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Troutman Pepper Locke

First Circuit Questions Materiality in SEC's Case Against Commonwealth Equity Services

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On April 1, the U.S. Court of Appeals for the First Circuit vacated a summary judgment ruling in favor of the Securities and Exchange Commission (SEC) against Commonwealth Equity Services, LLC, also known as Commonwealth...more

Skadden, Arps, Slate, Meagher & Flom LLP

Investment Management Update - November 2023

...SEC Adopts Amendments to Fund Names Rule - On September 20, 2023, the U.S. Securities and Exchange Commission (SEC) adopted amendments to Rule 35d-1 under the Investment Company Act of 1940 (the Fund Names Rule) as well...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC Staff Raises the Bar for Broker-Dealers Under Regulation Best Interest

On April 20, 2023, the Securities and Exchange Commission (SEC) released a Staff Bulletin (Bulletin) on the care obligations for broker-dealers and investment advisors, pursuant to Regulation Best Interest (Reg BI) and the...more

Seward & Kissel LLP

SEC Settles Charges Against Investment Advisers for Alleged Breaches of Fiduciary Duties

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Who may be interested: Registered Investment Advisers, Mutual Funds, Compliance Officers - Quick Take: The SEC settled charges against two affiliated registered investment advisers, alleging that the advisers failed to...more

McGuireWoods LLP

SEC Issues Risk Alert on Reg BI Deficiencies Identified During Exams

McGuireWoods LLP on

On Jan. 30, 2023, the Securities and Exchange Commission’s Division of Examinations (Division) released a Risk Alert, “Observations from Broker-Dealer Examinations Related to Regulation Best Interest,” in which the Division...more

Oberheiden P.C.

When Is a Trade Considered “Unauthorized”?

Oberheiden P.C. on

Allegations of unauthorized trading claims present significant risks for investment brokers and brokerage firms. In addition to investor arbitration with the Financial Industry Regulatory Authority (FINRA), brokers and...more

Oberheiden P.C.

SEC Exam Priorities for 2023

Oberheiden P.C. on

Find Out What Companies and Investment Firms Need to Know about the SEC’s Exam Priorities for 2023 - Each year, the U.S. Securities and Exchange Commission (SEC) publishes its annual examination priorities. This report...more

Goodwin

FINRA on Reg. BI Compliance: There is “No One-Size Fits All” Approach

Goodwin on

​​​​​​​FINRA recently hosted a conference call with its smaller members covering Regulation Best Interest and Form CRS compliance. FINRA’s resounding message was that there is “no one-size-fits all” approach to Reg. BI...more

Goodwin

BD and IA Conflicts of Interest: SEC Staff Says Don’t Set It (Them) and Forget It (Them)

Goodwin on

​​​​​​​SEC staff recently served up a juicy staff bulletin covering the standards of conduct for broker-dealer and investment adviser conflicts of interest. The staff bulletin includes 13 Q&As categorized into five different...more

ArentFox Schiff

Does the SEC "Best Interest" Regulation Go Far Enough?

ArentFox Schiff on

The US Securities and Exchange Commission (SEC) has adopted a new standard called Regulation Best Interest (Reg BI) that shifts the focus on protecting customers first and foremost. Although the regulation possibly puts...more

Rumberger | Kirk

Are Broker-Dealers Acting in the Best Interests of Their Customers? ‘Not Yet,’ Says FINRA

Rumberger | Kirk on

Noting Deficiencies, FINRA Suggests Best Practices for Reg BI Compliance - During its first-ever review of compliance with Regulation Best Interest (Reg BI), the Financial Industry Regulatory Authority (FINRA) found...more

Goodwin

Regulation Best Interest and Form CRS: Spotlight on FINRA’s 2022 Exam and Risk Monitoring Program Report

Goodwin on

This is the first in a series of alerts discussing topics covered by FINRA in its 2022 Examination and Risk Monitoring Program Report (the “Report”). Here we take a look at Regulation Best Interest (“Reg. BI”) and Form CRS,...more

