 up more than 25% from 2016. The Office of Compliance Inspections and Examinations, together with colleagues across the agency, increased its focus on cybersecurity, publishing a number of risk alerts for registrants to help them prepare for and respond to emerging cyber threats.
Under Chairman Clayton’s leadership, the SEC’s Division of Enforcement established a Retail Strategy Task Force, Teachers’ Initiative, and Military Service Members’ Initiative to concentrate efforts to combat fraud and educate investors. The Enforcement Division also brought thousands of impactful cases and held individuals accountable, bringing charges against individuals in approximately 68 percent of its cases.
Since May 2017, the Commission:
- brought over 2,750 enforcement actions,
- obtained more than $14 billion in financial remedies,
- distributed approximately $3.5 billion to harmed investors, and
- paid awards of approximately $565 million to whistleblowers.
Under Chairman Clayton’s leadership, the SEC achieved record years in financial remedies ordered (2019, 2020) and its three highest years of whistleblower awards (2018, 2019, 2020). The SEC also distributed more funds to investors in 2017 and 2019 than any other year since the agency began tracking this metric in 2012.[2]
Navigating Changes in Our Markets and the COVID-19 Pandemic
The SEC also pivoted to deal with several unanticipated issues affecting investors and markets. Most notably, Chairman Clayton and his team of talented Division and Office leaders effectively steered the agency through the challenges posed by the COVID-19 pandemic, placing a priority on the health and safety of agency employees and market participants while seeking to ensure the integrity of the securities markets. Under Chairman Clayton’s leadership, the agency worked to ensure that markets continued to function in times of heightened volatility, including by closely coordinating with market intermediaries, investors, other market participants, and domestic and international regulators. The agency provided relief to allow market participants to adapt to evolving challenges, subject to appropriate conditions for the protection of investors. The agency also worked to promote robust disclosures from issuers on their operations and financial condition – including forward-looking disclosures – as efforts to fight COVID-19 progressed.
In addition to the global COVID-19 pandemic, the SEC effectively navigated several other significant developments in the markets, the country and the world during Chairman Clayton’s tenure.
Beginning in 2017, U.S. capital markets experienced a sudden proliferation of initial coin offerings (ICOs), products that, while potentially representing new frontiers in finance, also attracted substantial fraudulent activity. Under Chairman Clayton’s leadership the agency acted quickly and decisively to combat fraud and pave the way for innovation. Working together, the Division of Enforcement – including through its newly formed Cyber Unit –brought swift actions against those violating the federal securities laws while the Divisions of Corporation Finance, Investment Management and Trading and Markets provided clarity to investors and market professionals through a series of measured yet timely actions.
Chairman Clayton also has guided the agency through several major global shifts in financial regulation – some of which are still evolving –such as the European Union’s adoption of the MiFID II reforms, the transition away from LIBOR, and Brexit.
Leading Efforts to Promote Diversity, Inclusion and Opportunity
Under Chairman Clayton’s leadership, the SEC made great strides toward promoting diversity, inclusion and opportunity both within the agency and in the industries it regulates. Chairman Clayton served as Chair of the SEC’s Diversity Council and sponsor of the SEC’s African American Council; Hispanic and Latino Opportunity, Leadership, and Advocacy Committee; and Veterans Committee. He also led agency-wide roundtables and town halls on mentorship; unconscious bias; and diversity, inclusion and opportunity. It is Chairman Clayton’s view that diversity, inclusion and opportunity are not only the right thing, but that a collective commitment to these principles strengthens and enhances the performance of an organization. Among other initiatives advanced during Chairman Clayton’s tenure, the agency:
- released the SEC’s first-ever Diversity and Inclusion Strategic Plan, which outlines specific goals and strategies for continuing to build a workforce that will deliver on the SEC’s mission;
- created and implemented an agency-wide mentoring program;
- created the new position of Senior Policy Advisor on Diversity and Inclusion; and
- launched a number of further initiatives to promote diversity, inclusion and opportunity throughout the agency, including through enhancing diversity on hiring committees and interview panels; promoting equity and opportunity for selection to senior leadership positions; improving succession planning by providing more leadership development opportunities; and enhancing inclusion for colleagues with disabilities.
Chairman Clayton and his staff also participated in numerous public events dedicated to diversity, inclusion and opportunity, including with the National Association of Securities Professionals, SIFMA, the Association of African-American Financial Advisors, and the New America Alliance. In addition, several of the SEC’s advisory committees held special meetings dedicated to promoting diversity, inclusion and opportunity in their respective industries. More about the SEC’s past and ongoing efforts to promote diversity, inclusion and opportunity is available here.
Chairman Clayton was born at Fort Eustis in Newport News, Virginia, and was raised primarily in central and southeastern Pennsylvania. In his professional career, he has lived in Philadelphia, New York, London, and Washington, DC. Prior to joining the Commission, Chairman Clayton was a partner at Sullivan & Cromwell LLP, where he was a member of the firm’s Management Committee and co-head of the firm’s corporate practice. From 2009 to 2017, Chairman Clayton was a Lecturer in Law and Adjunct Professor at the University of Pennsylvania Law School.
Prior to joining Sullivan & Cromwell, Chairman Clayton served as a law clerk for the Honorable Marvin Katz of the U.S. District Court for the Eastern District of Pennsylvania. A member of the New York and Washington, DC bars, Chairman Clayton earned a BS in Engineering from the University of Pennsylvania (summa cum laude), a BA and MA in Economics from the University of Cambridge (Thouron Scholar), and a JD from the University of Pennsylvania Law School (cum laude, Order of the Coif).
[1] For the first time, regardless of whether an investor chooses a broker-dealer or an investment adviser, the investor is entitled to a recommendation that is in the investor’s best interest and that does not place the interests of the firm or the financial professional ahead of the investor.
Fintech
Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Fintech
SPAYZ.io prepares for iFX EXPO Dubai 2025
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Fintech
Airtm Enhances Its Board of Directors with Two Strategic Appointments
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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