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ThinkerStreet FinReg Pocket Guide (V1.0)

The first step in analyzing a company’s disclosures or legal, financial, social risks ratings is understanding who the regulator is. Below is a quick handbook for U.S. financial regulation with some information on global regimes that affect U.S. companies. Details about global ESG regulation is also included.

Financial Regulations Guide
Equity
Stocks
Regulators: SEC, SROs (FINRA, Stock Exchanges)
Laws: Securities Act of 1933, Securities Exchange Act of 1934, State “Blue Sky” Laws
REITs (Real Estate Investment Trusts)
Regulator: SEC, IRS, SROs (FINRA, Stock Exchanges)
Laws: Securities Act of 1933, Internal Revenue Code
Fixed Income
Bonds
Corporate Bonds: SEC
Municipal Bonds: SEC, MSRB
Commercial Paper: Regulated by SEC under certain circumstances
Laws: Securities Act of 1933, Trust Indenture Act of 1939, MSRB Rules, Securities Exchange Act of 1934
Certificates of Deposit (CDs)
Cash Equivalents
Money Market Funds
Derivatives
Futures Contracts
Regulator: CFTC
Laws: Commodity Exchange Act
Options Contracts
Regulator: CFTC (commodity options), SEC (equity options)
Laws: Commodity Exchange Act, Securities Exchange Act of 1934
Swaps
Regulator: CFTC, SEC (depending on structure)
Laws: Commodity Exchange Act, Securities Exchange Act of 1934, Dodd-Frank Act
Forwards
Regulator: CFTC (certain types)
Laws: Commodity Exchange Act, potentially other relevant laws
Structured Products
Notes, Certificates, Exchange-Traded Notes (ETNs), Principal-Protected Notes
Regulator: SEC, potentially CFTC (depending on structure)
Laws: Securities Act of 1933, Commodity Exchange Act, other relevant securities laws
Alternative Investments
Hedge Funds, Private Equity, Venture Capital
Real Estate
Direct Ownership
Private Real Estate Funds and REITs
Regulator: SEC, FINRA (for REITs), state real estate commissions
Laws: Applicable securities laws, state real estate laws
Commodities
Physical Commodities (e.g., gold, oil)
Regulator: CFTC
Laws: Commodity Exchange Act
Commodity-Focused Funds and ETFs
Regulator: SEC, CFTC (depending on structure)
Laws: Commodity Exchange Act, and, where applicable, securities laws
Infrastructure and Other Real Assets
Includes: Infrastructure, Timberland, Agriculture
Regulator: Depends on the investment vehicle’s structure; direct investments might not have a specific federal regulator but are subject to environmental and land use regulations at the federal, state, and local levels. Infrastructure investments can be regulated by various bodies depending on the sector (e.g., Federal Energy Regulatory Commission for energy infrastructure).
Laws: Environmental laws, land use regulations, and other sector-specific regulations for infrastructure (e.g., energy, transportation).
Private Debt
Includes: Loans, mezzanine financing, distressed debt
Regulator: SEC (if traded or if the fund offering the debt is registered), state regulators
Laws: Securities Act of 1933, Securities Exchange Act of 1934 (for traded debt), state securities laws
Secondaries
Includes: Investments in existing private equity or hedge fund stakes
Regulator: SEC
Laws: Securities Act of 1933, as transactions involve securities; specific regulations may depend on the nature of the underlying assets.
Other Instruments
Mutual Funds and ETFs:
Mutual Funds
Regulator: SEC
Laws: Investment Company Act of 1940
Exchange-Traded Funds (ETFs)
Regulator: SEC
Laws: Investment Company Act of 1940, Securities Exchange Act of 1934, Rule 6c-11 of the Investment Company Act of 1940
Insurance Products
Regulator: State Insurance Departments
Laws: State Insurance Regulations
Foreign Exchange (Forex)
Regulator: CFTC, NFA, and to lesser extent, SEC. Treasury Department and Federal Reserve play role in monetary policy
Laws: Commodity Exchange Act
Crowdfunding Investments
Regulator: SEC
Laws: JOBS Act Title III
Digital Assets and Emerging Technologies
Digital Assets and Cryptocurrencies
Regulator: SEC (securities-related aspects), CFTC (commodities-related aspects), FinCEN (for anti-money laundering), IRS, FTC
Laws: Securities Act of 1933, Commodity Exchange Act, Bank Secrecy Act (for AML/CFT compliance), Investment Advisors Act of 1940
Peer-to-Peer Lending
Regulator: SEC, FTC
Laws: Securities Act of 1933, Dodd-Frank Wall Street Reform and Consumer Protection Act
Robo-Advisors
Regulator: SEC
Laws: Investment Advisers Act of 1940
Additional Considerations
Sarbanes-Oxley Act: Enhances corporate governance and financial reporting, impacting all publicly traded companies in the U.S.
Dodd-Frank Wall Street Reform and Consumer Protection Act: Introduced regulations impacting various aspects of financial markets, including derivatives, hedge funds, and consumer protection.
Consumer Protection Laws: Various regulations like the Truth in Lending Act (TILA) and the Fair Credit Reporting Act (FCRA) protect consumers in specific financial products.
Global Regulation, Sustainability, and Governance
Overview of International Regulatory Organizations

International Organization of Securities Commissions (IOSCO):

Facilitates global cooperation and information sharing among securities regulators, affecting American corporations through its declarations and norms.

