State and local governments are increasingly becoming targets of cybersecurity attacks. There has been a notable increase in these cyberattacks with a 95% surge targeting the government sector worldwide in the second half of 2022, compared to the same period in the previous year. This rise in cybersecurity threats has raised concerns from various stakeholders,…
The Securities and Exchange Commission (SEC) has now approved final clawback policy listing requirements for the NYSE and Nasdaq markets, following a series of delays and a threatened accelerated timeline. A comprehensive legal review published on JD Supra provides an in-depth look into these adjustments and their potential implications. The listing standards dictate that these…
In a notable regulatory shift, the Securities and Exchange Commission (SEC) is proposing new rules aimed at supervising the use of Artificial Intelligence(AI) technologies by broker-dealers and investment advisers. According to a report shared by Dechert LLP, these proposed regulations focus on mitigating potential conflicts of interest in interactions between these entities and their investors….
In a significant ruling in the realm of securities law, the United States Court of Appeals for the Second Circuit reaffirmed a judgment from the United States District Court for the Southern District of New York. The court’s decision dismissed allegations brought under state securities laws against certain banks acting as the arrangers (“Defendants” or…
The Securities and Exchange Commission (SEC) has adopted amendments to SEC Rule 15b9-1, a move that substantially enlarges the mandate of the Financial Industry Regulatory Authority (FINRA). Henceforth, virtually every broker-dealer will be required to become a member of FINRA. This marks a significant evolution in the regulatory landscape of the finance industry, impacting a…
Effective October 1st, two leading securities law firms, Sichenzia Ross Ference and Carmel, Milazzo & Feil, will merge operations, rebranding themselves as Sichenzia Ross Ference Carmel. The newly merged firm will host 60 attorneys spread across offices in New York City, Long Island, California, and Florida. The news comes as a full circle moment since…
The U.S. Securities and Exchange Commission (SEC) has adopted new rules applicable to investment advisers to private funds, otherwise known as Private Fund Advisers (PFAs). This development, which took place on August 23, 2023, happened by a party-line vote of 3-2 to address transparency, conflicts of interest and governance mechanisms, simply referred to as the…
In a move observed with great interest by both the corporate legal community and the wider financial sector, the U.S. Securities and Exchange Commission (SEC) recently adopted new rules governing private funds. The sweeping changes come under the Investment Advisers Act of 1940. However, interestingly, these new rules are considerably less restrictive than the version…
The United States Securities and Exchange Commission (SEC) has recently leveraged its muscle against an issuer of non-fungible tokens (NFTs), in what is the entity’s first enforcement action against an NFT enterprise. This action was issued in the form of a settled Order against Impact Theory, LLC on August 28, 2023. JDSupra reported the news,…
The U.S. Securities and Exchange Commission (SEC) recently announced its first enforcement action surrounding non-fungible tokens (NFTs). Spanning its far-reaching powers, the SEC announced on August 28, 2023, it is taking action against Impact Theory, LLC. The company is facing allegations that its public sale of crypto assets, amounting to an estimated $30 million, violated…
In the rapidly evolving FinTech space, stakeholders from large corporations to small startups are required to stay abreast of the latest legal developments and regulatory trends. Often, insights from experienced legal professionals prove invaluable. On October 3, from 2:00 pm to 3:00 pm EDT, a noteworthy webinar is set to take place. Titled “FinTech University:…
Yesterday, the Securities and Exchange Commission (SEC) posted a Nasdaq rule proposal that could modify the requirements related to waivers of the code of conduct under Listing Rules 5610 and IM-5610. The SEC has declared this proposal immediately effective. Under the current Nasdaq listing rules, all listed companies are obligated to adopt a code of…
In response to the economic strain experienced by mortgage holders due to the ongoing pandemic, measures have been enacted by the UK’s Financial Conduct Authority (FCA) in an effort to provide some relief. These developments carry important implications and considerations for organisations involved in securitisation transactions. During the summer, the UK government announced its agreement…
The Managed Funds Association (MFA), alongside five other industry groups, has initiated a legal battle against the U.S. Securities and Exchange Commission (SEC). The coalition contests the SEC’s newly instituted private fund advisers regulation. They assert that the rule extends beyond the scope of the SEC’s sanctioned power and infringes on contracts. According to the…
In a recent analysis by Corporate Counsel, in partnership with ALM Intelligence, it was found that female General Counsel (GC) at Fortune 1000 companies received slightly higher total compensation than their male counterparts in the last fiscal year. The study, which drew on pay disclosures by the U.S. Securities and Exchange Commission, also noted a…
In a split decision on August 25, 2023, the United States Court of Appeals for the Ninth Circuit partially affirmed and partially reversed the dismissal of a putative class-action lawsuit against a renowned producer of graphics processing units along with some of its senior executives. The pertinent ruling came under the Securities Exchange Act, involving…
In a significant development in the legal space, the Securities and Exchange Commission (SEC) adopted the final rules on July 26, 2023, imposing a requirement for the disclosure of material cybersecurity incidents, risk management, strategy, and governance by all public companies. This move by the SEC is expected to increase transparency around cybersecurity practices, while…
In a significant recent development, several private fund industry groups have made an appeal to the United States Court of Appeals for the Fifth Circuit. They are contesting the Securities and Exchange Commission’s adoption of the Private Funds Rule, which took effect on September 1, 2023. Here you’ll find the details on jd supra, the…
Delving into the complexities of securities transactions under the California Corporate Securities Law of 1968, it’s elemental to dissect the tripartite classification scheme it employs. Shedding light on this taxonomy can illuminate the journey to legal compliance for corporations and legal professionals alike. This article dwells on the subtleties of issuer and nonissuer transactions, their…
In a recent development, claims raised under the Securities Act of 1933 have been dismissed, categorized as both time-barred and otherwise lacking sufficient grounds. This dismissal holds significant implications for both corporate entities and legal practitioners alike. According to an article published on JD Supra, the turn of events began with a Supreme Court decision…
As we continue to navigate an ever-evolving landscape of regulatory rules and guidelines, the Securities and Exchange Commission (SEC) continues to play a significant role in shaping the direction of private investment funds. As legal professionals, it is paramount that you stay informed of the changes that directly impact your practice or the firms you…
On August 25, 2023, the United States Securities and Exchange Commission (SEC) issued new Compliance and Disclosure Interpretations (C&DIs) connected to the amendments of Rule 10b5-1 in December 2022 and the related issuer disclosure requirements. Foley Hoag LLP, a renowned law firm focused on an array of legal areas, has released a comprehensive report detailing…
The U.S. Securities and Exchange Commission (SEC) has proposed an amendment to the Exchange Act Rule 15c3-3, frequently referred to as the Customer Protection Rule, on July 12, 2023. If adopted, these proposed amendments will significantly revamp the current duties of certain “carrying broker-dealers”. The changes would entail more frequent computations of their customer and…
The U.S. Securities and Exchange Commission (SEC)’s Division of Corporation Finance recently issued guidance aimed at addressing certain outstanding queries related to the amendments to Rule 10b5-1 and associated disclosure requirements, as outlined in a recent bulletin by Skadden, Arps, Slate, Meagher & Flom LLP. These amendments were instituted by the SEC in December 2022….
In a novel development, the US Securities and Exchange Commission (SEC) has levied penalties against an NFT issuer on charges of selling unregistered securities. The decision marks a crucial shift in the SEC’s approach towards non-fungible tokens (NFTs), typically digital assets linked with unique ownership rights. The matter emerged from the SEC’s investigation involving Impact…