2023-11-10T10:20:49-06:00 2022-12-31 042442519 EDELSTEIN & COMPANY LLP 160 FEDERAL STREET 9TH FLOOR BOSTON MA 02110 990 2022-01-01 300406260 COMMITTEE ON CAPITAL MARKETS REGULATION INC C/O HAL S SCOTT COMM 8572426747 134 MT AUBURN STREET CAMBRIDGE MA 02138 HAL S SCOTT PRESIDENT/DIRECTOR 8572426747 2023-11-09 1 HAL SCOTT 999009999 0 EUGENE BORGONZI P01269879 6172276161 2023-10-31 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z HAL S SCOTT 134 MT AUBURN STREET CAMBRIDGE MA 02138 3468871 0 X WWW.CAPMKTSREG.ORG X 2007 DE TO RESEARCH AND ADDRESS SPECIFIC ISSUES AFFECTING THE REGULATION OF U.S. CAPITAL MARKETS. 5 4 13 5 0 0 2658850 3032038 35563 43153 33862 21874 51828 55062 2780103 3152127 0 0 0 0 1943495 1932661 0 0 287560 620852 908270 2564347 2840931 215756 311196 4672372 5567505 255071 1073033 4417301 4494472 X THE SPECIFIC PURPOSES FOR WHICH THE CORPORATION IS FORMED INCLUDE: 1) EXPLORING A RANGE OF ISSUES RELATED TO MAINTAINING AND IMPROVING THE COMPETITIVENESS OF THE US CAPITAL MARKETS; 2) RECOMMENDING POLICY CHANGES THAT SHOULD BE MADE, (CONTINUED ON SCHEDULE O) OR AREAS OF RESEARCH THAT SHOULD BE PURSUED; 3) PRESERVING AND ENHANCING THE BALANCE BETWEEN EFFICIENT AND COMPETITIVE CAPITAL MARKETS AND SHAREHOLDER PROTECTION; AND 4) PURSUING OTHER SIMILAR AREAS OF STUDY AND DISCUSSION. 0 0 2083991 0 43153 THE COMMITTEE ON CAPITAL MARKETS REGULATION, INC. IS AN INDEPENDENT AND NONPARTISAN RESEARCH ORGANIZATION DEDICATED TO IMPROVING THE REGULATION OF U.S. CAPITAL MARKETS. THE COMMITTEE'S RESEARCH PROVIDES POLICYMAKERS WITH A NONPARTISAN EMPIRICAL FOUNDATION FOR PUBLIC POLICY AS WELL AS EDUCATES THE PUBLIC ON THESE ISSUES. IN 2022, THE COMMITTEE RELEASED ONE MAJOR REPORT: FINANCIAL REGULATORY AGENCIES AND THE RULE OF LAW (OCT. 2022). THE COMMITTEE ALSO PREPARED ANOTHER MAJOR REPORT - U.S. LISTING BY CHINESE COMPANIES - THAT WAS RELEASED IN JANUARY 2023. THE EXPENSES ASSOCIATED WITH THESE REPORTS WERE LIKELY IN THE RANGE OF $[250,000]. THE COMMITTEE ALSO RELEASED TWO STATEMENTS: (1) THE UNPRECEDENTED INCIDENCE OF RECENT RULEMAKINGS BY THE SEC (JUL. 2022); AND (2) THE SEC STAFF ACCOUNTING BULLETIN NO. 121 AND ISSUES IN CRYPTO ASSET CUSTODY (DEC. 2022). IN ADDITION TO ITS MAJOR REPORTS AND STATEMENTS, THE COMMITTEE UPDATED ITS ANNUAL ANALYSIS MONETARY SANCTIONS IMPOSED BY U.S. ENFORCEMENT AGENCIES, SUBMITTED TEN COMMENT LETTERS TO THE SEC, AND SUBMITTED ONE COMMENT LETTER TO THE FEDERAL RESERVE. " 2083991 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 16 0 13 1 0 0 0 0 0 0 0 0 0 0 0 0 X 5 4 1 0 1 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 MA NY X CRISTINA LEONE 8572426747 134 MT AUBURN STREET CAMBRIDGE MA 02138 HAL S SCOTT PRESIDENT/DIRECTOR 30.00 X X 650000 0 17000 ROBERT GLENN HUBBARD CO-CHAIR/DIRECTOR 0.50 X X 0 0 0 JOHN L THORNTON CO-CHAIR/DIRECTOR 0.50 X X 0 0 0 LESLIE N SILVERMAN DIRECTOR 0.50 X 0 0 0 BARBARA G NOVICK DIRECTOR (APPT. 1/14/22) 0.50 X 0 0 0 JACQUELINE MCCABE VP/SECRETARY 20.00 X 70000 0 2100 CRISTINA LEONE TREASURER/CFO 16.00 X 82500 0 7027 JOHN A GULLIVER EXECUTIVE DIRECTOR 30.00 X 380312 0 18319 JON ONDREJKO SR. RESEARCH FELLOW 50.00 X 134069 0 9397 MEGAN VASIOS DEPUTY DIRECTOR 25.00 X 107152 0 11290 CONNOR KORTJE SR. RESEARCH