Carlton Fields

SEC’s Upcoming Report on GameStop and Payment for Order Flow: What to Watch

Carlton Fields on

The Securities and Exchange Commission (SEC) will soon release its report and recommendations regarding the GameStop event last January and related equity market structure issues. In testimony before a Senate committee on...more

Eversheds Sutherland (US) LLP

Digital Assets: The SEC’s roadmap for distribution and exams

In the span of the last five months, the Securities and Exchange Commission (SEC) and its staff have issued two statements, a risk alert and an exam priorities roadmap, all of which address digital assets in full or in part....more

Foley & Lardner LLP

SEC Examination Risk Alert Signals Focus on Digital Asset Securities

Foley & Lardner LLP on

On February 26, 2021, the SEC’s Division of Examinations issued a Risk Alert signaling an exam focus this year on activities of investment advisers, broker-dealers, exchanges, and transfer agents related to Digital Asset...more

Dorsey & Whitney LLP

SEC Enforcement: The Fourth Quarter of 2020

Dorsey & Whitney LLP on

The fourth quarter of calendar year 2020 continued trends evidenced in the third quarter of the year, although far fewer cases were initiated. There were actions brought in a number of key areas such as offering fraud cases,...more

Goodwin

Financial Services Weekly Roundup: The Supreme Court Strikes Back On Single Director Leadership Structures

Goodwin on

In This Issue. The U.S. Supreme Court struck down the single director leadership structure of the Consumer Financial Protection Bureau (CFPB) in a ruling that could have far-reaching implications for the CFPB and other...more

Proskauer Rose LLP

SEC Releases Risk Alert Identifying Common Private Equity and Hedge Fund Compliance Deficiencies

Proskauer Rose LLP on

On June 23rd, the staff of the U.S. Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) issued a new risk alert entitled “Observations from Examinations of Investment Advisers...more

Goodwin

U.S. Broker-Dealers and Investment Advisers: Prepare for Fast Approaching Regulation Best Interest and Form CRS Deadline

Goodwin on

The compliance date of June 30, 2020, is looming for U.S. broker-dealers subject to Regulation Best Interest (Reg. BI) and broker-dealers and investment advisers required to prepare and provide relationship summaries pursuant...more

Lowenstein Sandler LLP

SEC and FINRA Provide Reg. BI and Form CRS Guidance as the Implementation Date Approaches

Lowenstein Sandler LLP on

What You Need To Know: -The implementation date for Reg. BI and Form CRS remains June 30, 2020. -The SEC’s initial compliance review will be focused on “good-faith efforts.” Firms should make good faith efforts to implement...more

Carlton Fields

SEC Pressures Advisers on Undisclosed Conflicts

Carlton Fields on

We are actively looking for circumstances where an adviser is financially conflicted by incentives that could affect investment recommendations to clients. ... And I will tell you: the more we look, the more undisclosed or...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC Enters Election Year Focused on Key Initiatives

As Chairman Jay Clayton’s tenure at the Securities and Exchange Commission (SEC) likely enters its final year — regardless of the outcome of the next presidential election — the SEC remains focused on priorities such as...more

Faegre Drinker Biddle & Reath LLP

Best Interest Standard of Care for Advisors #22

Regulation Best Interest: FINRA Examination Priorities—2020 Examinations for Compliance - The SEC has issued its final Regulation Best Interest (Reg BI), Form CRS Rule, RIA Interpretation and Solely Incidental...more

Groom Law Group, Chartered

New Regulation Best Interest FAQs Address Topics Familiar to DOL Fiduciary Rule Veterans

On January 10, 2020, the staff of the Securities and Exchange Commission (“SEC”) updated its frequently asked questions on Regulation Best Interest (the “FAQs”). ...more

Rumberger | Kirk

Minimizing Liability Under the SEC’s Reg-BI

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Litigation Risks Posed by the SEC’s Regulation Best Interest - Pete Tepley and Meredith Lees highlight litigation risks posed by the SEC’s Regulation Best Interest (Reg-BI), litigation risks that may arise from Reg-BI’s...more

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