In March of 2022, the SEC proposed rules to include “any market participant that engages in activities as describe in the rules [as] a ‘dealer’ or ‘government securities dealer[.]’”...more
DeFi development carried quietly on throughout 2023, but DeFi protocols also faced significant hurdles. In the US, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) increased their...more
2/12/2024
/ Alternative Trading System (ATS) ,
Anti-Money Laundering ,
CFTC ,
Decentralized Finance (DeFi) ,
Enforcement Authority ,
EU ,
European Securities and Markets Authority (ESMA) ,
Financial Conduct Authority (FCA) ,
Innovation ,
Innovative Technology ,
Know Your Customers ,
Popular ,
Regulation ATS ,
Regulatory Agenda ,
Securities and Exchange Commission (SEC) ,
UK
After years of denials, the SEC has finally approved its first Bitcoin spot ETFs. Reaching this point has involved legal battles, repeated reviews of applications, and much more....more
1/18/2024
/ Bitcoin ,
Cryptocurrency ,
Digital Assets ,
ETFs ,
Exchange-Traded Products ,
Fraud ,
Fraud Prevention ,
Futures ,
Investors ,
Legal History ,
Market Manipulation ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Surveillance
On August 25, 2023, Justice Wendlandt of the Massachusetts Supreme Judicial Court issued a ruling in Robinhood Financial, LLC v. Secretary of the Commonwealth which upheld the legality of the fiduciary duty standard imposed...more
9/8/2023
/ Broker-Dealer ,
Department of Labor (DOL) ,
Dodd-Frank ,
Duty of Care ,
Fiduciary Duty ,
Financial Industry Regulatory Authority (FINRA) ,
MA Supreme Judicial Court ,
NASD ,
Preemption ,
Regulation BI ,
Regulatory History ,
Robinhood Financial ,
Securities and Exchange Commission (SEC)
Ripple Labs (“Ripple”) was one of the first companies to emerge in the crypto space and is now among the first to secure a win against the SEC. In 2020—nearly a decade after Ripple created its digital token, XRP—the SEC sued...more
7/17/2023
/ Crypto Exchanges ,
Decentralized Autonomous Organization (DAO) ,
Economic Realities Test ,
Enforcement Actions ,
Howey ,
Institutional Investors ,
Investment Contract ,
Securities and Exchange Commission (SEC) ,
Securities Tokens ,
Token Sales ,
Totality of Circumstances Test
FINRA’s recent overhaul of its Sanction Guidelines is the largest and most significant in two, if not three, decades. It would be quite the understatement to say that the time had come for FINRA to make a much-needed change...more
Earlier this year, we wrote that the Consumer Financial Protection Bureau (CFPB) was signaling a not-so-quiet transition to aggressive compliance activities in 2022 after an extended period of flexibility during the COVID-19...more
Welcome to Banking Bites! This is our short summary flagging key developments in the UK that we hope will inform your activities in your market. ...more
Key Takeaways:
..On November 10, 2021, the SEC released a Risk Alert which provides observations from recent examinations into advisers’ fee calculations.
..In yet another bleak report, the SEC declared that “most”...more
Key Takeaways:
..FINRA released its most recent Sanctions Guideline, effective immediately, on October 20, 2021. A link to that document can be found here.
..The key change in the 2021 Sanctions Guideline is a new...more
On November 9, 2021, the SEC released a Risk Alert from the Division of Examinations which provides observations from recent examinations into advisers that offer electronic investment advice...more
On October 26, 2021, the SEC released a Risk Alert from the Division of Examinations which provides observations from recent examinations of mutual funds, exchange-traded funds (“ETFs”) and investment advisers, including...more
Key Takeaways:
..On September 28, 2021, FINRA released Regulatory Notice 21-34 which introduces additional new rules aimed at addressing high risk or “recidivist” brokers and the member firms that hire them.
..Under...more
Recap of FINRA Rule 1017(a)(7) -
If you recall from our May 11th alert, effective September 1, 2021, FINRA Rule 1017(a)(7) will require a member firm to file a CMA when a natural person seeks to become an owner, control...more
8/31/2021
/ Applications ,
Bad Actors ,
Banking Regulators ,
Banking Sector ,
Banks ,
Broker-Dealer ,
Compliance ,
Continuation Applications ,
Criminal Records ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
Members ,
New Regulations ,
Prudential Regulation Authority (PRA) ,
Registration Requirement
Key Takeaways:
..With pre-dispute arbitration agreements constantly under attack by PIABA and various federal legislators, FINRA recently issued Regulatory Notice 21-16 to address member firm agreements that extend too...more
Key Takeaways:
..According to FINRA, the number of reported instances involving broker-dealer fraudulent account takeovers (ATO) and related theft is on the rise.
..As set forth in recently released FINRA Regulatory...more
5/27/2021
/ Authentication ,
Best Practices ,
Broker-Dealer ,
Compliance ,
Data Protection ,
Financial Industry Regulatory Authority (FINRA) ,
Fraud ,
Identity Theft ,
Mobile Banking ,
Online Banking ,
Personal Information ,
Popular ,
Regulatory Requirements ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Sensitive Personal Information
Key Takeaways:
..After years of warning firms of the need for enhanced diligence in retaining or hiring brokers with a significant history of misconduct, FINRA has adopted new rules to address such brokers.
..As set...more
5/19/2021
/ Applications ,
Broker-Dealer ,
Brokers ,
Compliance ,
Criminal Records ,
Financial Industry Regulatory Authority (FINRA) ,
New Regulations ,
New Rules ,
Regulatory Oversight ,
Regulatory Requirements ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
As courts around the country navigate how to handle proceedings during the COVID-19 pandemic, arbitral tribunals face the same struggles. The Financial Industry Regulatory Authority (“FINRA”) operates the largest arbitral...more
The Paycheck Protection Program (PPP) has seen extraordinary demand since the passage of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act on March 27, 2020. Prior to the PPP going live just days later on April...more
U.S. Securities firms are on the frontlines of one of the most volatile economic periods in history. With the Dow Jones Industrial Average flirting with the 30,000 mark in February, few firms could have predicted that the...more
KEY TAKEAWAYS -
..The Eleventh Circuit Court of Appeals reversed a lower court decision that denied a special use permit for a telecommunications tower based upon the timeliness of filing suit 50 days after documentation...more
KEY TAKEAWAYS -
..A proposed amendment to FINRA Rule 2111 eliminates the requirement for FINRA to prove the broker exercised “control” over the customer's account to establish excessive trading.
..FINRA acknowledges...more
Key Takeaways -
..While typically there is a relatively small portion of FINRA customer cases that proceed to an award of damages, approximately one out of every four damage awards goes unpaid.
..FINRA has proposed...more
The U.S. Supreme Court held in its 2016 Spokeo decision that for a plaintiff to have standing to assert a claim based on a statutory violation that the plaintiff must have suffered real—and not just legal— harm. Spokeo...more
8/17/2017
/ Article III ,
Background Checks ,
Class Action ,
Credit Reports ,
Fair Credit Reporting Act (FCRA) ,
FCC ,
Hiring & Firing ,
Injury-in-Fact ,
Putative Class Actions ,
Spokeo ,
Spokeo v Robins ,
Standing ,
TCPA