FELLOW 50.00 X 169316 0 11159 1593349 0 76292 5 0 1 0 ALLEN & OVERY LLP 1101 NEW YORK AVE NW WASHINGTON DC 20005 RESEARCH CONSULTING 123248 1 3032038 55138 3032038 OUTSOURCED RESEARCH CO 541900 43153 43153 43153 42468 42468 51936 0 51936 51936 51936 296150 316744 -20594 -20594 -20594 OTHER INCOME 900099 3126 3126 3126 3152127 46279 0 73810 X 1227257 775523 263229 188505 572414 500219 36554 35641 16602 14449 983 1170 25882 21896 1882 2104 90506 64464 14869 11173 960 960 39170 39170 4000 4000 8709 8709 493025 472972 6455 13598 35114 17975 15424 1715 30681 19808 8713 2160 208816 149708 34374 24734 47509 27224 15283 5002 14805 10641 2406 1758 21329 21329 LICENSE FEES 4152 4152 2840931 2083991 469380 287560 208719 317537 1858618 2437640 450000 272500 179040 159865 245737 171064 136918 57430 56987 79488 1536428 1316784 0 10095 136843 802532 4672372 5567505 74908 266742 180163 806291 255071 1073033 X 4407301 4262078 10000 232394 4417301 4494472 4672372 5567505 X 311196 -241923 7898 X X 0 1 X 1 0 X 2402203 2459254 1362404 2658850 3032038 11914749 2402203 2459254 1362404 2658850 3032038 11914749 3880759 8033990 211626 130605 22374 69629 94404 528638 5412 3126 8538 12451925 107112 0.64520 0.64650 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: CREDIT CARD CASH BACK REWARDS - 2021 AMOUNT: $ 5,412. 2022 AMOUNT: $ 3,126. FORM 990, SCHEDULE A, PUBLIC SUPPORT SHORT YEAR THE BOARD OF DIRECTORS VOTED TO AMEND THE BYLAWS TO CHANGE THE ORGANIZATION'S YEAR END FROM JULY 31 TO DECEMBER 31 EFFECTIVE DECEMBER 31, 2020. THEREFORE THE 2020 TAX YEAR WAS A SHORT YEAR RUNNING FROM AUGUST 1, 2020 TO DECEMBER 31, 2020. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 4000 0 4000 0 2836931 0 2840931 0 292047 0 73012 0 0 0 0 0 257974 163622 278217 292047 991860 1487790 8345 1250 3750 4000 17345 64494 40906 69554 73012 247966 371949 0 0 0 0 0 88339 41924 46415 14865 11697 3168 33714 3809 29905 79488 457(B) PLAN ASSETS 116567 SECURITY DEPOSIT 39600 OTHER ASSET 362 RIGHT OF USE ASSET 646003 802532 457B PLAN PAYABLE 116567 OPERATING LEASE LIABILITY 689724 806291 2962493 -241923 53100 7898 -180925 3143418 8709 8709 3152127 2885322 53100 53100 2832222 8709 8709 2840931 PART XI, LINE 2D - OTHER ADJUSTMENTS: WRITE OFF OF PRIOR YEAR ACCRUED EXPENSES 7,898. X 1 1 X X X X 0 0 0 0 0 0 0 1 0 HAL S SCOTT PRESIDENT/DIRECTOR 529500 0 100000 0 20500 0 17000 0 0 0 667000 0 0 0 JOHN A GULLIVER EXECUTIVE DIRECTOR 309812 0 50000 0 20500 0 7477 0 10842 0 398631 0 0 0 CONNOR KORTJE SR. RESEARCH FELLOW 161816 0 7500 0 0 0 5154 0 6005 0 180475 0 0 0 PART I, LINE 1A FIRST CLASS TRAVEL IS PROVIDED FOR HAL S. SCOTT, PRESIDENT, IN THE CASE OF LONG TRIPS WHERE PRIVACY IS NEEDED FOR WORKING ON CONFIDENTIAL DOCUMENTS, WHEN BUSINESS CLASS TICKETS ARE NOT AVAILABLE, OR A FREE UPGRADE TO FIRST CLASS IS AVAILABLE. PART I, LINE 7 ALL OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES RECEIVED A DISCRETIONARY BONUS IN 2022. THE BONUSES ARE DETERMINED BASED ON THE MARKET RATE FOR SIMILAR ROLES AT OTHER SIMILAR ORGANIZATIONS. THE BONUS WAS APPROVED BY THE BOARD OF DIRECTORS. X 1 55138 STOCK MARKET QUOTE 0 0 0 PART I, COLUMN (B): THE ORGANIZATION USED THE NUMBER OF CONTRIBUTIONS RECEIVED DURING 2022 TO REPORT THE NUMBER OF CONTRIBUTIONS IN COLUMN (B) LINE 9. THERE WAS ONLY ONE STOCK DONATION DURING 2022. FORM 990, PART VI, SECTION A, LINE 2 HAL S SCOTT & JOHN A. GULLIVER - BUSINESS RELATIONSHIP HAL S. SCOTT & JACQUELINE MCCABE - BUSINESS RELATIONSHIP HAL S. SCOTT & CRISTINA LEONE - BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS WERE AMENDED TO INCREASE THE THRESHOLD FOR OFFICERS TO EXECUTE CONTRACTS AND PAYMENTS TO INDEPENDENT CONTRACTORS ON BEHALF OF THE ORGANIZATION FROM $35,000 TO $150,000. