The U.S. Securities and Exchange Commission (SEC) took a significant step towards strengthening ESG enforcement with a recent administrative proceeding against a major investment advisor. On September 25, 2023, the SEC detailed the case against the investment advisor for purportedly engaging in ‘greenwashing’ activities. This term defines the practice of creating a false or misleading…
The Securities and Exchange Commission (SEC) is once again flexing its legal muscles in the Non-Fungible Token (NFT) space. The latest entity to attract the organization’s attention is Stoner Cats 2, LLC. The case brings into sharp focus the ongoing legalities concerning NFTs, a topic steadily gaining traction but still riddled with grey areas. According…
In a period characterized by a slowdown in many areas due to seasonal adjustments, the Securities and Exchange Commission (SEC) stood conspicuous, maintaining an accelerated pace in its rulemaking during the third quarter of 2023. This insightful article from JDSupra goes into the depth of variations noted during this period. The SEC in this period…
The Hong Kong Stock Exchange (HKEx) has recently publicized a consultation paper, indicating the onset of a six-week consultation on GEM listing reforms. This initiative represents the effort to embolden its backing for small and medium-sized enterprises (SMEs), as per a report by the renowned law firm, Morgan Lewis. The proposed GEM listing reforms represent…
The U.S. Securities and Exchange Commission (SEC) recently settled charges against DWS Investment Management Americas Inc. (DIMA), a Deutsche Bank investment arm. On September 25, 2023, the SEC announced the enforcement action, pertaining to alleged misstatements by DIMA around its Environmental, Social, and Governance (ESG) investment process. Kramer Levin Naftalis & Frankel LLP reported on…
In a recent development, Corp Fin has released a new set of Compliance & Disclosure Interpretations (CDIs) on pay versus performance matters. The move comes a year after the Securities and Exchange Commission (SEC) formed a rule mandating the disclosure of information that reflects the relationship between executive compensation actually paid by a company and…
The Securities and Exchange Commission (SEC) has recently instituted new rules pertaining to cybersecurity disclosure. These are particularly relevant to Canadian issuers that are reporting issuers with the SEC. This latest regulatory shift marks a critical update for many international corporations and legal firms providing counsel on regulatory compliance. The new rules are found to…
On September 20, 2023, during its first in-person open meeting since the COVID-19 pandemic, the U.S. Securities and Exchange Commission (SEC) adopted amendments to the Names Rule under Section 35(d) of the Investment Company Act of 1940, in a four-to-one vote. The details of the amendments show the SEC also adopted related disclosure and record…
In an aggressive week of enforcement actions by The Securities and Exchange Commission (SEC), Big Law firms and boutiques alike find themselves in a surge of work. Actions have been taken mainly against broker-dealers, corporate insiders and others. Previously in September, the SEC had already announced settlements or charges in more than three dozen matters….
In a recent update on Environmental, Social, and Governance (ESG) compliance, it has been announced that a subsidiary of a prominent German multinational investment bank and financial services company has agreed to pay a total of $25 million in penalties. The company’s willingness to pay the sum addresses two different claims brought against it by…
On September 27, 2023, the Division of Corporation Finance (Corp Fin) within the U.S. Securities and Exchange Commission (SEC) introduced nine new Compliance and Disclosure Interpretations (CDIs). These new interpretations aim to bring clarifications on pay versus performance disclosure requirements. In this same initiative, Corp Fin also revised existing CDI Question 118.08, which addresses the…
In the world of Foreign Corrupt Practices Act (FCPA) prosecutions, 2021 has seen the Securities and Exchange Commission (SEC) keeping steady momentum. Their recent settlement with 3M Corp. for $6.5 million marks their seventh corporate resolution this year. Volume aside, the nature of these cases provides much-needed perspectives on operational best practices and potential pitfall…
The U.S. Securities and Exchange Commission (SEC) recently agreed to a $19 million settlement with a Deutsche Bank subsidiary, following concerns over the bank’s control measures related to its stated environmental, social, and governance (ESG) goals. This occurrence may prove to be a litmus test for future public companies, providing possible insights into the outcomes…
On September 1, 2023, the Managed Funds Association along with a consortium of private equity and hedge fund trade groups filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), contending that the Commission had exceeded its given statutory authority by implementing new advisement rules specially for private funds. This litigation was lodged at…
The US Securities and Exchange Commission (SEC) has begun enforcing its amendments to the Advisers Act Rule 206(4)-1 (the Marketing Rule) less than a year after its implementation deadline, as discussed in a recent report by Bressler, Amery & Ross, P.C. on JD Supra. The initial wave of enforcement actions by the SEC primarily targets…
As legal professionals, it is vital to stay aware of any changes in legislation that may impact our operations. A significant shift is the Securities Exchange Commission’s (SEC) new Cybersecurity Rule which has recently come into effect. The new regulations were implemented in September and apply to reporting public companies. As outlined by Burr &…
The Supreme Court will commence its 2023-24 term on the conventional first Monday in October, with six arguments over five days on topics ranging from federal sentencing laws to voting rights. Live audio of oral arguments will continue to be provided for interested public, indicating the court’s sustained commitment to public accessibility. The new term…
In the wake of potential Congressional appropriations lapse this weekend, U.S Federal law, specifically the Antideficiency Act, has placed constraints on agency business conduct. This occurrence has pushed the Securities and Exchange Commission (SEC) to update its plans for an orderly shutdown, which were last adopted in 2018. According to the latest report, the SEC…
An increasing possibility that looms over the horizon is a government shutdown owing to unresolved issues pertaining to the federal budget. If U.S. congressional leaders do not come to an agreement soon, consequences would be dire for various federal agencies. One such agency that would significantly be impacted is the U.S. Securities and Exchange Commission…
There appears to be a shift in the U.S. Securities and Exchange Commission’s (SEC) enforcement strategy towards information barriers, following a recent complaint it filed. This stance comes as a signal to big corporates and law firms to take heed of the tighter enforcement landscape. In a report filed by JD Supra on September 12,…
As the December deadline fast approaches for the new regulations imposed by the U.S. Securities and Exchange Commission (SEC), businesses, particularly public corporations and certain foreign private companies, will find themselves under increased pressure to solidify their cybersecurity breach protocol. Under these new rules, companies must now assess whether a breach incident meets the materiality…
In recent developments, the Securities and Exchange Commission (SEC) has adopted new rules for venture capital (VC) and other private fund advisers under the Investment Advisers Act of 1940 (Advisers Act). Over a month ago, these rules were introduced and have been on the hot seat of the financial and legal world, given the anticipation…
The U.S. Securities & Exchange Commission (SEC) seems to be setting its sights on Artificial Intelligence (AI). There is an accelerating interest in AI by the federal government due to practical, legal, and policy issues this technology generates, with a focus on the implications of its advancement. As reported by AI: The Washington Report, a…
In light of the potential government shutdown, the Securities and Exchange Commission’s (SEC) Division of Corporation Finance has issued guidelines detailing its operations during such an event. The focus of the notice involves the acceleration of the effectiveness of the registration statement and associated subjects. The Division has emphasized its commitment to accelerating the effectiveness…
The U.S Securities and Exchange Commission (SEC) continues to vigilantly monitor compliance with filing requirements, as exemplified by recent actions related to late Section 13 and 16 filings. From incumbent corporations to new issuers, no entity is immune. This serves as a clear reminder that the SEC frequently scrutinizes late Form 4, 13G and others,…