The Securities and Exchange Commission (the "SEC" or "Commission") has adopted new rules that further define the phrase "part of a regular business" for purposes of determining whether a person is a "dealer" or "government...more
2/28/2024
/ Dealers ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
New Rules ,
Registration Requirement ,
Securities and Exchange Commission (SEC) ,
Securities Dealers ,
Securities Exchange Act ,
Securities Exchange Act of 1934 ,
Securities Regulation ,
Securities Traders ,
Securities Transactions
A recent decision by the First Department of the New York Appellate Division held that the Private Securities Litigation Reform Act's automatic stay of discovery applies in state court, but not during the pendency of an...more
The U.S. Supreme Court has held that 28 U.S.C. § 1782 authorizes discovery to assist only governmental or intergovernmental adjudicative bodies, and not private adjudicative bodies like the international commercial and ad hoc...more
6/15/2022
/ 28 U.S.C. § 1782 ,
AlixPartners LLP v The Fund for Protection of Investors Rights in Foreign States ,
Arbitration ,
Business Disputes ,
Business Litigation ,
Commercial Arbitration ,
Discovery ,
Foreign Jurisdictions ,
Foreign Tribunals ,
International Arbitration ,
International Litigation ,
Popular ,
SCOTUS ,
UNCITRAL ,
ZF Automotive US Inc v Luxshare Ltd
The SEC's Proposal -
On March 28, 2022, the SEC released a rulemaking proposal (the "Proposal") for new rules to clarify the meaning of certain terms in the statutory definitions of "dealer" and "government securities...more
4/5/2022
/ Proposed Rules ,
Registration Statement ,
Regulatory Agenda ,
Regulatory Reform ,
Regulatory Standards ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Securities Dealers ,
Securities Exchange Act ,
Securities Regulation ,
Securities Traders
New York's novel mandatory disclosure requirement is more extensive than what is required by its federal counterpart, mandating the disclosure of a litany of "information and documentation," accompanied by affidavits from a...more
On October 18, 2021, New York Attorney General Letitia James directed two virtual currency lending platforms to immediately cease their unregistered and allegedly unlawful activities in New York and sent letters to three...more
10/29/2021
/ Cryptocurrency ,
Decentralized Finance (DeFi) ,
Enforcement Actions ,
Financial Markets ,
Financial Services Industry ,
Lenders ,
New York ,
Regulatory Violations ,
Securities Transactions ,
Stablecoins ,
State Attorneys General ,
Virtual Currency
Over the last decade, the U.S. Supreme Court has significantly restricted when courts can assert general personal jurisdiction over defendants, i.e., jurisdiction in lawsuits that do not arise out of or relate to the...more
On June 3, 2021, the Court of Appeals clarified the scope of New York General Business Law Section 349, a frequently invoked consumer protection provision. The Court held that Section 349 protects consumers from the deceptive...more
On August 5, 2020, FINRA published Regulatory Notice 20-26, summarizing the results of a survey FINRA conducted of a representative cross-section of member firms, including firms with significant trading volumes or positions...more
Interpreting a key statutory provision for cross-border discovery, on July 8, 2020, the Second Circuit held that parties to a private international arbitration cannot obtain discovery in the United States in aid of that...more
On October 28, 2019, the SEC's Division of Trading and Markets granted no-action relief for a limited period of time to Paxos Trust Company, LLC from registration as a clearing agency under Section 17A(b)(1) of the Securities...more
On October 11, 2019, the heads of the U.S. Commodity Futures Trading Commission ("CFTC"), the U.S. Securities and Exchange Commission ("SEC"), and the Financial Crimes Enforcement Network ("FinCEN"), issued a joint statement...more
10/23/2019
/ AML/CFT ,
Anti-Money Laundering ,
Bank Secrecy Act ,
Broker-Dealer ,
CFTC ,
Cryptocurrency ,
Digital Assets ,
Financial Institutions ,
FinCEN ,
Joint Statements ,
Money Services Business ,
New Guidance ,
Securities and Exchange Commission (SEC) ,
Suspicious Activity Reports (SARs)
The U.S. Court of Appeals for the Second Circuit recently ruled that a New York-based affiliate of a global financial institution could be forced to produce documents for use in foreign proceedings even if those documents...more
This week New York legislatively circumvented one of the few judicial constraints on New York's Martin Act and Executive Law, restoring a six-year statute of limitations for claims under these broad statutes.
