Regulatory Alerts2022-08-23 | 2022-17316Added
Clearing Agency Governance and Conflicts of Interest
The Securities and Exchange Commission proposes new Rule 17Ad-25 to strengthen the governance of registered clearing agencies by mitigating conflicts of interest and enhancing board oversight. The rule mandates specific board composition requirements, including a majority of independent directors, and establishes standards for nominating and risk management committees. Additionally, it requires clearing agencies to implement policies for managing conflicts, overseeing critical service providers, and formally considering stakeholder viewpoints.
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