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…
In a notable recent development concerning the application of securities law to cryptocurrencies, United States District Court Judge for the Southern District of New York, Judge Rakoff, rejected key aspects of Ripple ruling in the Terraform cryptocurrency case. On July 31, 2023, Judge Rakoff denied a motion to dismiss the case brought forward by cryptocurrency…
In a decisive move highlighting the ongoing need for stringent supervision in banking relationships with third-party affiliates, the Office of the Comptroller of Currency (OCC) announced on July 25, 2023, a civil money penalty amounting to $15 million against a national bank, you can read the announcement here. The penalties were administered due to the…
On July 21, 2023, the Southern District of New York weighed in on a closely-watched class action lawsuit involving an undisclosed agriculture company and several of its senior officers (the “Individual Defendants”). The court, led by Judge Lewis J. Liman, both granted in part and rejected in part a motion to dismiss the securities class…
On July 26, the Securities and Exchange Commission (SEC) announced a significant change in policy with the adoption of a new rule explicitly addressing cybersecurity risk management, strategy, governance, and incident disclosure. The move reflects increasing concern surrounding cyber threats and a push for proactive measures to safeguard public companies and their stakeholders. This rule…
In a move indicative of the ever-increasing importance of digital security, the Securities and Exchange Commission (SEC) has adopted final rules necessitating public companies to disclose substantial cybersecurity incidents. The rules also require these companies to provide pertinent information regarding their cybersecurity risk management strategy and governance structures. This development applies to firms that are…
In an era when cybersecurity has become a priority concern for most organizations, the Securities and Exchange Commission (SEC) just raised the bar with its most recent announcement. On July 26, the SEC formally unveiled its new rules governing cybersecurity disclosures for public companies following a lengthy comment period. These new regulation changes have set…
Emojis, those colourful and expressive characters we know so well in our personal digital conversations, are no longer a casual messaging element. Increasingly, they are finding their way into legal texts and judgements, complicating the world of corporate law. This phenomenon has even evolved into a new branch of study dubbed ‘Emoji law’, and at…
The Cayman Islands, as an international offshore financial center, have been under the global magnifying glass in the realm of financial regulation. Consideration of recent enforcement actions by local regulatory bodies can offer valuable insights into future expectations for financial services providers (FSPs) worldwide. As highlighted by Lucy Frew and Ian Mason, regulatory partners at…
The Securities and Exchange Commission (SEC) has, by a 3-2 vote, implemented new rules demanding companies to be more transparent about their cybersecurity situations. This change requires companies to provide up to date disclosure on Form 8-K within four business days of identifying a material cybersecurity incident. These new rules could have profound effects on…
Increased attention on cybersecurity has led the U.S. Securities and Exchange Commission (SEC) to adopt final rules regarding cybersecurity disclosure. This concluding step took place on July 26th, which established a roadmap for organizations to comply with subsequent disclosures. Clear instructions as to when compliance was necessary were linked with this publication in the Federal…
Last week saw significant progress in how UK prospectus regulations might change in the near future. The UK Treasury published a momentous draft on statutory instrument and an associated Policy Note suggesting overarching alterations to the UK prospectus regime. Similarly, the UK Financial Conduct Authority sought industry feedback on a series of six Engagement Papers…
In the District of Massachusetts, a significant legal decision transpired when Judge William G. Young granted partially and denied in part a motion to dismiss a putative class action lawsuit. This decision appears to pave a new path for companies and their executives when responding to litigation threats. The case in question was brought against…
On July 25, 2023, the United States Securities and Exchange Commission (SEC), by a slim majority (3-2 vote), embraced final rules revolving around cyber security risk management, strategy, governance, and incident reporting by public companies. The news was reported by JD Supra. These newly adopted rules, known as the Final Rules, serve a twofold purpose….
In a notable decision on July 31, 2023, Judge Jed Rakoff of the Southern District of New York (“SDNY”) has made a decision in favor of the Securities and Exchange Commission (SEC) against Terraform Labs Pte. Ltd. in the case SEC v. Terraform Labs Pte. Ltd. He ruled that trading of cryptocurrency assets to retail…
The Securities and Exchange Commission (SEC) lodged a complaint on 31st July with the U.S. District Court for the Eastern District of New York against three cryptocurrency trading platforms, along with their founder. These entities are alleged to have partaken in unregistered offerings of crypto asset securities. The significant concern relates to the generated funding;…
On July 10, 2023, a notable decision took place in the United States District Court for the District of Minnesota. Chief Judge Patrick J. Schiltz granted a motion to dismiss a putative securities fraud class action lodged against a mattress and bedding company and two of its executive officers. The decision has been stirring interest…
In a recent development, an exchange-traded fund founder (ETF) and his associated investment advice entities have agreed to a $4.4 million settlement with the Securities and Exchange Commission (SEC). The settlement follows charges that the respondents violated the Investment Advisers Act and the Investment Company Act by betraying their duties of care and loyalty to…
The European Securities and Markets Authority (ESMA) recently issued a statement on sustainability disclosures in prospectuses under the EU Prospectus Regulation. Although the statement is primarily directed at EU National Competent Authorities (NCAs), ESMA explicitly states that the content should be considered by issuers and advisors during the preparation of prospectuses containing sustainability-related disclosures. The…
On July 10, 2023, the United States Court of Appeals for the Eleventh Circuit upheld the decision to dismiss a consolidated class action lawsuit against a biomedical company, certain executive members, and its former auditor. This case, titled Carpenters Pension Fund of Ill. v. MiMedx Group, Inc., No. 22-10633, had alleged violations of Section 10(b)…