Elad Roisman will end his term as SEC Commissioner in January 2022, according to a statement he released this week. Roisman has served as Commissioner since September 2018 and also served as Acting Chairman in early 2020....more
On December 15, the SEC voted to propose reforms that would significantly affect the regulatory framework governing money market funds (MMFs). According to the SEC, the proposed reforms are designed to improve the resiliency...more
SEC Commission Elad Roisman recently spoke about cybersecurity threats and challenges facing the agency’s registrants, including public companies and financial institutions. One source of challenges (our words, not Roisman’s)...more
The SEC has made a concerted effort in recent years to look more closely at the fixed income markets. But under the new leadership of Chairman Gary Gensler, that spotlight seemed to have dimmed—or so some thought....more
The SEC has been increasingly focused on digital engagement practices (DEPs) and gamification in the marketplace. In August, for example, the SEC solicited public comment on broker-dealer and investment adviser DEPs and...more
The staff of the U.S. Securities and Exchange Commission’s (“SEC”) Division of Examinations (the “Division”) recently published a risk alert spotlighting observations from its “RIC Initiatives” — 200+ examinations of mutual...more
11/2/2021
/ Books & Records ,
Compliance ,
Conflicts of Interest ,
Disclosure Requirements ,
ETFs ,
Internal Controls ,
Investment Adviser ,
Investment Portfolios ,
Investors ,
Mutual Funds ,
Policies and Procedures ,
Portfolio Managers ,
Recordkeeping Requirements ,
Registered Investment Companies (RICs) ,
Risk Alert ,
Securities and Exchange Commission (SEC)
The onset of fall signals a sad realization that summer has ended, but also the joy that “market structure” season has arrived for securities industry participants and policy wonks. Right on cue, in early October, SEC staff...more
The SEC recently solicited public comment on digital engagement practices (DEPs) used by some broker-dealers and investment advisers, including predictive data analytics, differential marketing, and behavioral prompts (such...more
There is little doubt that the U.S. Securities and Exchange Commission is making cybersecurity a top priority. SEC Chair Gary Gensler told a Senate committee on Tuesday, September 14, 2021 that the agency is developing a...more
9/16/2021
/ Broker-Dealer ,
Cyber Attacks ,
Cyber Incident Reporting ,
Cyber Threats ,
Cybersecurity ,
Data Breach ,
Data Breach Plans ,
Data Protection ,
Data Security ,
Enforcement Actions ,
Information Security ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Firms ,
Personally Identifiable Information ,
Phishing Scams ,
Policies and Procedures ,
Regulation S-P ,
Safeguards Rule ,
Sanctions ,
Securities and Exchange Commission (SEC)
Word to the wise: when a regulator kindly reminds you on multiple occasions that you need to comply with its rules, you should probably heed those warnings. On July 26, 2021, the SEC announced settlements with 21 investment...more
On April 16, 2021, the staff of the SEC Division of Trading and Markets reminded broker-dealers borrowing fully paid and excess margin securities from their customers (FPL programs) that they are obligated to comply with...more
On March 15, 2021, ISDA published the ISDA 2021 Security-Based Swaps (SBS) Top-Up Protocol (the SBS Top-Up Protocol). The SBS Top-Up Protocol enables SBS dealers (SBSDs) and other market participants to comply with certain...more
On March 9, 2021, SEC Commissioner Caroline Crenshaw indicated that the SEC should take a tougher stance regarding corporate wrongdoers. In a virtual conference before the Council of Institutional Investors, Crenshaw conveyed...more
On March 11, 2021, the staff of the SEC’s Division of Investment Management issued a statement addressing cross trading among affiliated registered funds and soliciting feedback in this area. The staff issued the statement in...more
A flurry of recent climate-related announcements from the SEC forecasts an upcoming policy battle at the agency. Acting Chair Allison Herren Lee has signaled that “ESG” will clearly be in focus across the SEC’s various...more
The past few weeks have ushered in signs of what’s likely to come from the SEC’s Division of Enforcement under the Biden Administration, including a greater number of investigations and a tougher path to “bad boy” waivers for...more
The SEC, in one of the Commission’s final acts under the leadership of Chair Jay Clayton, approved enforcement action aimed at Ripple Labs, Inc. (“Ripple”) and two of its executives, Brad Garlinghouse and Chris Larsen. The...more
Christmas came early for many in the digital asset community by way of a statement from the U.S. Securities and Exchange Commission (“SEC” or “Commission”) on December 23, 2020 that grants relief in the area of broker...more
12/28/2020
/ Blockchain ,
Broker-Dealer ,
Cryptocurrency ,
Custody ,
Customer Protection Rule ,
Digital Assets ,
Digital Securities ,
Investment Management ,
Popular ,
Public Comment ,
Securities and Exchange Commission (SEC)
U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton announced that December 23, 2020 would be his last day at the helm of the agency.
This leads to the likely outcome that SEC Commissioner Hester Peirce, or...more
In early November 2020, the staff of the U.S. Securities and Exchange Commission (“SEC”) Division of Investment Management (“IM Division”), in consultation with the SEC’s “FinHub” staff, issued a statement in response to a...more
On Monday, November 16, 2020, SEC Chairman Jay Clayton announced his intention to depart from the agency by the end of 2020. News of Clayton’s decision comes as no real surprise, as it is typical for the SEC Chair to hand the...more
On October 7, 2020, the U.S. Securities and Exchange Commission (“SEC”) voted 3-2 to propose a conditional exemption (“Exemption”) to permit natural persons to engage in limited securities activities as “finders” on behalf of...more
10/12/2020
/ Accredited Investors ,
Broker-Dealer ,
Capital Raising ,
Comment Period ,
Disclosure Requirements ,
Exemptions ,
Finders ,
Investment Adviser ,
Investors ,
Private Offerings ,
Public Comment ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Regulation ,
Securities Transactions ,
Unregistered Brokers
This alert provides a brief discussion of the practice of using unregistered “finders” in the context of a private securities offering. We provide background on the process, discuss various risks and considerations, and...more
8/4/2020
/ Broker-Dealer ,
Capital Raising ,
Enforcement Actions ,
Financial Services Industry ,
Finders ,
Investment Management ,
Investors ,
Private Investment Funds ,
Private Offerings ,
Securities and Exchange Commission (SEC) ,
Unregistered Brokers ,
Unregistered Securities
Never one to hold back, especially when it comes to crypto and blockchain matters, SEC Commissioner Peirce recently explained her views on the SEC’s settlement with Telegram and the agency’s approach to regulating the crypto...more
U.S. broker-dealer activity involving digital assets could implicate various FINRA rules in addition to federal and state securities laws and SEC rules. As most readers likely know by now, whether this activity is of...more