The pandemic is a serious test for businesses, but it will pass, leaving behind an understanding of methods, approaches, and solutions to cope with problems in crisis and post-crisis situations.
Understanding this, the US Financial Regulatory Authority has introduced a temporary exemption from certain rules in connection with the coronavirus outbreak. The updated regulatory changes are of interest to entrepreneurs planning to obtain a US securities manager license and set up a financial services business in the US.
Restricted communications
Entrepreneurs need to come to terms with the reality: the business background is changing, and they will have to work in new conditions during this year and possibly next.
Companies are encouraged to develop plans to mitigate risks arising from relocation complications, mail failures, and other difficulties in communicating with customers.
To minimize risks in relation to the execution of transactions, access to funds and securities, companies should update their client information on their websites in a timely manner. It is also advisable to request advice on minimizing the risks of the US financial sector from an authorized body.
Favorable price for the buyer
If you want to start a deal to trade securities in the United States, then you and all other firms are advised to carefully choose the market for securities. The final price should be favorable to the buyer in this high volatility market environment.
You can also order a consultation on a private securities placement in the United States from our specialists for more information.
Fingerprint data
The SEC grants a temporary exemption from fingerprinting requirements. The end date for these temporary measures is still unknown and will be announced by the regulator on its web resources.
Our specialists will update you on regulatory news during a personal consultation in the field of American corporate law and securities.
Unregistered individuals who are required to submit fingerprints will have a 30-day period after the date the fingerprint requirements are canceled. Firms should keep records of such persons, including the date of hiring and firing.
Individual registration
Companies are encouraged to carefully check the information on the U4 and document information that cannot be verified. If verification is complicated due to a pandemic, then it is necessary to indicate the steps taken to verify it, the reasons why it cannot be verified.
It is also a good idea to ask for advice on regulatory requirements on information verification in the United States.
Qualification exams
The validity of qualifying exams is extended until the end of August this year. The regulator will continue to assess this situation to determine if additional extensions are needed. You can refuse exams as usual.
Extra time for reports
The deadline for filing annual reports has been extended to June 30. The reports assess business supervision systems. The regulator also said that meetings of the CEO / Chief Compliance Officer can now be held virtually.
If you wish to obtain a license to do business with digital assets in the United States, you should consider all of these requirements and subsequent updates from the Regulatory Authority.
Fixed Income Disclosure
Companies are required to disclose to retail customers information about transactions in corporate debt securities in the United States. In such cases, disclosed markups should be calculated based on the prevailing market price of the security. However, the current market volatility driven by the pandemic may make it difficult to evaluate pricing using existing procedures. Therefore, companies are allowed to generate more exceptions in their reports.
In light of the current extraordinary situation caused by the coronavirus pandemic, businesses need to take action to optimize business processes quickly and possibly revise their business strategy in line with the new reality. US regulators provide comprehensive support to businesses during a pandemic. IQ Decision UK specialists provide comprehensive advice on the impact of COVID-19 on US securities transactions.
