Securities – Page 115 – Legal News Feed

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SEC Alert: Deficiencies in Broker-Dealers’ Anti-Money Laundering and Terrorism Financing Controls

Pieter Gunst3 years ago03 mins

On July 31, 2023, in a noteworthy development in the banking sector and financial institutions, the United States Securities and Exchange Commission (“SEC”) circulated an alert detailing deficiencies in broker-dealers’ (“BD”) implementation of their Anti-Money Laundering (“AML”) and Countering Financing of Terrorism (“CFT”) controls. The directives were brought to light by the Department of Examinations….

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Hong Kong Court Denies Individual Bondholder’s Right to Present Winding-Up Petition

Pieter Gunst3 years ago03 mins

In a significant decision, the Hong Kong court has determined that an individual bondholder under a global note structure cannot present a winding-up petition against a bond issuer. This ruling occurred in the case of Re Leading Holdings Group Limited [20232] HKCFI 1770. It was found that an individual beneficial holder does not possess directly…

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Federal District Court Ruling Reveals Discord Among Judges on Terraform Labs Case

Pieter Gunst3 years ago03 mins

In a recent ruling, US Federal District Court diverged from a precedent set by a fellow judge in the same courthouse. The development represents a noticeable shift in regard to motions to dismiss the Securities and Exchange Commission’s enforcement action against Terraform Labs Pte. Ltd. and Do Kwon. The posturing led to further discussions on…

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SEC Case Against Terraform Labs Moves Forward: Shifting Interpretations of Crypto and Securities Law

Pieter Gunst3 years ago03 mins

In a pivotal moment within the ever-evolving landscape of cryptocurrency and securities law, Judge Jed S. Rakoff of the Southern District of New York issued a significant ruling in a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Terraform Labs Pte. Ltd and its CEO, Do Hyeong Kwon. On July 31, 2023,…

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SEC’s New Cybersecurity Disclosure Rules: Impact on Corporate Legal Professionals and Compliance

Pieter Gunst3 years ago03 mins

Legal professionals in the corporate world should be aware of significant changes to the cybersecurity disclosure rules implemented by the Securities and Exchange Commission (SEC). The organization approved these new requirements on July 26, 2023 and they primarily focus on mandating public companies to make specific disclosures regarding substantial cybersecurity incidents and periodic disclosure of…

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Tenth Circuit Ruling Sets Precedent in Securities Law and Class Action Litigation

Pieter Gunst3 years ago03 mins

On July 13, 2023, the United States Court of Appeals for the Tenth Circuit handed down a key decision, reversing the dismissal of a putative class action against a poultry producer and several of its officers under Section 10(b) of the Securities Exchange Act of 1934. This case, titled Hogan v. Pilgrim’s Pride Corp., was…

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SEC Cybersecurity Rules Effective September 2023: Impact on Legal Professionals and Compliance Strategies

Pieter Gunst3 years ago02 mins

The U.S. Securities and Exchange Commission’s (SEC) Cybersecurity Risk Management Strategy, Governance, and Incident Disclosure Rules have been officially recorded in the Federal Register. As per the official publication, these rules were published on August 4, 2023 and will become effective from September 5, 2023. These regulations provide the guiding principles and norms for cybersecurity…

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Syndicated Term Loans and Securities Laws: Analyzing the Impact of Kirschner v. JP Morgan Chase

Pieter Gunst3 years ago03 mins

In recent times, a significant legal question has been making waves in legal and financial circles, focusing on the intersection of loan syndication and securities laws. At the heart of the debate is a critical question: Are syndicated term loans subject to federal and state securities laws? A decisive case currently pending in the U.S….

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Ripple Labs Finds Relief as XRP Deemed Non-Security in SEC Case: Implications Remain Uncertain

Pieter Gunst3 years ago02 mins

On July 13th, a decision by Judge Analisa Torres of the United States District Court for the Southern District of New York turned heads in legal and cryptocurrency circles (JD Supra). The judge’s order pertained to the SEC v. Ripple Labs, Inc., case, finding that the token XRP, which is offered by Ripple Labs, Inc.,…

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Navigating Reverse Stock Splits: California’s Complex Regulatory Landscape

Pieter Gunst3 years ago03 mins

For both local and multinational corporations, nuanced legal regulations surrounding business practices and stock market behaviors can be challenging to navigate. A prime example of such a regulation surrounds the complexities of reverse stock splits in California, a subject that has garnered renewed attention in the market lately. In a recent blog post, legal commentator…

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Ripple Ruling Not a Tidal Wave: Differing SEC Enforcement Strategies in Digital Asset Cases

Pieter Gunst3 years ago02 mins

Just weeks after Judge Analisa Torres’s novel securities analysis in SEC v. Ripple Labs, a different judge in the Southern District of New York has drawn a distinction between Ripple’s approach and its policy outcomes. The judge’s argument is presented within the context of another highly-public, SEC enforcement action involving digital assets. For readers desiring…

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ISSB Unveils Global Sustainability Disclosure Standards: Canada’s CSSB and CSA Collaborate for Implementation

Pieter Gunst3 years ago03 mins

On June 26, 2023, the International Sustainability Standards Board (“ISSB”) unveiled its first two sustainability disclosure standards, termed the “ISSB Standards”. The two standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (“IFRS S1”) and IFRS S2 Climate-related Disclosures (“IFRS S2”), aim to establish a global framework for corporate sustainability disclosures. Playing a…

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Atlanta Increases Courthouse Security Amid Possible Trump Election Interference Charges

