An Opinion by ASA’s Iacovella ahead of a Senate Banking hearing on corporate governance asks the SEC to take action on proxy advisory firms.
S. 1117 addresses an issue of government regulation picking winners and losers. Because of this, municipalities are being forced to seek higher cost borrowing options, reduce their short-term capital consumption, and terminate infrastructure projects that benefit their communities. By forcing municipal investors out of prime and tax-exempt funds and into government funds, the SEC’s floating NAV rule has increased costs on taxpayers and businesses without any material benefit, other than creating artificial demand for U.S. government deficit spending. ASA… read more →
The Corporate Governance Coalition for Investor Value (the “Coalition”) was formed to provide a forum to advocate for strong corporate governance policies and federal securities laws that promote long-term value creation for investors. The Coalition strongly supports H.R. 4015, the Corporate Governance Reform and Transparency Act, which would provide for effective oversight of proxy advisory firms. 180627_Coalition_HR4015_Crapo_Brown
The EDA was proud to be a part of such an important policy goal: making it easier for small companies to go public and stay public. This is not only good for small businesses, but it is also necessary for our economy to continue to grow and create jobs.
EDA’s Iacovella writes about the need to stand up for main street investors, who are the bedrock of our financial system, and put the use of their money first.
For Immediate Release May 22, 2018 The Equity Dealers of America Applauds Launch of New Retail Investor Education Campaign Earlier this morning the Equity Dealers of America and other leading national member associations launched a first of-its-kind education and advocacy campaign, aimed at prioritizing the interests of retail investors. Titled the Main Street Investors Coalition, the new initiative is intended to address an investment system which has become increasingly politicized in recent years and which systematically disadvantages every-day investors.… read more →
EDA and a group of diverse industry organizations came together to offer policymakers and regulators important recommendations to strengthen U.S. public capital markets by making it easier for more companies to go public and stay public. The report focuses on the following: Enhancements to the JOBS Act; Recommendations to Encourage More Research of Emerging Growth Companies and Other Small Public Companies; Improvements to Certain Corporate Governance, Disclosure, and Other Regulatory Requirements; Recommendations Related to Financial Reporting; and Equity Market Structure.… read more →
The EDA filed a brief at the Supreme Court in the Lucia v. SEC case, which will be heard in early April. The EDA believes important Constitutional issues exist in this case with respect to Due Process and Separation of Powers. We asked the Supreme Court to reverse the judgment of the United States Court of Appeals for the District of Columbia Circuit on these issues in an effort to preserve the basic constitutional protections provided by the founders of… read more →
Washington, D.C.—The Chief Executive Officer of the Equity Dealers of America, Chris Iacovella, released the following statement today after the Senate Banking Committee Hearing “Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission”. “We strongly support Chair Clayton’s position that ICOs are security offerings that should be registered with the SEC. This issue is about investor protection, pure and simple, and investors should be afforded all of the protections they… read more →
Some brokerage firms are concerned that the tax overhaul could lead to upheaval, pushing their employees to set up their own shops or switch firms to lower their tax bills. “We are very concerned at the impact this could have on the ability of firms in the industry to offer different business models,” said Christopher Iacovella, who runs the Equity Dealers of America, a trade association for regional brokerages including Janney Montgomery Scott, D.A. Davidson Companies and Raymond James Financial… read more →
In the wealth management business there are two models: one in which the financial advisors (FAs) are independent contractors and are eligible for the pass-through tax treatment and the other model in which the FAs are employees (Employee FAs) and not eligible for the pass-through tax treatment. We believe that adopting language in the tax code that chooses one business model over another was an unintended consequence of the tax reform effort, and that it can be corrected. EDA Letter to… read more →
“If the disparate tax treatment between the two models finds its way into the final legislation, then [financial advisers] could be motivated to leave employee FA model firms or re-classify as independent contractors solely [to] take advantage of the 23% deduction…and receive a lower tax rate on their income,” wrote Christopher A. Iacovella, EDA chief executive. “We request a change in the final language to prevent any tax arbitrage that could threaten the employee FA business model.” http://www.investmentnews.com/article/20171213/FREE/171219963
The Chief Executive Officer of the Equity Dealers of America, Chris Iacovella, released the following statement today about the “U.S. Treasury Department’s Second Report on The Administration’s Core Principles Of Financial Regulation, which focused on Capital Formation”: “The EDA strongly supports the recommendations in the Treasury report. We believe they are necessary to help small businesses. The current equity market structure does not work for small and mid-size companies. Now is the time to fix the current market structure… read more →
EDA submitted a letter asking the SEC to create a uniform best interest standard for broker-dealers and investment advisors using the DOL Impartial Conduct Standards as its baseline. Letter to SEC on Best Interest Standard 2017
Reforming the capital markets has become a priority for investors, issuers, public equity firms, and regulators in the wake of the dramatic decline in the number of public companies in the U.S. The EDA had the chance to discuss how to achieve this objective with NASDAQ. https://listingcenter.nasdaq.com/clearinghouse.aspx#qna
EDA strongly supports efforts to improve the capital formation process, the secondary trading, and the research environment for small businesses. Increased access to capital will lead to job creation. Small Business Access to Capital Submission to Treasury
The EDA is a member of the Corporate Governance Coalition for Investor Value, which sent a letter today to the SEC asking it to increasing its shareholder proposal re-submission thresholds. The coalition believes that “[r]ule14a-8 increasingly has been used by a minority of activist shareholders to promote agendas that are uncorrelated to enhancing long-term value for shareholders” who waste company resources by submitting “the same proposals year after year”. CGCIV Final Resubmission Thresholds letter (002)
The EDA sent a letter to FINRA recommending that it not move forward with its Proposal to provide a safe harbor for desk commentary. The EDA believes that the Proposal is not workable, it lacks an adequate cost-benefit analysis, it misconstrues how the sales and trading business of its membership works in practice, and it puts examiners in the unenviable position of evaluating desk commentary under the subjective “I know it, when I see it” standard. The Proposal imposes the… read more →
The Equity Dealers of America submitted a comment letter to the SEC urging the agency to decline to approve a rule proposal from Bats Exchange that would further complicate the equity market structure and add little to no value to market participants. EDA Letter to SEC on Bats Proposal SR-BatsBZX-2017-34