Journal of Investment Compliance最新文献

{"title":"Shades of blue in financing: Transforming the ocean economy with blue bonds","authors":"Joy Mathew, Claire Robertson","doi":"10.1108/joic-04-2021-0020","DOIUrl":"https://doi.org/10.1108/joic-04-2021-0020","url":null,"abstract":"\u0000Purpose\u0000To provide an overview of how blue bonds can have a transformative impact on the blue- and ocean-based economies.\u0000\u0000\u0000Design/methodology/approach\u0000This article provides an overview of what a blue bond is, the process for issuing a blue bond, the transformative effects blue bonds can have on ocean economies, and the areas ocean economies should focus on to attract investors and catalyze investment into their ocean economies.\u0000\u0000\u0000Findings\u0000This article concludes blue bonds present an opportunity to not only achieve strong financial returns but to also contribute to a meaningful environmental and social impact on ocean economies. As the public and private sectors develop initiatives to catalyze investment into ocean initiatives, it is likely the investment community will eagerly adopt blue bonds into the suite of sustainable finance products, driving greater investment into ocean economies and supporting the health of our oceans.\u0000\u0000\u0000Practical implications\u0000One of the key constraints for blue-bond growth is the lack of familiarity to this product among market participants. Unlike its other ESG-labeled counterparts, blue bonds are not regulated by a set of principles such as those prescribed by the International Capital Markets Association (ICMA). Clarifying the alignment of globally recognized standards such as the ICMA principles and its correlation to blue financing may help ocean industries to achieve greater recognition within the sustainable bond market framework and can make the market aware of important characteristics of ocean industries, including differing risks and opportunities.\u0000\u0000\u0000Originality/value\u0000Practical guidance from experienced lawyers in ESG bonds and blue economy initiatives.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115319700","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"China’s forthcoming digital currency: implications for foreign companies and financial institutions in China","authors":"Betty L. Louie, Martha Wang","doi":"10.1108/JOIC-04-2021-0017","DOIUrl":"https://doi.org/10.1108/JOIC-04-2021-0017","url":null,"abstract":"\u0000Purpose\u0000To answer key questions about China’s forthcoming digital currency, the Digital Currency Electronic Payment (DCEP) or “digital yuan.”\u0000\u0000\u0000Design/methodology/approach\u0000Discusses prospective legal standards and guidelines; expected features compared with traditional payment methods and other digital currencies; how DCEP works; status of pilot programs; use of DCEP for cross-border payments; transparency, data protection and cybersecurity issues; and key implications for foreign businesses and financial institutions in China.\u0000\u0000\u0000Findings\u0000When DCEP is officially launched in China, there is little doubt that the population can easily adapt to its use. The launch of DCEP can have significant ramifications on a global scale, as it could reduce China’s reliance on the SWIFT system for international banking and offers the first glimpse of the internationalization of the renminbi (RMB).\u0000\u0000\u0000Practical implications\u0000Foreign companies operating in China, hi-tech businesses, retailers, financial institutions, and mobile app developers need to track the development and acceptance of DCEP, monitor arising risks, assess how their financial products fit, and adjust business operations, reporting requirements and financial reserves related to the requirements and use of DCEP, expected growth in fintech surrounding digital currencies.\u0000\u0000\u0000Originality/value\u0000Practical advice from experienced mergers and acquisitions, private equity, strategic investment and capital markets lawyers.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134241830","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"SEC updates regulatory framework for good faith determinations of fair value","authors":"C. Palmer, Paul J. Delligatti, Andrew Zutz, W. Lane","doi":"10.1108/JOIC-04-2021-0019","DOIUrl":"https://doi.org/10.1108/JOIC-04-2021-0019","url":null,"abstract":"\u0000Purpose\u0000To explain the new U.S. Securities and Exchange Commission (“SEC”) Rule 2a-5 (the “Fair Value Rule”) under the Investment Company Act of 1940 (the “1940 Act”), which addresses the valuation practices of registered investment companies and business development companies.