The People’s Bank of China (“PBOC”) announced this morning that it is banning crypto currencies and related services, including “trading, order matching, token issuance and derivatives for virtual currencies are strictly...more
9/24/2021
/ Bitcoin ,
China ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
Enforcement Actions ,
Financial Instruments ,
Financial Regulatory Reform ,
Financial Services Industry ,
Investment Opportunities ,
Regulatory Oversight ,
Token Sales ,
Trading Restrictions ,
Virtual Currency
This past Tuesday, September 21, the chorus calling for more regulation over crypto reached a sort of crescendo.
The SEC -
Earlier, in September 14 testimony before the Senate Banking Committee [1], former CFTC and current...more
9/23/2021
/ Anti-Money Laundering ,
BSA/AML ,
Cryptocurrency ,
Digital Currency ,
Financial Services Industry ,
Popular ,
Regulatory Agenda ,
Regulatory Oversight ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Unregistered Securities ,
Virtual Currency
On August 27, the Securities and Exchange Commission (“SEC”) issued a broad request for information and comments on “gamification” in financial-market user interfaces, including artificial intelligence and machine learning,...more
8/31/2021
/ Artificial Intelligence ,
Broker-Dealer ,
Comment Period ,
Digital Platforms ,
Financial Markets ,
Investment ,
Machine Learning ,
Regulatory Agenda ,
Retail Investors ,
Rulemaking Process ,
Securities and Exchange Commission (SEC)
The Financial Industry Regulatory Authority (“FINRA”) recently kicked off a “sweep” examination with its August 2021 Targeted Exam Letter on “practices and controls related to the opening of options accounts and related...more
On August 13, 2021, the Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 21-29, collecting guidance on outsourcing and vendor management. The Notice was prompted by increased reliance on outsourcing...more
Since the appointment of Allison Heron Lee as interim SEC chair, the SEC has pushed an ESG agenda in all things from corporate disclosures, to investment companies, international standards and even enforcement. ...more
Last week, FINRA issued Regulatory Notice 21-16 cautioning member firms against attempting to limit customer claims through language in mandatory pre-dispute arbitration agreements. Rule 2628 prescribes disclosure...more
In a March 15, 2021 address to the Center for American Progress, SEC Acting Chair Lee was clear:
No single issue has been more pressing for me than ensuring that the SEC is fully engaged in confronting the risks and...more
On March 4, FINRA issued a Regulatory Notice warning member firms not to fall for phishing scam preying on compliance fears. The scam uses a phony email address, supports@finra-online.com, demanding an immediate response to...more
On March 4, Acting Chair Allison Herren Lee announced the creation of a “Climate and ESG Task Force” of 22 members from across the Enforcement Division...more
The U.S. Securities and Exchange Commission (“SEC”) released its 2021 Examination Priorities on March 3. The Examinations group – elevated last December to Division status (formerly the Office of Compliance Investigations...more
3/5/2021
/ BSA/AML ,
Climate Change ,
Coronavirus/COVID-19 ,
Cybersecurity ,
Environmental Social & Governance (ESG) ,
FinTech ,
Infectious Diseases ,
Investment ,
Libor ,
OCIE ,
Regulation Best Interest ,
Retail Investors ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
The price of Bitcoin recently topped $57,000. New York’s Attorney General issued an Investor Alert on Virtual Currency Risks, as did the SEC’s Division of Examinations....more
In an SEC filing Friday, February 26, Robinhood Financial and Robinhood Securities disclosed they are negotiating with FINRA, the SEC, and state regulators, attempting to settle investigations into options-trading and outages...more
Acting SEC Chair Allison Herren Lee issued a February 24 statement directing the Commission Staff to review public-company climate-change-related disclosures. The Staff will assess current disclosures in light of the SEC’s...more
The Deposit Trust & Clearing Corp. (“DTCC”) released a February 24 roadmap for shortening the settlement cycle for US equities by half over the next two years. The proposal anticipates DTCC’s completion of its “Project ION”...more
The U.S. Climate Finance Working Group released its February 18, 2021 policy statement, “Financing a U.S. Transition to a Sustainable Low-Carbon Economy.” The Working Group comprises eleven of America’s leading...more
The Securities Industry and Financial Markets Association (“SIFMA”) recently proposed sweeping modernization of industry self-regulatory rules to reflect firms’ successful pivot to remote operations over the past year. SIFMA...more
Republican-appointee Commissioners Roisman and Peirce issued a statement on February 12 publicly disagreeing with Acting Chair Lee’s recent fiat discontinuing the Enforcement Division’s practice of proposing settlements that...more
On February 11, SEC Acting Chair Lee announced that the Commission no longer would permit settlements in enforcement actions to include, or be contingent on the grant of, waivers of statutory disqualifications that flow from...more
The Wall Street Journal reports traders on Reddit’s WallStreetBets forum – the same social medium that helped fuel the GameStop short squeeze – have started bidding up cannabis stocks. Mentions on the forum jumping from near...more
On February 9, Acting SEC Chair Lee announced she was restoring the delegated authority of Enforcement Division senior officials to issue subpoenas to compel document production and sworn testimony without the need of a...more
During the height of the GameStop (NYSE: GME) mania, Slate author Jordan Weissman explained that “[A]t a moment that the markets are being overrun, for better or worse, by posters who’ve basically dedicated themselves to...more
2/10/2021
/ Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Markets ,
GameStop ,
Market Manipulation ,
Market Volatility ,
Reddit ,
Securities and Exchange Commission (SEC) ,
Securities Transactions ,
Short Selling ,
Stock Prices ,
Stock Trades ,
UK
On Thursday, January 28, trading-app broker-dealer Robinhood – a self-styled disrupter democratizing trading – suspended its users’ ability to buy Gamestop stock or options (along with other stocks). After playing a...more
2/5/2021
/ Brokerage Accounts ,
Brokers ,
Class Action ,
Conflicts of Interest ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Markets ,
GameStop ,
Legislative Agendas ,
Robinhood Financial ,
Securities and Exchange Commission (SEC) ,
Stock Trades
On February 1, 2021, the Financial Industry Regulatory Authority (“FINRA”) released its “Report on FINRA’s Risk Monitoring and Examination Activities.” The Report combines two of FINRA’s long-standing reports: (a) the...more
2/3/2021
/ BSA/AML ,
CARES Act ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Financial Markets ,
Industry Examinations ,
Paycheck Protection Program (PPP) ,
Private Placements ,
Regulatory Oversight ,
Social Media ,
Stock Trades ,
Variable Annuities
On the new year’s first day, Congress passed the NDAA over President Trump’s veto and gave the SEC more clear – and longer – disgorgement authority for enforcement actions in the courts....more
1/6/2021
/ Disgorgement ,
Enforcement Actions ,
Enforcement Authority ,
Kokesh v SEC ,
Liu v Securities and Exchange Commission ,
NDAA ,
Presidential Veto ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Statute of Limitations ,
Trump Administration ,
White Collar Crimes