On August 25,...more
9/3/2019
/ Credit Suisse ,
Enforcement Authority ,
Financial Institutions ,
Governor Cuomo ,
Martin Act ,
New Legislation ,
Proof of Intent ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
State Attorneys General ,
Statute of Limitations
A recent decision by the New York Commercial Division held that the Private Securities Litigation Reform Act's automatic stay of discovery pending a motion to dismiss applies to Securities Act claims pursued in state court,...more
8/21/2019
/ Automatic Stay ,
Class Action ,
Commercial Court ,
Cyan Inc v Beaver Cty Emps Ret Fund ,
Discovery ,
Jurisdiction ,
Motion to Dismiss ,
NY Supreme Court ,
Private Securities Litigation Reform Act of 1995 ,
PSLRA ,
Securities Act of 1933 ,
Securities Litigation ,
SLUSA ,
Stays
Consistent with New York's status as a financial services and technology hub, the New York State Department of Financial Services (the "NY DFS") announced on July 23, 2019 a new Research and Innovation Division (the...more
8/16/2019
/ Banking Sector ,
BitLicense ,
Cybersecurity ,
Financial Fraud ,
Financial Services Industry ,
FinTech ,
Market Participants ,
NYDFS ,
Popular ,
Regulatory Oversight ,
Virtual Currency
The Situation: In a recently released joint statement ("Statement"), the Staffs of the U.S. Securities and Exchange Commission's ("SEC") Division of Trading and Markets, and the Financial Industry Regulatory Authority...more
8/5/2019
/ Blockchain ,
Broker-Dealer ,
Customer Protection Rule ,
Digital Assets ,
Digital Securities ,
Distributed Ledger Technology (DLT) ,
Financial Industry Regulatory Authority (FINRA) ,
Investor Protection ,
Joint Policy Statements ,
Rule 15c3-3 ,
Securities and Exchange Commission (SEC) ,
SIPA
The Situation: The Staffs of the Divisions of Corporation Finance, Investment Management and Trading and Markets ("Divisions") of the U.S. Securities and Exchange Commission ("SEC") and its Office of the Chief Accountant...more
7/19/2019
/ Banking Sector ,
Broker-Dealer ,
Corporate Counsel ,
Disclosure Requirements ,
Investment ,
Investment Adviser ,
ISDA ,
Joint Statements ,
Libor ,
Market Participants ,
New Guidance ,
Registration Statement ,
Secured Overnight Funding Rate (SOFR) ,
Securities and Exchange Commission (SEC) ,
Working Groups
New York courts will continue to scrutinize the factual basis for personal jurisdiction over non-New York defendants with a fact-intensive inquiry.
In Williams et al., v. Beemiller, Inc. et al., the New York Court of...more
The D.C. Circuit’s decision is significant because certain SEC statutes require a finding of willfulness.
The U.S. Court of Appeals for the District of Columbia Circuit ("D.C. Circuit") is raising the bar on "willful"...more
5/15/2019
/ Anti-Fraud Provisions ,
Conflicts of Interest ,
Disclosure Requirements ,
Form ADV ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Negligence ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Settlement Agreements ,
Statutory Requirements ,
Strict Liability ,
Willful Violations
The New York Department of Financial Services makes good on a promise to fill the void left by the Consumer Financial Protection Bureau.
On April 29, 2019, the New York Department of Financial Services ("DFS") announced...more
The NY courts are focusing on the appropriateness of discovery sought regardless of the technology in which it is contained.
As the New York appellate courts continue to consider the discoverability of social media, on...more
This is a significant decision, given how often non-U.S. clients entrust U.S. law firms with their documents.
On July 10, 2018, the U.S. Court of Appeals for the Second Circuit ruled that law firm Cravath need not divulge...more
The Situation: The Director of the U.S. Securities and Exchange Commission's Division of Corporate Finance, William Hinman, has weighed in on when digital assets will be characterized as securities.
The Result: In...more
6/26/2018
/ Bitcoin ,
Cryptocurrency ,
Digital Assets ,
Ether ,
Goods or Services ,
Howey ,
Initial Coin Offering (ICOs) ,
Investment Adviser ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Token Sales
On February 13, 2018, the New York Court of Appeals ruled unanimously that a user's "private" Facebook messages and photos are subject to disclosure where that information is "reasonably calculated to contain evidence...more