Securities – Page 101 – Legal News Feed

JDSupra

SEC Introduces Rigorous Cybersecurity Disclosure Requirements for Foreign Private Issuers

Pieter Gunst3 years ago02 mins

The US Securities and Exchange Commission (SEC) recently introduced final rules concerning the disclosure of cybersecurity information. Upon implementation, these rules will require foreign private issuers to disclose, via Form 6-K, significant cybersecurity incidents. Furthermore, they will have to provide information about their management, strategy, and governance of cybersecurity risks in Form 20-F. According to…

JDSupra

SEC Adopts New Rules to Boost Transparency and Restrict Private Fund Activities

Pieter Gunst3 years ago03 mins

On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) by a 3-2 vote adopted final rules under the Investment Advisers Act of 1940, which modify certain aspects of the rules initially proposed on February 9, 2022, and adopt others in their entirety. In response to the rapidly evolving private fund industry, the modifications…

JDSupra

SEC Adopts Sweeping Reforms for Private Fund Managers Amid Transparency Push

Pieter Gunst3 years ago03 mins

On August 23, 2023, in a move that the Securities and Exchange Commission (SEC) claims will bring greater “transparency” to the functioning of private funds, the SEC adopted a swath of reforms for private fund managers. This adoption signifies an attempt to mitigate potential conflicts of interest and restrict or necessitate the disclosure of preferential…

JDSupra

SEC’s Private Fund Reform Rule: Global Impact and Stricter Oversight for Investor Protection

Pieter Gunst3 years ago03 mins

The United States Securities and Exchange Commission (SEC) is bringing about significant changes in its regulatory laws, particularly for private funds. This regulation marks the most monumental adjustment for SEC registered firms across the globe since the enactment of the Dodd Frank Act. The SEC’s new private fund reform rule focuses on enhancing measures for…

JDSupra

SEC Enforcement Action on Stoner Cats NFT Sale Signals Regulatory Scrutiny in Evolving Market

Pieter Gunst3 years ago02 mins

In a move indicative of the keen eye the Securities and Exchange Commission (SEC) keeps on the non-fungible token (NFT) market, the SEC issued a settled Order against Stoner Cats 2, LLC (“SC2”) on September 13, 2023. This marks its second NFT-related enforcement action. SC2 had offered and sold approximately 10,320 NFTs linked to characters…

JDSupra

SEC Tightens Reporting Requirements for Large Hedge Fund and Private Equity Advisers

Pieter Gunst3 years ago03 mins

Regulatory changes in the works for large hedge fund advisers and private equity fund advisers are set to become effective December 2021. The Securities and Exchange Commission’s (SEC’s) recent amendments to Form PF will introduce new reporting requirements for these entities. According to information from law firm Dechert LLP on JD Supra, large hedge fund…

Law360

Court Upholds Anonymity for Covington & Burling Client in SEC Cyberattack Disclosure Appeal

Pieter Gunst3 years ago02 mins

In an ongoing case concerning attorney-client confidentiality versus regulators’ demand for transparency, a Washington D.C. federal court passed judgement on Thursday, permitting a Covington & Burling LLP client to preserve their anonymity. The anonymous client is appealing an order that instructed Covington & Burling LLP to disclose to the U.S. Securities and Exchange Commission (SEC)…

JDSupra

Navigating the 2023 Employment Landscape: The Impact of NLRB and SEC Regulations on Severance Agreements

Pieter Gunst3 years ago02 mins

2023 has marked a dynamic period across the spectrum of employment laws. With multiple federal government agencies enacting extensive measures on a range of issues, it is crucial for corporations and law firms alike to stay updated and compliant. In this context, significant attention has been drawn towards severance agreements which have been chiefly targeted…

JDSupra

OSC Grants 18-Month Extension to OEO Trailer Ban Exemption: Impact on Securities Industry and Consumer Protection

Pieter Gunst3 years ago03 mins

The Ontario Securities Commission (OSC) has issued a recent extension to a temporary exemption from the order-execution only (OEO) trailer ban. The Rule 81-509 Extension adds to Ontario Instrument 81-508 Temporary Exemptions, designed to aid Dealer Rebates of Trailing Commissions and Client Transfers (collectively known as “the Rule”). This latest development sees the temporary relief…

Law.com

Covington Client Objects to SEC Subpoena, Escalates Legal Battle Over Cyberattack Exposure

Pieter Gunst3 years ago01 mins

A client of the highly reputed law firm Covington & Burling, who potentially faced exposure due to a 2020 cyberattack, is firmly objecting to releasing its identity to the Securities and Exchange Commission (SEC). This action follows a subpoena issued by the SEC demanding disclosure of such identities. The client has reacted to the legal…

JDSupra

SEC Targets CBRE for Whistleblower Protection Violations, Bolstering Regulatory Enforcement Focus

Pieter Gunst3 years ago03 mins

The U.S. Securities and Exchange Commission (SEC) has recently focused its attention on whistleblower protections, demonstrating a continued commitment to rigorously enforcing these vital safeguards. Bisecting this landscape, the global commercial real estate services and investment firm CBRE, Inc. found itself in the regulatory crosshairs. In a recently published Order, the SEC charged CBRE for…

Above the Law

Top Authors Sue OpenAI for Alleged Copyright Infringement in Algorithm Training

Pieter Gunst3 years ago03 mins

Renowned author George RR Martin is among a group of literary figures taking legal action against artificial intelligence (AI) company OpenAI. The group alleges that the company’s algorithms were trained using their copyrighted work. Detailed insights into the suit can be found via this comprehensive Reuters report. In separate news, former Department of Homeland Security…

Above the Law

Law Dean and Lawyer A. Benjamin Spencer Takes on ‘Of Counsel’ Role at McGuireWoods

