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Vedder Thinking | Articles SEC Issues Statement in Response to the Report of the President’s Working Group on Financial Markets

Newsletter/Bulletin

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On August 6, 2020, the President’s Working Group on Financial Markets released its Report on Protecting United States Investors from Significant Risks from Chinese Companies, which included certain recommendations for the SEC regarding the need to strengthen investor protections and to promote the integrity of U.S. capital markets by (1) leveling the playing field for all companies listed on U.S. exchanges, and (2) improving disclosure regarding, and consideration by fiduciaries and other market professionals of, the risks of investing in emerging markets, including China. On August 10, 2020, the SEC issued a statement in response to the report. The statement highlighted various SEC initiatives to bring attention to the risks of investing in emerging markets countries; noted that SEC Chairman Jay Clayton had directed the SEC staff to prepare proposals in response to the recommendations in the report; noted the SEC staff’s emerging markets roundtable held in July 2020 at which investors, regulators and other industry participants and experts discussed issues relating to investing in emerging markets, including China; and encouraged the public to provide comments or other information for the SEC to consider as it develops responses to the report.

The SEC’s statement is available here, and the report of the President’s Working Group on Financial Markets is available here.



Professionals



John S. Marten

Shareholder



Nathaniel Segal

Counsel



Jacob C. Tiedt

Shareholder



John M. Sanders

Associate