\u0000\u0000\u0000Design/methodology/approach\u0000Provides an overview of the Fair Value Rule, followed by a more detailed summary of the key provisions, including relevant guidance provided by the SEC in the release adopting the Fair Value Rule.\u0000\u0000\u0000Findings\u0000The Fair Value Rule establishes a specific framework, a standard of baseline practices across funds, and a set of required functions that must be performed in order to determine in good faith the fair value of a fund’s investments for purposes of applying Section 2(a)(41) of the 1940 Act.\u0000\u0000\u0000Originality/value\u0000Practical guidance from experienced investment management lawyers.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"108 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132929974","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"SEC guidance on broker-dealer custody of digital asset securities","authors":"Holly Smith","doi":"10.1108/JOIC-04-2021-0013","DOIUrl":"https://doi.org/10.1108/JOIC-04-2021-0013","url":null,"abstract":"\u0000Purpose\u0000To explain how the U.S. Securities and Exchange Commission (SEC), in its Digital Asset Securities Release, issued on December 23, 2020, laid out its vision for how broker-dealers can comply with the custody requirements of Rule 15c3-3 under the Exchange Act (the Customer Protection Rule) for investments in digital asset securities.\u0000\u0000\u0000Design/Methodology/Approach\u0000Explains the current regulatory uncertainty for broker-dealers doing a business in digital asset securities and developing systems and procedures that result in compliance with the custody requirements of the Customer Protection Rule; seven minimum steps that broker-dealers can take and nine terms and conditions with which they can comply to protect against SEC enforcement action; and the SEC’s request for comment in response to its position statement.\u0000\u0000\u0000Findings\u0000A broker-dealer operating pursuant to the terms and conditions of the position statement articulated in the Release will not be subject to SEC enforcement action on the basis that the broker-dealer deems itself to have obtained and maintained physical possession or control of customer fully paid and excess margin digital asset securities for the purposes of paragraph (b)(1) of the Customer Protection Rule.\u0000\u0000\u0000Originality/Value\u0000Practical guidance from experienced financial services, broker-dealer and securities lawyer.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131494099","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"New developments on regulation of cryptocurrency in China","authors":"W. Shen","doi":"10.1108/JOIC-11-2020-0045","DOIUrl":"https://doi.org/10.1108/JOIC-11-2020-0045","url":null,"abstract":"\u0000Purpose\u0000To describe recent regulatory developments in China on digital renminbi (RMB), initial coin offerings (ICOs), cryptocurrency holdings, cryptocurrency exchanges and blockchain technology.\u0000\u0000\u0000Design/methodology/approach\u0000Describes a digital RMB pilot program, seven government agencies’ bans on ICOs and cryptocurrency exchanges, the legality of holding and trading cryptocurrencies in China and the government’s endorsement of blockchain technology.\u0000\u0000\u0000Findings\u0000No PRC law or regulation prohibits Chinese investors from holding or trading cryptocurrencies but Bitcoin is defined as a virtual commodity, not a currency. Despite a ban on ICOs and cryptocurrency exchanges, the People’s Bank of China (PBOC) and other government agencies endorse blockchain technology as long as its goal is to service the real economy.\u0000\u0000\u0000Originality/value\u0000Expert guidance from lawyer with experience in foreign investment, cross-border mergers and acquisitions, capital markets, fund formation and venture capital and private equity investments in China.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126962857","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Contagion of COVID-19 pandemic between oil and financial assets: the evidence of multivariate Markov switching GARCH models","authors":"Achraf Ghorbel, A. Jeribi","doi":"10.1108/JOIC-01-2021-0001","DOIUrl":"https://doi.org/10.1108/JOIC-01-2021-0001","url":null,"abstract":"\u0000Purpose\u0000In this paper, we investigate empirically the time-frequency co-movement between the recent COVID-19 pandemic, G7stock markets, gold, crude oil price (WTI) and cryptocurrency markets (bitcoin) using both the multivariate MSGARCH models.