NO 241 – MARCH 2013
The Future is Social

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WFE Focus March 2013
Regulation

Bursa Malaysia revamps business rules for securities brokers

Bursa Malaysia issued the revamped rules of Bursa Malaysia Securities to strike a balance between being facilitative of business and market development and, ensuring the effectiveness for market regulation. The revamped rules will take effect on 2 May 2013.

Singapore Exchange forms working committee to review listing rules

The Singapore Exchange has set up a Working Committee to conduct a comprehensive review of the listing manual to enhance the robustness, efficacy and relevance of the listing framework in Singapore. The Working Committee has commenced its review to identify areas of possible enhancements to strengthen Singapore’s attractiveness as a capital market.

Stock Exchange of Thailand to adjust rule for securities traded in cash balance account

The Stock Exchange of Thailand has extended the period of trading using cash balance account for securities showing abnormal trading patterns, for which investors are required to deposit the full purchase amount prior to trading, to six consecutive weeks, from the previous minimum of three weeks, to be in line with the current trading situation and protect investors from damage. The adjustment will be effective from 1 March 2013.

SEC moves to clarify social media rules

The Securities and Exchange Commission has sought to quell confusion among investment firms about the use of channels such as Facebook and Twitter for marketing communications by clarifying its social media rules.

Under the rules, mutual funds and other investment companies are required to file certain advertisements for review by the Financial Industry Regulatory Authority (Finra).

But the SEC says that firms are showing an ‘abundance of caution’ in their interpretation of the guidelines and are filing too much material for review with Finra.

The updated guidance provides examples of the kinds of communications that the SEC believes would fall foul of the rules, and social posts that would not trigger a filing requirement.

Norm Champ, director of the division of investment management, says: “Today’s inaugural IM Guidance Update on social media is intended to help firms strengthen their compliance efforts by providing meaningful real life examples in a format that is accessible to all on the SEC’s website.”

Read the guidance update at http://www.sec.gov/divisions/investment/guidance/im-guidance-update-filing-requirements-for-certain-electronic-communications.pdf