The U.S. Securities and Exchange Commission (the SEC or the Commission) voted on Friday, April 14, 2023, to reopen the comment period for previously proposed amendments to Rule 3b-16 under the Exchange Act of 1934 (the...more
5/17/2023
/ Broker-Dealer ,
Comment Period ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Proposed Amendments ,
Regulatory Reform ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934 ,
Securities Regulation ,
Sellers ,
Trading Platforms
A new development has emerged in the series of changes to the regulation of finders (i.e., persons that receive compensation for making an introduction leading to a securities transaction) and mergers and acquisition brokers...more
Given this week’s headlines, many emerging companies may be asking themselves: “Why am I holding so much cash?”
The Investment Company Act of 1940 (the 1940 Act) may be to blame.
“But I don’t have any intention of...more
On March 10, 2023, volatility resulting from concerns regarding runs on certain banks triggered trading halts in those banks’ stocks on the New York Stock Exchange (NYSE) and Nasdaq. March 13, 2023, saw additional trading...more
3/15/2023
/ Banking Sector ,
Banks ,
Broker-Dealer ,
Capital Markets ,
Commodities ,
Financial Crisis ,
Financial Institutions ,
Investment ,
Investment Adviser ,
Nasdaq ,
NYSE ,
Securities Exchange Act ,
Short Sales ,
Short Selling ,
Stock Exchange ,
Stocks
On March 1, 2023, the U.S. Department of Justice (DOJ) unsealed an indictment against the CEO of a publicly traded healthcare company (the Executive) relating to charges of an insider trading scheme. The indictment represents...more
3/10/2023
/ 10b5-1 Plans ,
Broker-Dealer ,
Corporate Executives ,
Corporate Governance ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Digital Assets ,
Enforcement Actions ,
Fraud ,
Insider Trading ,
Publicly-Traded Companies ,
Securities and Exchange Commission (SEC)
In today’s asset management landscape, cybersecurity threats are omnipresent, and with constantly evolving tools of attack, actual breaches have become increasingly prevalent. As the complexity, scope, and frequency of cyber...more
3/2/2022
/ Broker-Dealer ,
Comment Period ,
Cybersecurity ,
Disclosure Requirements ,
Investment Adviser ,
Investment Companies ,
Popular ,
Proposed Rules ,
Registered Investment Advisors ,
Reporting Requirements ,
Risk Management ,
Securities and Exchange Commission (SEC)
The staff (“Staff”) of the Division of Trading and Markets of the U.S. Securities and Exchange Commission (SEC) issued a no-action letter (NAL) at the request of the Financial Industry Regulatory Authority (FINRA) on...more
U.S. Developments -
Federal and State Regulatory Developments -
U.S. Department of Homeland Security Issues Challenge for Development of Trusted User Interface for Digital Wallets -
The U.S. Department of Homeland Security...more
9/23/2020
/ Bahamas ,
Blockchain ,
Central Bank Digital Currency (CBDCs) ,
CFTC ,
Cryptoassets ,
Cryptocurrency ,
CSBS ,
Department of Homeland Security (DHS) ,
Digital Wallets ,
Distributed Ledger Technology (DLT) ,
EU ,
FinCEN ,
Gibraltar ,
India ,
Money Laundering ,
New Zealand ,
Nigeria ,
No-Action Relief ,
Popular ,
Reinstatement ,
Securities and Exchange Commission (SEC) ,
Security Token Offering (STOs) ,
SEFs ,
Terrorism Funding ,
Virtual Goods
In our October 2019 update, we discussed how the staff of the U.S. Securities and Exchange Commission (SEC) has remained sharply focused in recent years on the conflicts of interest related to investment advisers’ selection...more
The Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission (the SEC) issued a risk alert (the risk alert) on August 12, 2020, highlighting COVID-19 pandemic-related risks and...more
8/19/2020
/ Broker-Dealer ,
Business Continuity Plans ,
Commodity Futures Modernization Act of 2000 (CFMA) ,
Compliance ,
Coronavirus/COVID-19 ,
Cybersecurity ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
OCIE ,
Popular ,
Remote Sales Transactions ,
Risk Alert ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Sensitive Business Information ,
Supervision
The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) made several regulatory announcements this summer relating to cybersecurity, artificial intelligence (AI), and digital...more
In the wake of severe market volatility resulting from the COVID-19 pandemic, self-regulatory organizations and government agencies continue to provide guidance analyzing and interpreting the effects of the pandemic on market...more
US Developments -
Federal and State Regulatory Developments -
OCC Announces a New Acting Comptroller of the Currency -
On May 21, 2020, current Comptroller of the Currency Joseph M. Otting announced that he is stepping...more
5/29/2020
/ Anti-Money Laundering ,
Bitcoin ,
Blockchain ,
Brazil ,
Counter-Terrorist ,
Digital Currency ,
Financial Action Task Force ,
Financing ,
Iran ,
