As part of a push to standardize and enhance corporate disclosures, the Securities and Exchange Commission (SEC) has modified its regulations to require public companies to promptly inform the public about material cybersecurity breaches. This regulation, effective as of July 26, 2023, dictates that these disclosures should be made through Form 8-K and detailed data…
In a move that signifies pivotal changes in the financial sector, the Securities and Exchange Commission (SEC) has adopted new rules for private fund advisers. These rules, situated under the Investment Advisers Act of 1940, as amended (Advisers Act), were put into effect on August 23rd. The new rules will enforce significant changes in the…
The legal landscape in July 2023 had been bristling with intriguing cases shuffling through courtrooms. One cannot help but notice the trend of high-profile lawsuits filed over the course of the month, illuminating significant junctures and notable developments in the legal field. One case that stands out is the ‘O’Keefe v. Multicoin Cap. Mgmt. LLC’…
On August 23, 2023, the Securities and Exchange Commission (SEC) brought into effect new rules and amendments (dubbed the “Final Rules”) under the Investment Advisers Act of 1940 (“Advisers Act”). The purpose of these measures is to enhance the regulation of private fund advisers. The Final Rules also bring updates to the existing compliance rule…
The United States Securities and Exchange Commission (SEC) recently announced the unveiling of its new Private Funds Rule. Accordingly, critical amendments have been highlighted to illustrate the progression from the initial proposal. Note however, this serves merely as a high-level overview of the primary changes, and a comprehensive redline remains a must. The full text…
The Maine Office of Securities, an often overlooked but highly significant player in legal enforcement, plays an integral role in ensuring the adherence to securities laws within its jurisdiction. The Office is responsible for not just enforcing local securities laws, but also in licensing broker-dealers, agents, investment advisers, and investment advisers’ representatives according to information…
On a recent Friday afternoon, Corp Fin issued several new Compliance and Disclosure Interpretations (CDIs) regarding Rule 10b5-1 plans. As many may recall, last December, the Securities and Exchange Commission (SEC) adopted new amendments to the rules regarding Rule 10b5-1 plans. The latest CDIs are designed to elaborate on these amendments and provide further guidance….
On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) instituted new rules and modifications under the U.S. Investment Advisers Act of 1940 (Advisers Act). These changes are aimed to bring further scrutiny to the regulation of private fund advisors. These updates are part of a tailored effort to increase transparency and strengthen investor…
On August 4, 2023, a notable settlement was reached in the realm of cryptocurrency. Celebrity singer Austin Mahone entered into an agreement with the U.S. Securities and Exchange Commission (SEC), following allegations of a breach of the anti-touting provision of the Securities Act of 1933. The case commenced in the U.S. District Court for the…
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…