Financial Stability Board (FSB):

Crafts and promotes international financial regulatory principles, impacting American policies on capital sufficiency and systemic risk oversight.

Basel Committee on Banking Supervision (BCBS):

Establishes worldwide banking standards including capital sufficiency, stress evaluations, and liquidity risk in markets. Its Basel III protocol significantly influences American banks and financial entities.

Navigating Cross-Border Regulatory Compliance
General Data Protection Regulation (GDPR):

Impacts American businesses processing data of EU citizens, enforcing data protection norms and potentially imposing data transfer limitations.

Financial Action Task Force (FATF):

Dictates international standards for anti-money laundering and terrorist finance combatting. Its regulations for virtual asset service providers affect American entities in the digital currency arena.

Markets in Financial Instruments Directive (MiFID II):

Governs investment entities and markets within the EU, affecting American firms providing services or products within the EU.

Exploring Additional International Frameworks
Involvement with regional and global frameworks such as the Council for Financial Stability of the Americas (FSAI) and the International Association of Insurance Supervisors (IAIS) also impacts American financial entities globally.
In-depth Examination of Sustainability and Governance (ESG) Investments and Frameworks
Principal ESG Reporting and Disclosure Protocols include International Integrated Reporting Council (IIRC), Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB), and UN Sustainable Development Goals (SDGs).

Trends in Regulatory Requirements for ESG Disclosures are evolving globally, with the EU leading in establishing thorough ESG reporting norms.

Global and Regional ESG Initiatives like UN Global Compact, Carbon Disclosure Project (CDP), and Principles for Responsible Investment (PRI) promote sustainability and transparency.

ESG Performance Benchmarking and Evaluation through Dow Jones Sustainability Indices (DJSI), and ESG Ratings by agencies like LSEG, MSCI, and Sustainalytics, and emerging technology platforms like THINKERSTREET LLC.

Innovative Strategies and Approaches for ESG Investments, including impactful investing and thematic ESG investments focusing on areas like renewable energy and social welfare.

Diverse ESG Standards and Considerations are present across sectors and regions, contributing to a varied landscape of ESG standards.
Additional Financial Landscape Considerations
Impact of Financial Technology and Cybersecurity: The rise of fintech innovations reshapes traditional financial markets, emphasizing the importance of cybersecurity.

Integration of International Financial Instruments like Eurobonds and ETFs highlights the significance of understanding global financial regulatory considerations.

Evolving Digital Asset Regulations necessitate clear regulatory frameworks for digital assets, including cryptocurrencies and NFTs.

Getting Started: ThinkerStreet Markets WebApp.

Becoming a Member and Logging In

There are two login profiles that will need to be created. 

(1) ThinkerStreet Website Access Profile

First, a Member must purchase one of the membership tiers from the home page. Upon purchase, the Member will receive instant access privileges to the ThinkerStreet website. 

NOTE: ThinkerStreet.com currently does not have premium content. However, in the coming months, the platform will post a growing offering of content that will supplement ThinkerStreet software. These offerings will include ThinkerStreet-generated content as well as links to third-party resources.

(2) ThinkerStreet Matlab Webapp Server Login

ThinkerStreet’s software is currently hosted on a Matlab Webapp Server. Matlab is well-recognized for being a premium language in the realms of engineering, physics, and the sciences. ThinkerStreet currently uses Matlab for its high-performance and ability to run extremely fast and powerful calculations.

When a Member purchases a membership, they will be required to provide an email address that will be recognized by ThinkerStreet Webapp Server. This can be the same email address upon signup or a different one.

If using a GMAIL account, users can login to the ThinkerStreet Webapp Server through the GMAIL login option. Currently, only GMAIL is supported, but ThinkerStreet expects to add other services as well.

If the Member does not have a GMAIL account, they may register directly on the ThinkerStreet Webapp Server’s login page and create a password specifically for the ThinkerStreet Webapps.

* Please note that access to the ThinkerStreet Webapp Server may take up to two (2) business days. Your membership will begin from the time you receive confirmation of access email.

The ThinkerStreet Webapp sign-in page can be found at the top of each page under the “APP” Icon, or a Member may simply go to app.ThinkerStreet.com.

Once logged-in, Members will be able to select a ThinkerStreet software application and run it. It normally takes 30 seconds for the ThinkerStreet Webapp to load.

Once the ThinkerStreet Webapp loads, users will be able to accept the end-user license and begin using the software.

Startup Page

The application starts in Basic Research mode and immediately computes and displays the average risk scores for all companies in the database. Please see the LSEG documentation for a thorough analysis of the risk ratings.

Research Modes (Basic vs. Advanced)

ThinkerStreet’s software program offers two research modes: Basic and Advanced. For those wishing for quick access to company intelligence and risks, Basic offers an out-of-the-box way to conduct company searches. For those that wish to go into deeper detail, creating benchmarks and filtering companies by country and industry, among other ways, then Advanced Research empowers the Member to conduct a thorough review.

Basic Research

Content to be added

Advanced Research

Content to be added.