Last Wednesday, the Securities and Exchange Commission (SEC) approved new rules and amendments under the Investment Advisers Act of 1940 that majorly impact investment advisers. The decision, which was settled in a 3-2 vote, signifies a milestone in the SEC’s regulation of investment advisers, particularly those working with private equity funds and hedge funds. The…
On July 26, 2023, the Securities and Exchange Commission (the “SEC“) unveiled new regulations mandating public companies and foreign private issuers to divulge key cybersecurity incidents within four business days from when the incident was first detected. Moreover, these entities will be required by law to share specifics regarding their approaches to managing cybersecurity risks,…
On August 23, 2023, the US Securities and Exchange Commission (SEC) made significant advances in the regulatory landscape with a 3 – 2 vote, approving the adoption of new rules applicable to advisers of private funds. Referred to officially as the Private Fund Adviser Rules, these modifications are projected to require substantial revisions to existing…
In a significant decision on August 24, the U.S. Court of Appeals for the Second Circuit upheld a district court’s ruling, asserting that syndicated loans do not count as securities. The lawsuit in question involved a near $1.8 billion syndicated loan by a national bank to a drug testing company. The legal dispute arose following…
In a recent development, a multinational bank, which remains unnamed, has agreed to pay $1.435 billion. This settlement is to resolve a Department of Justice (DOJ) action that alleges the bank had defrauded investors. This alleged fraud is connected to the sale of Residential Mortgage-Backed Securities (RMBSs) in the period leading up to the 2008…
On August 23, 2023, in a split 3-2 vote, the Securities and Exchange Commission (the “SEC”) adopted new final rules and amendments to established rules in relation to the regulation of private fund advisers (the “Final Rules”). This action, which was applied under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), signals…
The U.S. Securities and Exchange Commission (SEC) has recently brought charges against a New York-based fintech investment advisor for breaching advertising rules. These charges come as the first violation of the SEC’s newly-amended marketing rule, shedding light on the regulatory body’s increasing scrutiny on financial technology firms and their advertising practices. According to the SEC,…
The U.S. Securities and Exchange Commission (SEC) has announced a considerable fee increase for issuers registering their securities. The change will be enforced in fiscal 2024 which commences on October 1, 2023. According to the announcement, fee rates for registration of securities and specific other transactions will escalate to $147.60 per million dollars, a significant…
We start the year off with news already influencing corporate America. 2022 witnessed a challenging economic setting with soaring interest rates and an uncertain forecast that rocked the nation. The effects were particularly prominent within the tech industry, where falling stock prices landed startups and tech giants alike into a cycle of retrenchment and widespread…
In a noteworthy development, Mayer Brown’s bankruptcy team successfully steered GWG Holdings through a 16-month Chapter 11 process, marking the most significant debtor-side restructuring in the firm’s history. The sensitive case involved the entire board resignation of the company and an investigation into GWG’s downfall by the Securities and Exchange Committee. More details on this…
Tokyo’s Yamazaki Marunouchi Law Office has lodged a claim against Credit Suisse Securities Japan Ltd in the Tokyo District Court. Acting on behalf of an undisclosed Japanese company and its founder, the law firm is seeking close to $49 million in damages over bonds linked to a now insolvent Greensill Capital-run fund, according to details…
Instacart, America’s largest online grocery delivery platform, recently revealed its plans to go public. The move came amidst a rapid deceleration in the growth of its primary business, pushing the company to look for novel avenues to generate revenue. According to the data supplied in its filing with the US Securities and Exchange Commission, there…
In a definitive ruling settling the question of whether a term loan is a security, the Second Circuit Court of Appeals affirmed the District Court’s decision in the Kirschner Case that a term loan is not a security. Handed down in August 2023, this decision provides substantial legal direction for corporations and financial professionals around…
On August 23, 2023, the Securities and Exchange Commission (the SEC) implemented new rules and rule amendments for private fund advisers. This move, under the Investment Advisers Act of 1940, ones seen as a significant step towards strengthening the regulation of private fund advisers. It is worth highlighting that the decision by the SEC was…
The Securities and Exchange Commission (SEC) has finalized the ‘Private Fund Adviser Rule’ (PFA), a regulation that had been under the spotlight ever since it was proposed on February 9, 2022. The proposal became the subject of extensive consultations with the General Partner and Limited Partner communities over approximately 16 months as the SEC aimed…
In February 2022, the Securities and Exchange Commission (SEC or the Commission) introduced a sweeping set of regulatory requirements that fall under the amended Investment Advisers Act of 1940. This Act applies particularly to investment advisers who offer advisory services to private funds. You can find more details about the proposal here. However, it’s worth…
The Securities and Exchange Commission (SEC) has passed new regulations this week that will affect private equity firms and hedge funds, but the impact may be less severe than initially feared. While initially a source of some anxiety, the rules have been reportedly watered down from the original proposals, prompting a collective sigh of relief…
In what has been a significant awaited judgment, the US Court of Appeals for the Second Circuit affirmed a 2020 ruling by the US District Court for the Southern District of New York that widely syndicated term loans are not considered “securities”. This decision could have brought forth a new regulatory framework for syndicated lending…
In a recent development, the US Securities and Exchange Commission (SEC) has settled charges with a registered transfer agent for failing to adequately locate “lost securityholders”, or investors that the company no longer had current contact or location information for. The settlement resolves allegations that the transfer agent failed to adequately fulfill its obligations to…
In a move that has been seven years in the making, the U.S. Securities and Exchange Commission (“SEC”) has finally given approval to the Financial Industry Regulatory Authority (“FINRA”)’s amendments to Rule 4210. This approval, granted on July 27, 2023, marks the conclusion of a series of modifications to the requirements governing Covered Agency Transactions….
The U.S. Securities and Exchange Commission (SEC) has served Wells Notices to the CFO and CISO of SolarWinds, the technology company embroiled in controversy following a significant cyber breach in 2020. Commonly known as the “SolarWinds breach,” this incident has largely been identified as one of the most complicated cyberattacks ever recorded. This move by…
The U.S. Securities and Exchange Commission (SEC) has recently finalized a set of highly controversial rules concerning private fund advisers. The move has stirred a considerable amount of discussion and scrutiny in the legal sector, particularly among professionals with a concentration in investment services. Details of the finalized rules and their potential implications were initially…
On August 21, 2023, the U.S. Securities and Exchange Commission (SEC) made an announcement that sent ripples through the financial technology industry. For the first time, the commission has executed its enforcement authority under the New Marketing Rule against a registered investment adviser. This decisive action marks a new chapter in the SEC’s regulatory reach,…
On August 23, 2023, the Securities and Exchange Commission (SEC) made significant changes to the SEC Rule 15b9-1 that now obligates almost all broker-dealers to register as members of the Financial Industry Regulatory Authority (FINRA). Prior to these amendments, numerous broker-dealers had been exempted from FINRA membership. The adjustments, however, have now narrowed that exclusionary…
On August 23, 2023, the Securities and Exchange Commission (SEC) enacted a final rule that implements a series of sweeping changes to the regulation of the private funds industry, as noted by the Law and Regulatory news platform, JD Supra. With the backing by a 3-2 vote, this decisive move hints at a gradual shift…