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…
For those interested in Securities and Exchange Commission (SEC) insights and enforcement actions, an upcoming hybrid event titled “Navigating the SEC: A 2023 Look Back and Look Forward” should not be missed. The esteemed presenters of the event, Sarah Morgan and Rebecca Fike, both partners at Vinson & Elkins LLP, will offer a deep dive…
On August 21, 2023, the U.S. Securities and Exchange Commission (SEC) decided to charge a registered investment adviser (RIA) for violating the Investment Advisers Act of 1940[1], reinforcing the importance of adhering to legal and ethical standards while managing investments. This accusation includes violations of the recently amended Rule 206(4)-1, also known as the “Marketing…
On August 23, the Securities and Exchange Commission (“SEC”) announced a vote, with a split decision of 3-2, in favor of adopting a series of new and revised regulations under the Investment Advisers Act of 1940 (“Advisers Act”). This act primarily pertains to the regulation of private fund advisers. Commissioners Peirce and Uyeda were the…
In an effort to enhance transparency within the financial realm, the Securities and Exchange Commission (SEC) proposed both new and amended rules under the Investment Advisers Act of 1940 pertaining to private funds, their advisers, and investor transparency earlier this summer. One of the most notable developments in this legislative journey was the adoption of…
A Greek Orthodox priest who also manages a hedge fund has taken a unique approach in his free-speech struggle against the U.S. Securities and Exchange Commission (SEC) related to comments he made regarding a biotech company that he was shorting. Rev. Father Emmanuel Lemelson is being assisted by the New Civil Liberties Alliance in this…
The U.S. Securities and Exchange Commission (SEC) has enacted new regulations obliging registered private fund advisors to disclose quarterly performance to bolster investor transparency. However, sterner provisions initially proposed were omitted from the final version of the rules. SEC Chair Gary Gensler underscores the significance of private funds and their advisors in virtually all sectors…
The U.S. Securities and Exchange Commission (SEC) is pushing for a federal appeals court to examine a question causing strife in the cryptocurrency industry: should its issuers be obligated to register under federal law? This issue of registration is central to the government’s stance against crypto trading and has been viewed as an enforcement tool…
Morrison Foerster, Davis Polk & Wardwell, and Sullivan & Cromwell have been mandated to counsel on the initial public offering (IPO) for SoftBank Group-owned chip designer Arm on Nasdaq Exchange. This IPO is anticipated as the largest of the year. SoftBank’s Arm, a U.K. based chip designer, has filed a preliminary prospectus with the U.S….
Hawaiian Electric Co. has yet to address in court the increasing number of lawsuits filed against it concerning the recent fatal wildfires in Maui. Likely defenses could primarily hinge on questioning the inverse condemnation claims and whether the company’s fallen power lines were indeed a cause of the fire. Partners at Honolulu’s Cox Fricke, Joachim…
There is an increasing trend among Japanese startups to opt for Nasdaq listing over domestic exchanges with the aim of achieving a higher valuation from a tech-savvy investor base, whilst also facing less stringent listing standards. This trend is generating a consistent flow of work for U.S.-based law firms such as Greenberg Traurig. Greenberg Traurig,…
In a notable development, Chief Judge Laura Taylor Swain of the Southern District of New York ruled against former Allianz Global Investors executive, Gregoire Tournant’s motion to dismiss his securities fraud indictment. Concluding that Tournant renounced attorney-client privilege with his erstwhile legal counsel, Sullivan & Cromwell, she unsealed a 40-page opinion to dismiss his request….
In an ongoing spate of regulatory action, both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have recently settled their investigations into off-channel communications at several leading financial institutions. Details on the case can be found here. This move can be seen as part of an extended regulatory push to…
In a remarkable turn of events, the Securities and Exchange Commission (SEC) faced criticism for its decision not to regulate a particular financial product, as it failed to adequately explain its reasons for this action. This incident was reported by JD Supra, a key news source for legal professionals worldwide. This lack of explanation by…
On June 8, 2023, the Division of Examinations (referred to as “the Division”) of the U.S. Securities and Exchange Commission (or “SEC”) issued its second Risk Alert (known as the “2023 Risk Alert”) on the amended Rule 206(4)-1 (or the “Marketing Rule”) under the Investment Advisers Act of 1940. The amended Marketing Rule, introduced by…
In a ruling that could send shockwaves through the financial sector, several major financial institutions and their affiliates were recently hit with fines totaling $549 million. This decision was handed down by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and related to the parties’ failure to uphold proper…
HM Treasury has initiated a consultation to set up a financial market infrastructure sandbox, which is referred to as the Digital Securities Sandbox. This move is in alignment with new authority conferred by the U.K. Financial Services and Markets Act 2023. The new regulation gives HM Treasury the power to establish individual FMI sandboxes. The…
On August 8, 2023, the United States Securities and Exchange Commission (SEC), announced that 11 Wall Street firms have agreed to settle charges for recordkeeping violations. According to the Commission, these institutions, composed of ten broker-dealer firms and one dually-registered investment adviser, did not adequately maintain and preserve electronic communications related to their businesses. The…
Regulatory bodies in the United States, specifically the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), continue to demonstrate tenacious enforcement when it comes to off-channel communications used by employees of registered entities. Such behavior emphasizes how these bodies prioritize maintaining a strong market environment and ensuring law compliance by financial…
The U.S. Securities and Exchange Commission (SEC) has recently taken legal action against a former hedge fund manager, alleging defraudulence of investors in a scheme that reportedly took in excess of $5M. The case bears the hallmarks of a ‘Ponzi-like’ structure. Currently, the scale of the fallout, the details of the purported victims, as well…
On July 26, the Securities and Exchange Commission (SEC) issued new guidelines emphasizing cybersecurity disclosure requirements for public corporations. This augmented focus on cybersecurity resonates with the growing concern in corporate America about the potential impact of cyber threats on large business establishments and their clients. The new regulations mandated by the SEC can essentially…
The United Kingdom’s HM Treasury recently published a near-final draft statutory instrument and accompanying policy note, delineating proposed reforms to the nation’s securitization regime. These publications have sparked extensive dialogue within the domestic legal sphere, calling for a constructive response from legal professionals and key stakeholders. Previously, securitization has proven to be a lucrative strategy,…
In a closely observed development, the United States Supreme Court recently granted Certiorari, indicating it will consider the particularly significant issue of when federal agencies need to provide for the right to a jury trial in civil enforcement actions. If decided favorably for defendants, the ruling has the potential to alter several enforcement mechanisms employed…
The Ontario Securities Commission (OSC) recently proclaimed a proposal, dubbed as OSC Rule 52-503 Exemption from Disclosure of a Specified Financial Measure (the “Rule”), that may have significant implications for “federal financial institution” reporting issuers. If approved by the Minister of Finance, this Rule will provide a notable exemption in Ontario from National Instrument 52-112…
In a remarkable turn of events, non-fungible tokens (NFTs) have been utilized for service of process by a federal district court. A Florida-based judge ordered a default judgment of $2.2 million against a defendant, for whom the service of process was previously authorized via an NFT, according to a recent report by BakerHostetler. While this…