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…
In an unfolding development, the U.S. Securities and Exchange Commission (SEC) finds itself in a legal quandary during the Fifth Circuit oral argument pertaining to protection changes effected in 2022 related to proxy advisor rules, according to a report by JDSupra. In context, in December of the previous year, the Federal District Court for the…
The Securities and Exchange Commission (SEC) recently implemented new cybersecurity disclosure rules for public companies. These rules, adopted in the later part of July 2023, necessitate that publicly traded companies disclose information that will help investors gain an understanding of the procedures these companies use to manage their cybersecurity risks. Moreover, they will also be…
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…