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION IS A RELATIVELY SMALL ORGANIZATION AND HAD ONLY UP TO 5 BOARD MEMBERS AT ANY ONE TIME. THEREFORE, THERE ARE NO COMMITTEES. THE FULL BOARD ACTS ON ALL MATTERS DURING BOARD MEETINGS AND MINUTES ARE KEPT OF THOSE MEETINGS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED THOROUGHLY BY THE CORPORATION'S OFFICERS BEFORE FILING. A COPY OF THE FORM 990 IS PROVIDED TO AND REVIEWED BY THE BOARD OF DIRECTORS BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C ARTICLE VII OF THE CORPORATION'S BY-LAWS GOVERN CONFLICTS OF INTEREST. THE BY-LAWS DEFINE POTENTIAL CONFLICTS OF INTEREST AND SET OUT THE PROCESS FOR DISCLOSING POTENTIAL CONFLICTS OF INTEREST AND APPROVAL OF CONTRACTS AND TRANSACTIONS INVOLVING POTENTIAL CONFLICTS OF INTEREST. AT WEEKLY STATUS MEETINGS, ALL MAJOR ACTIVITIES OF THE CORPORATION ARE DISCUSSED BY THE CORPORATION'S OFFICERS WHERE ANY POTENTIAL CONFLICTS OF INTEREST CAN BE IDENTIFIED. IN ADDITION, EACH DIRECTOR AND EACH OFFICER IS REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST DISCLOSURE FORM. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT (OFFICERS AND KEY EMPLOYEES) INCLUDED A REVIEW AND APPROVAL BY INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS WHO WERE PROVIDED A REPORT FROM AN INDEPENDENT PROFESSIONAL COMPENSATION CONSULTANT PROVIDING, INTER ALIA, COMPARABILITY DATA, AND THE BOARD'S DELIBERATION AND DECISION WERE CONTEMPORANEOUSLY MEMORIALIZED IN THE MINUTES OF THE BOARD MEETING. THE INDEPENDENT PROFESSIONAL COMPENSATION CONSULTANT WAS HIRED TO PROVIDE 2022 COMPENSATION PLANNING INFORMATION UPDATES AS APPROPRIATE FOR THE FOLLOWING: HAL S. SCOTT JOHN GULLIVER JACQUELINE MCCABE CRISTINA LEONE FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, WHICH INCLUDE ITS CONFLICT OF INTEREST POLICY, AND ITS FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON WRITTEN REQUEST. FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 11,700. MANAGEMENT AND GENERAL EXPENSES 1,250. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 12,950. PUBLIC RELATIONS: PROGRAM SERVICE EXPENSES 36,000. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 36,000. RECRUITING: PROGRAM SERVICE EXPENSES 22,973. MANAGEMENT AND GENERAL EXPENSES 5,205. FUNDRAISING EXPENSES 5,685. TOTAL EXPENSES 33,863. RESEARCH CONSULTING: PROGRAM SERVICE EXPENSES 402,299. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 7,913. TOTAL EXPENSES 410,212. FORM 990, PART XI, LINE 9: WRITE OFF OF PRIOR YEAR ACCRUED EXPENSES 7,898. FORM 990, PART XII, LINE 2C: SINCE THE BOARD OF DIRECTORS WAS COMPRISED OF UP TO ONLY 5 INDIVIDUALS AT ANY ONE TIME DURING THE YEAR, THE FULL BOARD ASSUMED RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT.