Regulatory Alerts2023-12-05 | 2023-25807Added
Clearing Agency Governance and Conflicts of Interest
The Securities and Exchange Commission is adopting Rule 17Ad-25 to enhance the governance of registered clearing agencies by reducing conflicts of interest that may influence their boards. The final rule establishes new requirements for board composition, including a majority of independent directors, and mandates specific structures for nominating and risk management committees. Additionally, the rules require robust policies to identify and mitigate conflicts of interest, formal oversight of service provider risks, and documented consideration of stakeholder viewpoints.
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