Pieter Gunst3 years ago04 mins

For many, serving as the dean of a top law school is a formidable challenge. However, for some, it’s just not enough. A good example of this is Dean A. Benjamin Spencer of William & Mary Law School who not only holds this high position but has also recently accepted an “of counsel” role at…

JDSupra

SEC Tightens Share Repurchase Regulations: Impact on Legal Professionals and Market Transparency

Pieter Gunst3 years ago03 mins

Recent changes to the regulations governing share repurchases by US-listed issuers will require adaptation and careful attention by legal professionals in the coming years. Subject to these alterations, the Securities and Exchange Commission (the “SEC”) has issued final rules that will entail more extensive disclosure requirements for both share repurchase schemes and insider transactions close…

JDSupra

SEC Increases Regulatory Focus on Climate Disclosures, Private Funds, Crypto, and AI to Combat Risks of Fraud

Pieter Gunst3 years ago03 mins

In a recent address before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on September 12, Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), pointed out that the burgeoning market growth coupled with rapidly advancing technology results in a high propensity for securities fraud, thus presenting markets “ripe with…

JDSupra

SEC Adopts Expansive Amendments to 1940 Investment Company Act’s Names Rule

Pieter Gunst3 years ago03 mins

The Securities and Exchange Commission (SEC) has recently adopted changes to Rule 35d-1, colloquially referred to as the “Names Rule,” under the Investment Company Act of 1940. These changes were made with a specific intent to expand the range of the Names Rule’s applicability. As such, the amendments bring with them updated disclosure and record-keeping…

JDSupra

SEC’s Warning on Separation Releases Underscores Balance Between Risk Mitigation and Whistleblower Protections

Pieter Gunst3 years ago03 mins

Recently, the U.S. Securities and Exchange Commission (SEC) has reiterated its position on companies implementing comprehensive release practices as part of employee separation benefit packages. Despite the seeming benefits of release agreements as a risk mitigation strategy, the SEC continues to warn against incorporating language into these release agreements that may discourage former employees from…

JDSupra

SEC Implements Comprehensive Amendments for Private Investment Fund Regulations: Understanding the Shift in Oversight

Pieter Gunst3 years ago02 mins

The United States Securities and Exchange Commission (SEC) has recently ushered in comprehensive amendments to the regulatory framework that oversees private investment funds, including hedge funds and private equity funds. These amendments, which became effective on August 23, 2023, constitute the most pivotal alterations since the SEC imposed rules under the Dodd-Frank Wall Street Reform…

JDSupra

SEC’s Second NFT Enforcement Action Signals Intensifying Cryptocurrency Regulation

Pieter Gunst3 years ago02 mins

In recent news, the Securities and Exchange Commission (SEC) is persisting in its drive against the crypto industry as it delivers its second-ever settlement of a non-fungible token (NFT) enforcement action. The SEC settled with Stoner Cats 2 LLC (SC2), a firm that planned to fund an animated web series about cats who come into…

JDSupra

SEC Crackdown on Investment Firms: Upholding Marketing Rule and Recordkeeping Requirements

Pieter Gunst3 years ago03 mins

In a recent development reported by JD Supra, it has come to light that nine investment advice firms find themselves in legal hot water, facing charges by the Securities and Exchange Commission (SEC). The alleged infractions involve violations of the Advisers Act Rule 206(4)-1, or the Marketing Rule, and recordkeeping requirements relating to advertisement dissemination….

JDSupra

SEC Enforcement Intensifies: The Rising Importance of Rule 21F Compliance in Employment Agreements

Pieter Gunst3 years ago03 mins

In less than a fortnight following its last sanctions against a private employer for purported transgressions of whistleblower protection rules, the Security and Exchange Commission (SEC) has struck again. This time, the SEC is focusing on the phrasing of a separation agreement that it claims contradicts Rule 21F-17(a) of the Exchange Act (“Rule 21F”). Just…

Law.com

William & Mary Law Dean A. Benjamin Spencer Joins McGuireWoods as Of Counsel

Pieter Gunst3 years ago02 mins

A. Benjamin Spencer, the esteemed dean at William & Mary Law School, has recently accepted a position as of counsel at McGuireWoods, an Am Law 100 firm. Spencer plans to balance this new role while remaining in his post within the legal education landscape. In his role as of counsel, Spencer will work for the…

JDSupra

SEC Increases Scrutiny on Non-GAAP Financial Measures in Filings: Potential Consequences for Corporations

Pieter Gunst3 years ago02 mins

On December 13, 2022, the Securities and Exchange Commission (SEC) announced changes with respect to the monitoring of non-GAAP (Generally Accepted Accounting Principles) financial measures in SEC filings. The SEC issued seven new or revised Compliance and Disclosure Interpretations (C&DIs) focusing on these financial measures. You can find further details on this here. This shift…

JDSupra

SEC Charges and Settlements Spotlight NFT Legal Complexities

Pieter Gunst3 years ago04 mins

The world of Non-Fungible Tokens (NFTs) is no stranger to controversy, with the recent announcement by the US Securities and Exchange Commission (SEC) adding more fuel to the fire. The SEC announced charges and settlements against two notable NFT issuers for allegedly conducting illegally unregistered securities offerings in the guise of NFTs, breaching Section 5…

JDSupra

SEC Proposes Crucial EDGAR Security Updates Amid Evolving Digital Landscape

Pieter Gunst3 years ago02 mins

Last week saw the Securities and Exchange Commission (SEC) suggesting modifications to the EDGAR system with a focus on boosting EDGAR security, mostly pertaining to EDGAR filer access and account management. An insight provided by SEC Chair Gary Gensler gave a context to the proposed adjustments. Highlighting how significantly the environment has transformed in the…