The Financial Stability Oversight Council released its Report on Digital Assets Financial Stability Risks and Regulation on October 3, 2022. The Report was prepared in accord with Section 6 of President Biden’s...more
The Financial Stability Oversight Council released its Report on Digital Assets Financial Stability Risks and Regulation on October 3, 2022. The Report was prepared in accord with Section 6 of President Biden’s...more
Climate change is an often talked about issue. Some firmly believe in it; others do not. Regardless of your view, there is a significant quantum of information available on the subject....more
2/24/2021
/ CFTC ,
Climate Change ,
Disclosure Requirements ,
Environmental Policies ,
Financial Reporting ,
Global Marketplace ,
Hong Kong ,
IFRS ,
IOSCO ,
New Zealand ,
Publicly Accessible Data ,
Securities and Exchange Commission (SEC) ,
UK
Climate change, global warming and similar subjects are the daily grist of the news. The Washington Post reported recently, for example, that huge quantities of ice are melting at an alarming rate....more
2/3/2021
/ Biden Administration ,
CFTC ,
Climate Change ,
Corporate Governance ,
Disclosure Requirements ,
Environmental Social & Governance (ESG) ,
MD&A Statements ,
Popular ,
Publicly-Traded Companies ,
Regulation S-K ,
Securities and Exchange Commission (SEC)
Climate change poses a major risk to the stability of the U.S. financial system and to its ability to sustain the American economy...A major concern for regulators is what we don’t know. This is the message of a report titled...more
The CFTC Division of Enforcement filed its Third Annual Report at the end of November 2019, reviewing the fiscal year. The Report is the typical mixture of goals, statistics, analysis and initiatives. Overall it offers...more
A key focus of SEC enforcement has been the retail investor. To that end the Division formed a special unit to focus on cases tied to those investors. Numerous cases have been brought. That focus may also be at least in part...more
Uneconomic trading in regulated markets is a key focus of market regulators such as the DOJ, SEC, CFTC and FERC. Traders at times, for example, take different positions in select markets which can result in losses in one...more
Crypto currency began with the notion of getting “off the grid” – escaping the regulators and not being regulated. Over time that notion has transmuted. Now platforms trading crypto assets proclaim that the “revolution needs...more
10/18/2019
/ Blockchain ,
CFTC ,
Commodities ,
Cryptocurrency ,
Digital Assets ,
Distributed Ledger Technology (DLT) ,
FinCEN ,
Investment Contract ,
Registration Requirement ,
Regulatory Oversight ,
Securities Act of 1933 ,
Securities Violations ,
Unregistered Securities ,
Virtual Currency
Traditionally the jurisdiction of the CFTC has been tied to the futures markets. Contracts for future delivery were within the reach of the agency and its regulatory regime....more
Virtual currencies have risen from a little known tech curiosity to what some see as the next great investment opportunity in contrast to others who see little but fraud. An alphabet soup of regulators are struggling to apply...more
3/21/2018
/ CFTC ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Enforcement Actions ,
FinCEN ,
Popular ,
Regulatory Oversight ,
Regulatory Standards ,
Securities and Exchange Commission (SEC) ,
Unregistered Securities ,
Virtual Currency
Budget hearings were a focus this week as the Chair of the SEC and Chairman of the CFTC visited Capitol Hill. Both sought substantial increases, requesting more money for technology, inspections and enforcement. While the...more
4/15/2016
/ Books & Records ,
CFTC ,
Class Action ,
Compliance ,
Congressional Committees ,
EB-5 ,
Enforcement Actions ,
False Statements ,
Financial Reporting ,
FinCEN ,
Foreign Corrupt Practices Act (FCPA) ,
Immigrant Investor Program ,
Insider Trading ,
Internal Controls ,
Municipal Bonds ,
Offering Fraud ,
Securities and Exchange Commission (SEC)
The Supreme Court declined to hear Bebo v. SEC, 799 F. 3d 765 (7th Cir. 2015), a suit challenging the SEC’s venue selection. The Court’s order left standing the decision of the circuit court affirming the dismissal of the...more
4/4/2016
/ Accounting Standards ,
Administrative Proceedings ,
Bebo v SEC ,
Blockchain ,
CFTC ,
Enforcement Actions ,
EU ,
European Securities and Markets Authority (ESMA) ,
Mary Jo White ,
Petition for Writ of Certiorari ,
Risk Assessment ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Venue
The SEC filed its first action against a municipal adviser for breach of fiduciary duty based on a provision amended by Dodd-Frank. The agency also continued to file insider trading actions in an administrative forum....more
3/18/2016
/ Administrative Proceedings ,
Auditors ,
Australia ,
Breach of Duty ,
CFTC ,
Conflicts of Interest ,
Dodd-Frank ,
Enforcement Actions ,
Fiduciary Duty ,
Hong Kong ,
Insider Trading ,
Investment Fraud ,
Municipal Advisers ,
Offering Fraud ,
PCAOB ,
Rebates ,
Securities and Exchange Commission (SEC) ,
Supply Chain ,
UK ,
Unregistered Brokers
