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
New DOL Rule Enables Consideration of ESG Factors in Investing, Plus the SEC Continues its ESG Enforcement Push in the Absence of Final SEC Rules -
On November 22, the US Department of Labor (DOL) announced a final rule...more
12/14/2022
/ Block Trades ,
Crypto Exchanges ,
Cryptoassets ,
Cybersecurity ,
Data Protection ,
Department of Labor (DOL) ,
Environmental Social & Governance (ESG) ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
Personal Data ,
Private Investment Funds ,
Securities and Exchange Commission (SEC) ,
UK
SEC Advertising Rules – Client Resource Center -
November 4 was the compliance date for the new rule governing advertising and solicitation activities by investment advisers. The new rule substantially revises decades old...more
11/14/2022
/ Advertising ,
Cybersecurity ,
Electronic Communications ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Human Resources Professionals ,
Investment Adviser ,
New York ,
Outsourcing ,
Pay Transparency ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC) ,
WhatsApp
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
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
Every five years, the Department of the Treasury conducts a benchmark survey on the ownership of foreign securities by US residents. Data is collected on Form SHC. Reporting is mandatory for all US resident custodians and US...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
The Commodity Futures Trading Commission issued revised guidance for mandatory chief compliance officer annual compliance reports for futures commission merchants and swap dealers. However, the proposed recommendations are...more
12/10/2019
/ Annual Reports ,
Blockchain ,
CFTC ,
Chief Compliance Officers ,
Compliance ,
Cryptocurrency ,
Enforcement Actions ,
Guidance Update ,
Investment Adviser ,
New Guidance ,
Oral Communications ,
Securities and Exchange Commission (SEC) ,
Swap Dealers
The Commodity Futures Trading Commission and the Securities and Exchange Commission brought separate enforcement actions against the portfolio manager of a hedge fund for mismarking valuations of interest rate swaps in order...more
7/23/2019
/ Anti-Money Laundering ,
Broker-Dealer ,
CFTC ,
Commodity Exchange Act (CEA) ,
Cryptocurrency ,
Cybersecurity ,
Disclosure Requirements ,
Dodd-Frank ,
Enforcement Actions ,
Financial Crimes ,
Financial Industry Regulatory Authority (FINRA) ,
FinCEN ,
Guilty Pleas ,
Interest Rate Swaps ,
Investment Adviser ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
TRACE
Last week, a Canada-based social media company was sued by the Securities and Exchange Commission for purportedly conducting an unregistered securities offering to United States persons in connection with an initial coin...more
6/11/2019
/ ASIC ,
Blockchain ,
Broker-Dealer ,
CFTC ,
Cryptoassets ,
Cryptocurrency ,
Enforcement Actions ,
Fiduciary Duty ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Stability Board ,
Initial Coin Offering (ICOs) ,
Investment Adviser ,
IOSCO ,
New Regulations ,
Proposed Rules ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Token Sales ,
Unregistered Securities ,
Virtual Currency
The watchdog arm of the Securities and Exchange Commission – the Office of Compliance Inspections and Examinations – issued a Risk Alert summarizing breakdowns in compliance by broker-dealers and investment advisers of their...more
4/23/2019
/ Broker-Dealer ,
CFTC ,
Consumer Privacy Rights ,
Cybersecurity ,
Data Protection ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
Multinationals ,
OCIE ,
Personally Identifiable Information ,
Policies and Procedures ,
Regulation S-ID ,
Regulation S-P ,
Risk Alert ,
Securities and Exchange Commission (SEC)
Four related Securities and Exchange Commission-registered investment advisers and/or broker-dealers agreed to pay a collective penalty close to US $100 million to resolve charges related to their purported implementation and...more
BROKER-DEALER -
SEC Disapproves BZX Proposed Rule Change to List Shares of Bitcoin-Based Exchange-Traded Product -
On July 26, the Securities and Exchange Commission disapproved a Bats BZX Exchange proposed rule change...more
7/30/2018
/ Alternative Investment Fund Managers Directive (AIFMD) ,
Bitcoin ,
Broker-Dealer ,
CFTC ,
Corporate Governance ,
EU Passport ,
Investment Adviser ,
Packaged Retail And Insurance-Based Investment Products (PRIIPS) ,
Prudential Regulation Authority (PRA) ,
Securities and Exchange Commission (SEC) ,
UCITS ,
UK Brexit
Last week, a broker-dealer was fined US $1.575 million by the Financial Industry Regulatory Authority and other self-regulatory organizations for not complying with market access requirements for gatekeepers, while the...more
4/16/2018
/ Broker-Dealer ,
CFTC ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Dodd-Frank ,
Enforcement Actions ,
Excessive Fees ,
Financial Industry Regulatory Authority (FINRA) ,
Fines ,
Fraud ,
Initial Coin Offering (ICOs) ,
Investment Adviser ,
OCIE ,
Record Retention ,
Securities and Exchange Commission (SEC) ,
Spoofing