A bill introduced in the House of Representatives on June 3 would establish permanent offices within the Securities and Exchange Commission and the Commodity Futures Trading Commission to support oversight and engagement with financial technology companies.
H.R. 3690, titled the Securing Innovation in Financial Regulation Act, was introduced by Representative Frank Lucas and referred to the House Committee on Financial Services and, additionally, to the Committee on Agriculture.
The bill would codify the Strategic Hub for Innovation and Financial Technology—known as FinHub—within the SEC. Under the proposed legislation, the commission would be required to establish FinHub as a formal committee no later than 180 days after enactment. FinHub would serve as a resource on emerging financial technologies, engage with market participants, and facilitate communication with companies developing financial innovations. Its members would be drawn from divisions including Trading and Markets, Corporate Finance, and Investment Management.
The bill mandates that FinHub submit an annual summary of engagement activities to the Commission by October 31 each year, which would be included in the Commission’s annual report to Congress. These reports must not contain confidential information.
The bill would also codify LabCFTC as a permanent office within the CFTC. According to the text, LabCFTC would promote responsible financial technology innovation, serve as an information platform for the Commission, and provide outreach to fintech innovators. Its Director, appointed by the Commission, would report directly to the Commission.
Among LabCFTC’s stated responsibilities: advising on rulemaking, providing internal education, engaging with academia and professionals, and maintaining records of public engagements. LabCFTC would be required to submit annual reports by October 31, detailing its activities, including the number of meetings with outside parties, general discussion topics, steps taken to improve Commission services, and any recommendations made to the Commission.
Both agencies would be expected to implement the provisions of the bill, including required reporting and recordkeeping systems, within 180 days of the bill’s enactment.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.