The Commission filed a series of actions this week which included: three cases based on insider trading; an accounting action against a company and its employees; an audit failure; the unregistered sale of securities; and the...more
2/12/2016
/ Accounting Fraud ,
CFTC ,
Enforcement Actions ,
Financial Conduct Authority (FCA) ,
Fraud ,
Hong Kong ,
Insider Trading ,
Securities and Exchange Commission (SEC) ,
Securities Litigation ,
Security-Based Swaps ,
UK
Open market manipulation cases present difficult issues regarding what constitutes market manipulation. Regulators, such as the SEC, CFTC and FERC, tend to focus on the element of intent. Defendants frequently argue that the...more
During the holiday period the SEC filed three insider trading cases as administrative proceeding. Three actions were brought involving major Wall Street banks; one centered on “parking” allegations involving Morgan Stanley...more
1/8/2016
/ Administrative Proceedings ,
Audits ,
Capital One ,
CFTC ,
Disgorgement ,
Enforcement Actions ,
False Advertising ,
Hong Kong ,
Insider Trading ,
JPMorgan Chase ,
Market Manipulation ,
Offering Fraud ,
Securities and Exchange Commission (SEC)
The SEC prevailed in one court case this week but lost in another. In an investment fund fraud action the agency won at trial. In the First Circuit, however, it lost in an appeal of the long running action against two former...more
Conflicts and investment fund fraud cases were the focus this week. The SEC brought two actions in each category. In addition, a settled insider trading action was filed....more
11/6/2015
/ CFTC ,
Conflicts of Interest ,
Due Diligence ,
Enforcement Actions ,
Hong Kong ,
Insider Trading ,
Investment Funds ,
Securities ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
UK
The SEC’s apparent preference for administrative proceedings as a venue for its enforcement actions continues to draw criticism. H.R. 3798 is now pending in the House of Representatives. The bill is tilted the “Due Process...more
10/30/2015
/ Administrative Authority ,
Administrative Hearings ,
Australia ,
Best Execution ,
Cease and Desist Orders ,
CFTC ,
Conflicts of Interest ,
Due Process ,
Enforcement Actions ,
Failure To Disclose ,
Fraud ,
Hong Kong ,
Insider Trading ,
Investment Funds ,
JOBS Act ,
Mary Jo White ,
Misappropriation ,
Offering Fraud ,
Price Manipulation ,
Rating Agencies ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
The Manhattan U.S. Attorney announced the filing of motions to dismiss the insider trading conviction of Michael Steinberg, formerly a portfolio manager at SAC Capitol, and six others in the wake of the Second Circuit’s...more
10/23/2015
/ Australia ,
CFTC ,
Discounts ,
Enforcement Actions ,
Enforcement Statistics ,
Failure To Disclose ,
Financial Industry Regulatory Authority (FINRA) ,
Forum Selection ,
Insider Trading ,
Misappropriation ,
Motion to Dismiss ,
Offering Fraud ,
Securities and Exchange Commission (SEC)
September 30th Madness dominated this week. The drive for stats was evident as the Commission stacked up cases like cord wood at a pace seldom seen. Twenty-two municipal bond actions were filed in one swoop; an insider...more
10/2/2015
/ Accounting Fraud ,
CFTC ,
Enforcement Actions ,
False Statements ,
Foreign Corrupt Practices Act (FCPA) ,
Insider Trading ,
Investment Funds ,
Misappropriation ,
Municipal Bonds ,
Offering Fraud ,
PCAOB ,
Price Manipulation ,
Pyramid Schemes ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Self-Dealing ,
Whistleblower Awards
The Yates Memo, refocusing DOJ criminal and civil corporate investigations, continues to be the critical topic of discussion this week. The Memo, discussed here, directs that individuals be the focus of the inquiry from the...more
9/18/2015
/ Administrative Law Judge (ALJ) ,
Algorithmic Trading ,
Audits ,
Australia ,
C-Suite Executives ,
CFTC ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Dirks v SEC ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Government Investigations ,
High Frequency Trading ,
Insider Trading ,
Offering Fraud ,
Personal Benefit ,
Price Manipulation ,
Pyramid Schemes ,
Securities and Exchange Commission (SEC) ,
US v Newman ,
Yates Memorandum
In a burst of post-Labor Day energy, the SEC filed a number of significant actions. Those include a series of actions arising out of the audit failure by BDO; actions centered on a financial fraud at an on-line lender; cases...more
9/11/2015
/ Advertising ,
Audits ,
CFTC ,
Consumer Lenders ,
Disclosure Requirements ,
Enforcement Actions ,
Executive Compensation ,
False Advertising ,
Financial Institutions ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Fraud ,
Insider Trading ,
Investment Adviser ,
Investment Funds ,
Misrepresentation ,
Offering Fraud ,
PCAOB ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Unregistered Securities
The SEC issued its final Dodd-Frank pay ratio rules this week by a 3-2 vote. It also issued its final registration rules for Security-Based Swap Dealers and Major Security-Based swap participants.
More questions were...more
8/7/2015
/ Administrative Law Judge (ALJ) ,
Australia ,
CFTC ,
Class Action ,
Custody Rule ,
Enforcement Actions ,
False Statements ,
Final Rules ,
Fraud ,
Investment Fraud ,
Pay Ratio ,
Preliminary Injunctions ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Swap Dealers