Pieter Gunst3 years ago03 mins

Security has been heightened in Atlanta, most notably around the Fulton County Courthouse, in anticipation of potential charges against former President Donald Trump. As per the announcement made by the Fulton County Sheriff’s Office on Thursday afternoon, the main route encircling the courthouse will be off-limits for general traffic from Monday morning onwards. The augmented…

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SEC Imposes New Cybersecurity Rules for Public Companies: Enhancing Transparency and Investor Protection

Pieter Gunst3 years ago03 mins

In a significant regulatory shift, the Securities and Exchange Commission (“SEC”) has initiated new cybersecurity rules that were instated on July 26, 2023. The regulations are primarily aimed at enabling investors to have a clearer understanding of the cybersecurity risks associated with public companies. One of the key stipulations includes the liability on the part…

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SEC Declines to Weigh In on Syndicated Term Loan Classification in Kirschner Case

Pieter Gunst3 years ago02 mins

The question of whether syndicated term loans are securities continues to be a pivotal legal question, as evidenced in the recent Kirschner v. JP Morgan Chase Bank case. Last month, the Second Circuit Court of Appeals requested an amicus brief from the Securities and Exchange Commission (SEC), but the regulatory body declined to weigh in….

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California Climate Corporate Data Accountability Act: Pushing ESG Disclosure Boundaries

Pieter Gunst3 years ago03 mins

As the legal landscape around environmental concerns continues to evolve, California is poised to establish some of the most stringent Environmental, Social, and Governance (ESG) disclosure requirements in the United States, even overtaking the current proposed rules by the U.S. Securities and Exchange Commission (SEC). This comes with the introduction and subsequent amendment of the…

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FedNow Launches Instant Payments Service, Balancing Fintech Advancements and Regulatory Measures

Pieter Gunst3 years ago03 mins

In an era rapidly marked by fintech evolution and regulatory hurdles, the U.S. Central Bank, the Federal Reserve has launched the FedNow® Instant Payments Service, its new instant payment solution. Revealed in a recent press release, this new payment system is accessible for financial institutions of all sizes, offering the ability to instantly process transactions…

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SEC Adopts Rule 2a-7 Reforms, Signaling Shift in Money Market Fund Regulation

Pieter Gunst3 years ago02 mins

In a remarkable decision by a split vote of 3 to 2, the Securities and Exchange Commission (SEC) approved substantial changes to Rule 2a-7, in addition to other rules pertaining to money market funds under the Investment Company Act of 1940 on July 12, 2023. The SEC development centered on several elements, chief among them…

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SEC Seeks to Address Predictive Data Analytics Conflicts in Broker-Dealer and Investment Adviser Regulations

Pieter Gunst3 years ago03 mins

The U.S. Securities and Exchange Commission (SEC) recently proposed new rules and amendments that may have significant impacts on broker-dealers and investment advisers. The initiative is aimed at addressing potential conflicts of interest that arise from these professionals’ use of predictive data analytics, among other related technologies, in their interactions with investors. From a briefing…

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New SEC Rule on Cybersecurity Intensifies Reporting Obligations for Public Companies

Pieter Gunst3 years ago03 mins

In a marked move, the U.S. Securities and Exchange Commission (SEC) adopted a noteworthy new rule last week, a move that notably increased reporting obligations for public companies. The adopted Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure Rule (the “Rule”) demands, among various other things, the reporting of “cybersecurity incidents” within merely four business…

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SEC Adopts New Rules for Cybersecurity Disclosures: Shifting Focus to Transparency in Corporate America

Pieter Gunst3 years ago03 mins

On July 26, 2023, an open meeting held by the Securities and Exchange Commission (SEC) resulted in the adoption of final rules that aim to enhance and standardize cybersecurity disclosures by public companies. This development indicates a significant shift in regulatory focus towards improving transparency in the cybersecurity realm. According to a report by legal…

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Securities Class Action Proceeds as NY Judge Denies Olo Inc. Dismissal Motion

Pieter Gunst3 years ago02 mins

On July 25, 2023, an important decision took place in the United States District Court for the Southern District of New York. Judge Jed S. Rakoff dismissed a motion to dismiss a putative securities class action, involving an online food ordering and delivery platform, known merely as “the Company”. The allegation stems from violations of…

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SEC’s New Material Cybersecurity Incident Rule Impacts Public Companies and Law Firms

Pieter Gunst3 years ago03 mins

The U.S. Securities and Exchange Commission (SEC) has implemented a significant new policy regarding cybersecurity disclosure requirements, according to a recent report. As of July 26, 2023, all public companies that fall under the reporting obligations and handle data collection or processing are subject to the rule. This rule, named the Cybersecurity Risk Management, Strategy,…

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SEC Adopts Standardized Cybersecurity Disclosures for Public Companies: Legal Implications and Consequences

Pieter Gunst3 years ago03 mins

On July 26, 2023, the Securities and Exchange Commission (SEC) significantly shifted the landscape of cybersecurity accountability for public companies. The SEC convened an open meeting where it was decided to adopt final rules requiring the standardization of cybersecurity disclosures by public companies (JD Supra). These new rules mark a strict departure from the previous…

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SEC Proposes Regulation on AI and Predictive Analytics in Finance: Balancing Innovation and Compliance

Pieter Gunst3 years ago02 mins

On July 26, 2023, the U.S. Security and Exchange Commission (SEC) proposed a new set of rules affecting registered investment advisers and broker-dealers. As discussed in this JD Supra article, the proposed rules aim to handle certain conflicts of interest concerning the use of predictive analytics, artificial intelligence (AI), and other relevant technologies in dealings…