As referenced in the opening scene of the 2023 Oscar-winning film Oppenheimer, Prometheus, the Greek god of forethought, is best known for stealing fire from the gods to give to humanity. As punishment, Zeus had Prometheus...more
Two new rules that significantly expand who may be required to register as a "dealer" or a "government securities dealer" were adopted by the Securities and Exchange Commission (SEC) on February 6, 2024. As a result of this...more
Katten's Financial Markets and Funds Quick Take is a monthly newsletter highlighting key noteworthy developments potentially affecting financial markets and funds....more
FINRA Updates its Sweep on Social Media Influencers, Customer Acquisition and Related Information Protection -
On February 28, the Financial Industry Regulatory Authority (FINRA) provided an update for its sweep on Social...more
SEC Announces Inspection Priorities for 2023 -
On February 7, the Securities and Exchange Commission (SEC) announced its inspection priorities for the current year. The announcement began by noting that the SEC examined 15...more
2/22/2023
/ Broker-Dealer ,
Disclosure Requirements ,
Enforcement Actions ,
Environmental Social & Governance (ESG) ,
Fiduciary Duty ,
Fund Managers ,
Investment Adviser ,
Investors ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Whistleblowers
Katten Named Leader in Blockchain and Cryptocurrency in Chambers FinTech 2023 Guide -
Katten announced that the firm had attained a superior ranking in the Chambers FinTech 2023 guide. Katten was recognized as a leader in...more
The SEC Remains in Search of and Is Looking for Finders -
Much has been written on the topic of finders and arrangers of securities transactions, including when a person or entity acting as a finder (i.e., someone who...more
On July 27, 2022, FINRA filed a proposed rule change with the SEC to make it easier for brokers to work from home. The proposed rule will add a category termed a “Residential Supervisory Location” under FINRA Rule 3110...more
8/16/2022
/ Acquisitions ,
Broker-Dealer ,
Compliance ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
FinTech ,
Investment Adviser ,
Investment Funds ,
Mergers ,
Registered Investment Advisors ,
Securities and Exchange Commission (SEC) ,
Spoofing ,
UK
Regulatory Alert! A Joint Audit Committee Reminder to FCM Legal and Compliance Personnel -
The Joint Audit Committee (JAC) is a club of futures exchanges, in their capacities as selfregulatory organizations (SROs). Under a...more
Katten’s Financial Markets and Funds Quick Take is a monthly newsletter highlighting key noteworthy developments potentially affecting financial markets and funds.
...more
5/12/2022
/ Banking Sector ,
Broker-Dealer ,
Climate Change ,
Comment Period ,
Cryptoassets ,
Disclosure Requirements ,
FDIC ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Services Industry ,
Proposed Rules ,
Securities and Exchange Commission (SEC)
Welcome to the inaugural issue of Katten’s Financial Markets and Funds Quick Take. Each month, Quick Take will highlight key noteworthy developments potentially affecting financial markets and funds.
...more
Key Points -
- New proposed SEC rules would expand who may be considered a dealer or a government securities dealer under the Securities Exchange Act of 1934.
- If the proposed new rules are adopted, a large group of...more
Recent Commodity Futures Trading Commission (CFTC) enforcement actions rely on the anti-manipulation provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to punish misstatements made to...more
Key Points -
Effective as of August 16, the dollar amount tests specified in the definition of “Qualified Client” in Rule 205-3 under the Investment Advisers Act of 1940 (Advisers Act) will increase for the net-worth...more
The Financial Industry Regulatory Authority (FINRA) recently issued a Regulatory Notice (Notice) reminding firms of their obligations with respect to best execution and payment for order flow....more
Key Points -
- Beginning February 1, new and amended rules will go into effect in New York that require certain individuals associated with investment advisers to register with the state and to meet examination...more
Eight years after the Commodity Futures Trading Commission (CFTC or Commission) established a comprehensive swap data reporting and public dissemination regulatory regime, on September 17, the Commission adopted extensive...more
Key Points -
- The Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations (OCIE) recently released a Risk Alert warning investment advisers, broker-dealers, investment companies,...more
Key Points -
- Recent Securities and Exchange Commission (SEC) enforcement actions against investment advisers and fund managers point to continued pressure points in the areas of conflicts of interest and disclosures to...more
A proprietary trading firm was sanctioned by a sixth futures-industry regulator for purported spoofing trades by one of three employees many years ago. For the employees’ aggregate alleged misconduct, the firm was first...more
3/3/2020
/ Bitcoin ,
Broker-Dealer ,
CFTC ,
Chicago Mercantile Exchange (CME) ,
Cryptocurrency ,
Enforcement Actions ,
ETFs ,
Financial Industry Regulatory Authority (FINRA) ,
Proposed Rules ,
Sanctions ,
Securities and Exchange Commission (SEC) ,
Spoofing
Last week, a commissioner at the Securities and Exchange Commission proposed a rule that would provide a bright line when a digital asset initially issued to raise funds to help develop a new network might later be regarded...more
2/11/2020
/ AML/CFT ,
Blockchain ,
Broker-Dealer ,
Cryptocurrency ,
Digital Assets ,
Distributed Ledger Technology (DLT) ,
Enforcement Actions ,
Initial Coin Offering (ICOs) ,
Registration Requirement ,
Safe Harbors ,
Securities and Exchange Commission (SEC) ,
Token Sales ,
Virtual Currency
It was not part of the recently concluded Golden Globes ceremony, but last week both the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations and the Financial Industry Regulatory Authority...more
1/14/2020
/ Aiding and Abetting ,
Broker-Dealer ,
Business Continuity Plans ,
CFTC ,
Digital Assets ,
Financial Industry Regulatory Authority (FINRA) ,
Form CRS ,
Hong Kong Securities and Futures Commission (HKSFC) ,
OCIE ,
Regulation BI ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC) ,
Swap Dealers
The New York State Department of Financial Services proposed a self-certification regime for the approval of new digital coins by licensed virtual currency firms similar to the process applied by the Commodity Futures Trading...more
12/17/2019
/ Bitcoin ,
BitLicense ,
Broker-Dealer ,
CFTC ,
Cryptoassets ,
Cryptocurrency ,
Cybersecurity ,
Distributed Ledger Technology (DLT) ,
Final Rules ,
Financial Institutions ,
Initial Coin Offering (ICOs) ,
NYDFS ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Self-Certification ,
Swap Dealers ,
Virtual Currency
A social media company and its wholly owned subsidiary sued by the Securities and Exchange Commission for conducting an offering of an unregistered digital security claimed that the agency was wrong in its characterization of...more
11/19/2019
/ Broker-Dealer ,
CFTC ,
Cross-Border Transactions ,
Cryptoassets ,
Cryptocurrency ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Initial Coin Offering (ICOs) ,
IOSCO ,
Professional Disciplinary Actions ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Swap Dealers ,
Unregistered Securities ,
Virtual Currency
Two weeks ago, a federal court of appeals sided with the Commodity Futures Trading Commission ruling that a district court could not require the testimony of three commissioners and various staff to assess whether the agency...more
11/5/2019
/ Broker-Dealer ,
CFTC ,
Civil Contempt Orders ,
Consent Order ,
Contempt ,
Criminal Contempt ,
Department of Justice (DOJ) ,
Financial Industry Regulatory Authority (FINRA) ,
Food Manufacturers ,
Gag Orders ,
Kraft ,
Market Manipulation ,
Price Manipulation ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements ,
Spoofing