\u0000\u0000\u0000Design/methodology/approach\u0000This paper examines the relationship between the volatilities of oil, Chinese stock index and financial assets (cryptocurrency, gold, and G7 stock indexes), for the period January 17th 2020 to December 10th 2020. It tests the presence of regime changes in the GARCH volatility dynamics of bitcoin, gold, Chinese, and G7 stock indexes as well as oil prices by using Markov–Switching GARCH model. Also, the paper estimates the dynamic correlation and volatility spillover between oil, Chinese and financial assets by using the MSBEKK-GARCH and MSDCC-GARCH models.\u0000\u0000\u0000Findings\u0000Overall, we find that all variables display a strong volatility concentrated in the first four months of Covid-19 outbreak. The paper conducts different backtesting procedures of the 1% and 5% Value-at-Risk forecasts of risk. The results find that gold has the lowest VaR. However, the Canadian and American indices have the highest VaR, for respectively 1% and 5% confidence level. The estimation results of MSBEKK-GARCH prove the volatility spillover between Chinese index, oil and financial assets. Although, the past news about shocks in the Chinese index significantly affects the current conditional volatility of financial assets. Moreover, for the high regime, the correlation increased between Chinese and G7 stock indexes which proving the contagion effect of the COVID-19 pandemic. On the contrary, the correlation decreased between Chinese-gold and Chinese-bitcoin, which confirming that gold and bitcoin can be considered as an alternative hedge for some investors during a crisis. During the COVID-19 pandemic, the correlations for the couples oil-gold and oil-bitcoin peaked. Contrary to gold, bitcoin cannot be considered as a safe haven during the global pandemic when investing in crude oil.\u0000\u0000\u0000Originality/value\u0000In contrast, comparative analysis in terms of responses to US COVID-19 pandemic, the US Covid-19 confirmed cases have relative higher impact on the co-movement in WTI and bitcoin. This paper confirms that gold is a safe haven during the COVID19 pandemic period.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134124983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The relevance of compliance audit on companies’ compliance with disclosure guidelines of financial statements","authors":"M. M. Thottoli","doi":"10.1108/JOIC-12-2020-0047","DOIUrl":"https://doi.org/10.1108/JOIC-12-2020-0047","url":null,"abstract":"\u0000Purpose\u0000This paper examines the relevance of compliance audit on companies’ compliance with disclosure guidelines of financial statements with special reference to the case of companies registered in the Muscat Securities Market (MSM), Oman.\u0000\u0000\u0000Design/methodology/approach\u0000This paper adopts a direct measure of compliance prescribed and published in the annual report of Capital Market Authority (CMA) and its executive regulation from period 2011 to 2019.\u0000\u0000\u0000Findings\u0000The finding shows that there is a positive association with audit on companies’ compliance with disclosure guidelines of financial statements that enrich companies to ensures adherence to regulatory guidelines of Oman.\u0000\u0000\u0000Practical implications\u0000The key limitation of the study is that it depends on a transparency indicator from a secondary source. Further, this might encourage companies to appoint qualified compliance officer which will be a value addition for best practice of corporate governance (CG) of the organizations.\u0000\u0000\u0000Originality/value\u0000The evidence recommends that audit on companies’ compliance with disclosure guidelines of financial statements is a significant factor that helps the company to enhance its financial performance and provides assurance to the government that the company follows applicable rules and regulations. It also recommends that the appointment of designated compliance officer assures adherence to companies’ regulatory guidelines of Oman. Besides, conducting research in audit on companies’ compliance with disclosure guidelines of financial statements brings novelty in the literature in emerging countries. As per best knowledge of the researchers, there has been no empirical study (within the literature) observed, which inspires much encouragement to do this study.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115502281","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A case of insufficient safeguards or state-enabled money laundering? ‘Golden Passport’ and ‘Golden Visa’ investment schemes in Europe","authors":"G. Pavlidis","doi":"10.1108/JOIC-01-2021-0002","DOIUrl":"https://doi.org/10.1108/JOIC-01-2021-0002","url":null,"abstract":"\u0000Purpose\u0000To critically examine recent developments and proposals for the regulation and supervision of ‘golden passport’ and ‘golden visa’ investment schemes in Europe. We argue that FATF standards constitute an appropriate response to money-laundering risks associated with such investment schemes, but the EU needs to introduce further common rules, safeguards and control mechanisms in the aftermath of the recent scandal in Cyprus.