The regulation and licensing of professionals across various industries has long been a mitigating factor in preventing malpractice and ensuring quality service. Peculiar, however, is the case when it comes to third party administrators (TPAs). It appears just about anyone with a sign can label themselves a TPA. This unexpected revelation questions the need for…
In a critical update for institutional investment managers filing Form 13F under the Securities Exchange Act of 1934, a new requirement mandates that they will need to file their first Form N-PX as early as August 31, 2024. Engendered by Tannenbaum Helpern Syracuse & Hirschtritt LLP, this revelation reveals a significant progression in the regulatory…
Despite the increase in both popularity and accessibility of cryptocurrency investments in the recent years, there remains a startling lack of clarity about the primary function or use of cryptocurrency. This has led many to draw parallels between cryptocurrency and gold. Both are seen as valuable due to their perceived scarcity, but unlike cryptocurrency, gold…
The rapid technological revolution and the integration of artificial intelligence (AI) in various fields have undeniably made a significant impact on society. The legal sector has not been immune to this transition, as artificial intelligence continues to exert influence on courtrooms, law offices and broker-dealing firms. A prominent example includes the substantial rise of ‘robo-advisors’…
In what is expected to be a seminal moment for securities law, the Securities and Exchange Commission (SEC) is reportedly closing in on a settlement with a nationally recognized statistical rating organization (NRSRO). The essence of the case revolves around the NRSRO’s failure to preserve communications pertaining to credit-ratings that were transmitted via unapproved electronic…
Live Nation faces a securities class action following chaotic pre-sale events for the Taylor Swift Eras Tour. According to a complaint, the firm is alleged to have failed in maintaining a stable online ticket platform which could handle the surge in demand. This led to system crashes and sparked outcry from disappointed Swift fans who…
In a significant development for the legal and corporate sectors, the Securities and Exchange Commission (SEC) has adopted new rules mandating public companies disclose cybersecurity incidents and lay bare their cybersecurity governance policies and practices. The decision was made in late July 2023. For an in-depth look at these alterations, you can find out more…
The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) recently released a joint circular with guidance for dealing with sophisticated professional investors (SPIs). This guidance has proven to be a boon for wealth managers, advisors, and distributors involved in non-retail investment products. These products include interests in private equity…
The US Securities and Exchange Commission (SEC) announced a new final rule requiring public companies to disclose material cybersecurity incidents on Form 8-K within four business days of discovery. The rule, put into effect on July 26, 2023, aims to improve transparency and alert stakeholders of significant cybersecurity threats promptly. For full details of the…
Designing compensation to operationalize compliance continues to be a vital and strategic topic for legal professionals. The shift towards incorporating compensation systems into a company’s compliance program is evident, highlighting the importance of alignment between monetary incentives and adherence to corporate compliance. In a recent podcast episode, compliance expert Tom Fox discusses the perspective of…
The U.S. Securities and Exchange Commission (SEC) has recently implemented definitive rules on cybersecurity, eliciting far reaching implications. These regulations mandate companies to bring to light certain disclosures that have traditionally been kept confidential or unveiled in a highly managed manner. This new set of rules may pave the way for escalated attention from not…
The cryptocurrency landscape is seeing some discordance on its legal front. The courts appear to falter on whether cryptocurrencies should be legally recognized as securities, a question that recently manifested in the judgment of two cases: SEC v. Ripple and SEC v. Terraform. A recent court ruling had given the crypto world a moment of…
In October 2022, the U.S. Securities and Exchange Commission (SEC) adopted Rule 10D-1, a measure that compelled national securities exchanges to establish listing standards. According to this rule, the listing of certain company security classes could be prohibited if the company did not adopt effective policies for the recovery of erroneously paid incentive-based executive compensation,…
The US Securities and Exchange Commission (SEC) has recently adopted new regulations mandating public companies to disclose substantial cybersecurity incidents on Form 8-K within four working days of ascertaining the materiality of such an event. The jurisdiction of the SEC also demands companies to elaborate routinely on their methods for assessing, pinpointing, and managing significant…
Recent developments in the Ripple Labs litigation case have caught the attention of both the cryptocurrency community and the Securities and Exchange Commission (SEC). Just a fortnight ago, we noted the partial win for Ripple when Judge Analisa Torres granted a partial summary judgment in favor of Ripple. The decision addresses the question of whether…
General counsels (GCs) have cited greenwashing, data breaches, and regulatory changes as some of the major issues causing them concern, according to discussions at the ninth annual General Counsel Summit in Sydney on August 7. These issues loom large in their thought processes and strategic planning due to their potentially disruptive impacts on their respective…
The US Securities and Exchange Commission (SEC) has recently adopted final rules regarding the disclosure of cybersecurity incidents, presenting companies with new reporting requirements. Coming into effect on 26 July 2023, these rules are expected to bridge the gap left by previous disclosure guidance from 2011 and 2018, implementing a definitive obligation to disclose cybersecurity…
In the wake of the 2008 financial crisis, the U.S. Securities and Exchange Commission (the “SEC” or “Commission”) formulated a novel oversight instrument called the Form PF (Private Fund). The inception of this mechanism was to primarily scrutinize and assess systemic market risks that could be potentially inflicted by private funds. This strategic move has…
The phrase “without merit” is frequently deployed in response to lawsuits, often as a knee jerk reaction. However, the implications of terming a lawsuit as “without merit” could be more substantial than initially expected, as illustrated in a recent case involving a public company and its CEO. The lawsuit revolved around securities fraud claims which…
In the expanding world of securities, it’s becoming increasingly important for professionals to review and verify statements, as demonstrated in a recent article by Ary Rosenbaum from The Rosenbaum Law Firm P.C. Away from traditional trading, a growing number of individuals, including our legal colleague Mr Rosenbaum, are finding appeal in brokerage accounts which allow…
With rapid advancements in the digital world, cybersecurity has become more crucial than ever. Now, a new reality is taking shape in the corporate domain: the U.S. Securities and Exchange Commission (SEC), on July 26, 2023, has officially mandated the inclusion of cybersecurity disclosures for public companies. What does this imply? By this ruling, public…
On July 26, 2023, the Securities and Exchange Commission (SEC) announced its proposed rules targeted at eliminating potential conflicts of interest among broker-dealers and investment advisors in their interactions with investors through the use of predictive data analytics (PDA) or artificial intelligence (AI). These rules fall under the Securities Exchange Act of 1934 and the…
Professional and corporate law circles are abound with discussions on the recent alterations made by the Securities and Exchange Commission (SEC) to how public companies disclose their management and handling of cybersecurity risks and incidents. These rules, which heavily emphasize the need for transparency and responsibility, reference the standards set in the Securities Exchange Act…
In light of recent developments, the U.S. Securities and Exchange Commission (SEC) has proposed new regulatory guidelines concerning the use of artificial intelligence (AI) by broker-dealers and advisers. The move comes after recent public remarks made by Chair Gensler highlighting the potential risks associated with the rise of AI in the securities industry. In a…
In a recent development, the US District Court for the Southern District of New York has come to a landmark decision that supports the issuers of residential mortgage-backed securities (RMBS) in a prolonged dispute pertaining to the Employee Retirement Income Security Act of 1974, as reported by Morgan Lewis. The ruling weighs heavily on the…