IRS ,
Popular ,
Tax Returns ,
Virtual Currency
On April 28, 2020, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint against a company and its chief executive officer (“CEO”) for alleged fraud in connection with the company’s stated response to the...more
Since the start of the COVID-19 pandemic in the United States, the U.S. Securities and Exchange Commission (SEC) has increasingly exercised its authority under the Securities Exchange Act of 1934 (the Exchange Act) to suspend...more
The U.S. Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations (OCIE) issued a risk alert (the risk alert) on April 7, 2020, regarding examinations that will focus on broker-dealers’...more
In the midst of the COVID-19 pandemic, the financial markets have experienced significant volatility. During the course of this volatility, exchanges have halted trading multiple times after declines in trading trigged...more
On March 9, 2020, FINRA released Regulatory Notice 20-08 (the “Regulatory Notice”) providing guidance and limited relief to its member broker-dealers during the COVID-19 pandemic. In particular, the Regulatory Notice requests...more
U.S. Developments -
Federal and State Regulatory Developments -
Bill in Hawaii State Senate Addresses Digital Assets Including Authorization for Banks to Serve as Qualified Custodians -
SB 2594 before the Hawaii...more
1/29/2020
/ Amicus Briefs ,
Anti-Fraud Provisions ,
Bitcoin ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Financial Institutions ,
FinTech ,
International Tax Issues ,
Japan ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Uniform Commercial Code (UCC) ,
Unregistered Securities ,
Virtual Currency
Over the past several years, U.S. Securities and Exchange Commission (SEC) enforcement activity has eroded the stability of the once-standard lineup of share classes available to mutual fund investors. Starting with...more
10/24/2019
/ 12b-1 plan ,
Best Practices ,
Broker-Dealer ,
Disclosure Requirements ,
Enforcement Actions ,
Fiduciary Duty ,
Form ADV ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Management ,
Mutual Funds ,
OCIE ,
Proposed Rules ,
Revenue Sharing ,
Securities and Exchange Commission (SEC) ,
Share Classes
The U.S. Securities and Exchange Commission (SEC) held an open meeting on August 21, 2019, (the Open Meeting) and approved two items: (1) guidance regarding the proxy voting responsibilities of investment advisers under the...more
9/3/2019
/ Corporate Governance ,
Environmental Social & Governance (ESG) ,
Fiduciary Duty ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investment Management ,
New Guidance ,
Proxy Advisors ,
Proxy Advisory Firms ,
Proxy Voting Guidelines ,
Regulatory Oversight ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act
The staffs of the Division of Trading and Markets (Division) of the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) (collectively, the “Regulators”) published a joint...more
7/18/2019
/ Books & Records ,
Broker-Dealer ,
Customer Protection Rule ,
Digital Assets ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Services Industry ,
Initial Coin Offering (ICOs) ,
Investment Management ,
Joint Statements ,
Over The Counter Derivatives (OTC) ,
Reporting Requirements ,
Securities and Exchange Commission (SEC) ,
SIPA
U.S. Developments -
U.S. Federal Regulatory Developments -
SEC Staff Holds FinTech Forum to Discuss Blockchain Technology and Digital Assets -
On May 31, 2019, the staff of the U.S. Securities and Exchange Commission...more
6/7/2019
/ Blockchain ,
Cryptocurrency ,
Distributed Ledger Technology (DLT) ,
FinTech ,
Initial Coin Offering (ICOs) ,
Popular ,
Registration Requirement ,
Regulatory Agenda ,
Securities and Exchange Commission (SEC) ,
State Attorneys General ,
Token Sales ,
Utility Tokens ,
Virtual Currency
On Wednesday, December 12, 2018, the D.C. Bar hosted a panel to discuss current developments in the world of crypto. Among the panelists were two senior SEC officers: Jonathan Ingram, Deputy Chief Counsel, Division of...more
1/14/2019
/ CFTC ,
Corporate Issuers ,
Cryptocurrency ,
Digital Assets ,
Division of Corporate Finance ,
Enforcement Actions ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Self-Reporting ,
Token Sales
U.S. Developments -
Congressmen Introduce Legislation to Define “Digital Token” Under the Securities Laws -
On December 20, 2018, two congressmen introduced the “Token Taxonomy Act” (H.R. 7356) before the 115th Congress...more
1/8/2019
/ Anti-Money Laundering ,
Blockchain ,
Consumer Financial Protection Bureau (CFPB) ,
Cryptocurrency ,
Economic Growth Regulatory Relief and Consumer Protection Act ,
FDIC ,
Financial Regulatory Agencies ,
Hong Kong ,
Initial Coin Offering (ICOs) ,
Initial Public Offering (IPO) ,
No-Action Letters ,
Popular ,
Securities and Exchange Commission (SEC) ,
South Korea ,
Supply Chain ,
Token Sales ,
UCLA ,
UK ,
United Arab Emirates (UAE)