In a stinging rebuke of its attempted cybersecurity-related enforcement against a public company, a federal judge recently dismissed most of the charges that the U.S. Securities and Exchange Commission (SEC) had filed against...more
8/15/2024
/ Chief Information Security Officer (CISO) ,
Cybersecurity ,
Enforcement ,
Enforcement Authority ,
Fraud ,
Internal Controls ,
New Rules ,
Publicly-Traded Companies ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934 ,
SolarWinds
Since the release of ChatGPT 3.5 in November 2022, public interest in artificial intelligence (AI) has surged in a classic example of a hype cycle. As with past technological breakthroughs, companies may be tempted to...more
8/6/2024
/ Advertising ,
Anti-Fraud Provisions ,
Artificial Intelligence ,
Civil Monetary Penalty ,
Corporate Counsel ,
Enforcement Actions ,
False Statements ,
Investment Advisers Act of 1940 ,
Investors ,
Machine Learning ,
Misleading Statements ,
Public Statements ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Technology Sector ,
Training
On June 28, 2024, the U.S. Supreme Court issued its decision in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce[1], overruling the Chevron doctrine. This holding overturns the decades-long...more
7/5/2024
/ Administrative Procedure Act ,
Chevron Deference ,
Chevron v NRDC ,
Government Agencies ,
Judicial Authority ,
Loper Bright Enterprises v Raimondo ,
Regulatory Agenda ,
Regulatory Authority ,
SCOTUS ,
SEC v Jarkesy ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Statutory Interpretation
With the growing use of artificial intelligence (AI) in financial markets, broker-dealers and investment advisers need to pay attention to the risks posed by AI on firms’ compliance with federal securities laws. While machine...more
11/14/2023
/ Algorithms ,
Artificial Intelligence ,
Broker-Dealer ,
Compliance ,
Conflicts of Interest ,
Data Privacy ,
Discrimination ,
Financial Markets ,
Fraud ,
Investment Adviser ,
Machine Learning ,
Market Manipulation ,
Popular ,
Securities and Exchange Commission (SEC) ,
Software
On July 26, 2023, the U.S. Securities Exchange Commission (“SEC”) adopted final rules regarding cybersecurity risk management, strategy, governance, and incident reporting by public companies. The final rules require...more
8/4/2023
/ Annual Reports ,
Customer Proprietary Network Information (CPNI) ,
Cybersecurity ,
Disclosure Requirements ,
FBI ,
Foreign Private Issuers ,
Form 8-K ,
Incident Response Plans ,
New Rules ,
Regulation S-K ,
Regulation S-X ,
Risk Management ,
Secret Service ,
Securities and Exchange Commission (SEC)
During the past few months, the U.S. Securities and Exchange Commission (“SEC”) Division of Enforcement has continued to police the areas of the cannabis industry that roll over into the SEC’s jurisdiction.
In March, the...more
7/18/2023
/ Anti-Retaliation Provisions ,
Cannabis-Related Businesses (CRBs) ,
Enforcement ,
Injunctions ,
Investors ,
Marijuana Cultivation ,
Ponzi Scheme ,
Restraining Orders ,
Risk Assessment ,
Securities and Exchange Commission (SEC) ,
Whistleblowers
On December 5, 2022, the SEC filed a settled action against investment advisory firm Two Point Capital Management Inc. (the Firm) and its chief executive officer, who also served as the Firm’s chief compliance officer until...more
On December 14, 2022, the U.S. Securities and Exchange Commission (“SEC”) adopted final rules (1) adding new conditions applicable to Rule 10b5-1 trading plans, (2) requiring disclosure of insider trading policies and...more
12/20/2022
/ 10b5-1 Plans ,
Cooling-Off Rule ,
Disclosure Requirements ,
Disparate Treatment ,
Equity Securities ,
Final Rules ,
Gifts ,
Good Faith ,
Insider Trading ,
Policies and Procedures ,
Securities and Exchange Commission (SEC) ,
Smaller Reporting Companies ,
Trading Plans
On October 24, 2022, the Security & Exchange Commission (SEC) issued settled orders against Cronos Group, Inc. (Cronos), a Canadian cannabis company, and its former Chief Commercial Officer. Cronos cultivates, manufactures,...more
On June 30, 2022, the SEC filed a settled action against Hamilton Investment Counsel, LLC (the “Firm”) and its chief compliance officer (“HIC CCO”). Notably, the SEC charged the HIC CCO with willfully aiding and abetting the...more
In U.S. Securities and Exchange Commission v. Ripple Labs Inc., a discovery battle over claims of privilege by the staff of the SEC’s Division of Enforcement in combination with a recent U.S. District Court for the Southern...more