\u0000\u0000\u0000Design/methodology/approach\u0000This paper draws on reports, legislation, legal scholarship and other open-source data to examine golden passport and golden visa investment schemes in the EU.\u0000\u0000\u0000Findings\u0000The EU has to forge a common approach to mitigate money-laundering risks associated with golden passport and golden visa investment schemes, taking into consideration the FATF standards.\u0000\u0000\u0000Originality/value\u0000This is the first study examining golden passport and golden visa investment schemes in the EU in the aftermath of the Cypriot scandal and proposing the overhaul of the EU legal framework in this regard.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"98 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115951178","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"SEC amends rules on financial reporting of business acquisitions and dispositions","authors":"Richard J. Parrino","doi":"10.1108/JOIC-07-2020-0011","DOIUrl":"https://doi.org/10.1108/JOIC-07-2020-0011","url":null,"abstract":"\u0000Purpose\u0000This article examines the comprehensive amendments recently adopted by the US Securities and Exchange Commission (SEC) to its accounting and other rules that govern financial statement filing requirements for significant business acquisitions and dispositions.\u0000\u0000\u0000Design/methodology/approach\u0000The article provides an in-depth analysis of the rule changes in the context of the SEC’s attempt to balance the right of investors to obtain adequate information about the impact of an acquired or disposed business on an SEC registrant against the filing burdens that can result from over-identification of acquisitions or dispositions as material to the registrant based on the SEC’s “significance” tests.\u0000\u0000\u0000Findings\u0000The rule amendments bring enhanced coherence to a reporting framework that has been characterized in part by inconsistencies, gaps, unreliable valuation principles, and ambiguities. The amendments contribute to the SEC’s ongoing disclosure effectiveness initiative by updating, clarifying, and codifying many requirements that had developed piecemeal in market practice or through guidance issued by the SEC’s staff.\u0000\u0000\u0000Originality/value\u0000This article provides expert guidance on a major SEC disclosure requirement from an experienced securities lawyer.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128729997","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do agency conflicts between managers and shareholders affect corporate risk management and financial performance of Saudi firms?","authors":"Lamia Jamel, Hanadi Eid Albogami, Mazen Abduljahn Abdulaal, Nuha Ahmed Aljohani","doi":"10.1108/JOIC-11-2020-0044","DOIUrl":"https://doi.org/10.1108/JOIC-11-2020-0044","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to examine the impact of agency conflicts between managers and shareholders on corporate risk management and financial performance of Saudi firms listed in the Saudi Stock Exchange Tadawul.\u0000\u0000\u0000Design/methodology/approach\u0000To investigate the effect of agency conflicts between managers and shareholders on corporate risk management and financial performance, we use a sample of 180 Saudi firms listed in the Saudi Stock Exchange Tadawul during the period from 2009 to 2018. Econometrically, we employ Vector Autoregressive (VAR) and General Linear Model (GLM) techniques as an appropriate methodology.\u0000\u0000\u0000Findings\u0000Our findings show that the risk level of the last year increase the corporate risk management and the performance of Saudi firm. We remark that the separation amongst control and ownership generates agency conflicts amongst managers and shareholders which can affect their behavior in decision-making and performance of the Saudi firms. Thus, the conflicts of interest arise from the differences among the work horizon, the risk assumed, the performance of enterprises, and the level of remuneration desired by the managers and shareholders in the case of Saudi firms.\u0000\u0000\u0000Originality/value\u0000The main contributions of our paper prove that the deepen the study of agency costs linked to a shareholding structure through the analysis of monitoring, obligation, and opportunity costs in the Saudi firms.\u0000","PeriodicalId":399186,"journal":{"name":"Journal of Investment Compliance","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114742183","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}