In a significant development for the cryptocurrency market in the United States, Grayscale Investments LLC has gained support from a federal court to commence the nation’s first Bitcoin exchange-traded fund (ETF). This ruling recognizes as transformative for the crypto sphere, as it sets in motion the possibility of easier access to billions of dollars from…
The relationship between a president and a justice can significantly impact the course of law within a country. This fascinating dynamic is evident through the examination of securities law at the Supreme Court, largely shaped by President Franklin Delano Roosevelt and Justice Lewis Powell. When we consider the pivotal work of the Supreme Court, constitutional…
Earlier this July, the U.S. Securities and Exchange Commission (SEC) adopted a new set of significant amendments to Rule 2a-7 under the Investment Company Act of 1940. The decision occurred within a close 3-2 vote. This adoption embodies the most recent in a series of reforms applied on the rules governing money market funds, as…
In a recent ruling, the Supreme Judicial Court of Massachusetts unanimously dismissed the objections raised by Robinhood Financial against the state secretary. The court found that the state secretary holds the authority to impose new fiduciary obligations on broker-dealers implicated in “unethical or dishonest conduct or practices”. The case discussed whether the fiduciary duty rule,…
In this week’s regulatory digest, we focus on a range of enforcement actions, strategic guidance, regulatory rules, and public statements issued by key federal and statewide financial services regulatory bodies. The report, expertly curated by Davis Wright Tremaine LLP, covers a multitude of topics, including securities, commodities, capital markets, among others. This recent publication dives…
The U.S. Securities and Exchange Commission (SEC) under Chair Gary Gensler is issuing regulations at a notably relaxed pace for a new presidential administration, representing its slowest pace in decades. This trend carries the risk of leaving climate disclosure rules, alongside other prioritised ESG reporting items, incomplete.Bloomberg Law reports that Gensler’s SEC has only adopted…
The shareholder proposal process, originally intended to engage a company’s shareholders in matters of corporate governance, has increasingly become a platform for promoting special interests. Despite intended discussions around issues such as dividend policy and board structure, the focus has shifted towards agendas of a more parochial nature. In response to this, the House Financial…
Among the significant developments in the loan markets and loan funds industries, the regulatory and judicial happenings such as the Private Fund Adviser Rule and the Kirschner decision command considerable attention. On a recent Tuesday, a shift in mood was palpable among lenders and borrowers. The concern was about an impending world where syndicated and…
On August 23, 2023, the US Securities and Exchange Commission (SEC) approved a comprehensive set of new rules and amendments in relation to the Investment Advisers Act of 1940. In a closely contested vote of 3-2, the SEC ushered in changes that could prove transformative in the regulation of private fund advisers. These revisions, encased…
In an eagerly awaited decision, the Second Circuit has resolved the debate on whether a syndicated term loan qualifies as a “security”, decisively announcing “no”. On August 24, the Court of Appeals for the Second Circuit established its ruling, upholding the lower court’s holding in Kirschner that leveraged loans are not securities. The Securities and…
The U.S. Securities and Exchange Commission (SEC) has undertaken a unique enforcement action against the world of non-fungible tokens (NFTs). The action is directed at entertainment firm, Impact Theory LLC, who has agreed to pay a settlement of $6 million. This comes in response to the SEC’s claims that the firm’s NFT sales were structured…
In a recent advancement in the regulatory spectrum, the US Securities and Exchange Commission (SEC) has intensified its clampdown on cryptocurrency commodities. The latest focus of this heightened scrutiny is nonfungible tokens (NFTs). The SEC has targeted a Los Angeles-based media and entertainment company, accusing them of offering NFTs, which in reality were unregistered securities….
In a series of transformative decisions for the legal industry, the Securities and Exchange Commission (SEC) enacted a package of rules designed to significantly reshape the obligations for private fund advisers. These rules were adopted on August 23, 2023, following a 3-2 vote, and represent substantial modifications to the Investment Advisers Act of 1940. The…
The U.S. Securities and Exchange Commission (SEC) recently initiated charges against a group of small companies for deficient filings on Form 12b-25, reflecting an apparent return to the controversial “broken windows” approach utilized by the regulatory body during the previous decade. The details of these developments can be seen in this article by Jones Day,…
On August 25, 2023, the U.S. Securities and Exchange Commission (SEC) staff posted five new compliance and disclosure interpretations (C&DIs), signaling a marked shift in the regulatory environment. The developments could potentially have significant implications for corporate insiders who trade in their own companies’ securities, therefore warranting careful attention by legal professionals across the globe….
The Canadian Securities Administrators (“CSA”) and the Canadian Investment Regulatory Organization (“CIRO”), collectively known as the “Regulators,” have recently issued a collaborative notice, Joint CSA and CIRO Staff Notice 31-363 Client Focused Reforms: Review of Registrants’ Conflicts of Interest Practices and Additional Guidance, on August 3, 2023. The announcement was first reported by Stikeman Elliott…
As part of a push to standardize and enhance corporate disclosures, the Securities and Exchange Commission (SEC) has modified its regulations to require public companies to promptly inform the public about material cybersecurity breaches. This regulation, effective as of July 26, 2023, dictates that these disclosures should be made through Form 8-K and detailed data…
In a move that signifies pivotal changes in the financial sector, the Securities and Exchange Commission (SEC) has adopted new rules for private fund advisers. These rules, situated under the Investment Advisers Act of 1940, as amended (Advisers Act), were put into effect on August 23rd. The new rules will enforce significant changes in the…
The legal landscape in July 2023 had been bristling with intriguing cases shuffling through courtrooms. One cannot help but notice the trend of high-profile lawsuits filed over the course of the month, illuminating significant junctures and notable developments in the legal field. One case that stands out is the ‘O’Keefe v. Multicoin Cap. Mgmt. LLC’…
On August 23, 2023, the Securities and Exchange Commission (SEC) brought into effect new rules and amendments (dubbed the “Final Rules”) under the Investment Advisers Act of 1940 (“Advisers Act”). The purpose of these measures is to enhance the regulation of private fund advisers. The Final Rules also bring updates to the existing compliance rule…
The United States Securities and Exchange Commission (SEC) recently announced the unveiling of its new Private Funds Rule. Accordingly, critical amendments have been highlighted to illustrate the progression from the initial proposal. Note however, this serves merely as a high-level overview of the primary changes, and a comprehensive redline remains a must. The full text…
The Maine Office of Securities, an often overlooked but highly significant player in legal enforcement, plays an integral role in ensuring the adherence to securities laws within its jurisdiction. The Office is responsible for not just enforcing local securities laws, but also in licensing broker-dealers, agents, investment advisers, and investment advisers’ representatives according to information…
On a recent Friday afternoon, Corp Fin issued several new Compliance and Disclosure Interpretations (CDIs) regarding Rule 10b5-1 plans. As many may recall, last December, the Securities and Exchange Commission (SEC) adopted new amendments to the rules regarding Rule 10b5-1 plans. The latest CDIs are designed to elaborate on these amendments and provide further guidance….
On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) instituted new rules and modifications under the U.S. Investment Advisers Act of 1940 (Advisers Act). These changes are aimed to bring further scrutiny to the regulation of private fund advisors. These updates are part of a tailored effort to increase transparency and strengthen investor…
On August 4, 2023, a notable settlement was reached in the realm of cryptocurrency. Celebrity singer Austin Mahone entered into an agreement with the U.S. Securities and Exchange Commission (SEC), following allegations of a breach of the anti-touting provision of the Securities Act of 1933. The case commenced in the U.S. District Court for the…