In the context of American retirement policy, the 401(k) plan has rather evolved, for better or for worse, to become a centrepiece. With these changing pressures, it is crucial to examine some of the common pitfalls that occur with 401(k) plans, which can often be overlooked in the fast-paced corporate world. As Part Two of…
As cryptocurrencies continue to gain prominence in the global economy, the discussions around their regulation and their integration into client portfolios are becoming increasingly relevant. This focus is currently centred on Bitcoin, arguably the most recognizable and widely traded cryptocurrency, and investment advisers are particularly attentive to the emerging trends. A significant development in the…
The enforcement arm of United States Securities and Exchange Commission (SEC) has once again shown its interest in the burgeoning world of non-fungible tokens (NFTs), underscoring the commission’s vigor in safeguarding investor interests in this relatively new field. In SEC’s second action involving NFTs, Stoner Cats 2, LLC (SC2) was the target company. The business,…
The North American Securities Administrators Association (NASAA) recently published a significant report which evaluates the implementation of Regulation Best Interest (Reg BI) by broker-dealers. The research, led by the NASAA Broker-Dealer Section Committee, is part of Phase II (B) of its National Examination Initiative. The report has gathered attention not merely for its findings, but…
As of July 26, 2023, the Securities and Exchange Commission (the “SEC”) adopted a final rule to augment cybersecurity disclosures. These new standards, known as the “Final Rules”, were effectively implemented from September 5, 2023. They apply not just to larger entities, but across the board, encompassing smaller reporting companies, emerging growth companies, and foreign…
Recent amendments proposed and swiftly adopted by the Securities and Exchange Commission (SEC) have significant implications for broker-dealers in the financial industry. These changes, put forward on July 29, 2023, and enacted less than a month later on August 23, 2023, largely relate to the SEC’s Rule 15b9-1. As a result, the necessity for broker-dealers…
The U.S. Securities and Exchange Commission (SEC) has recently filed a federal complaint against a prominent national broker-dealer. It alleges the broker-dealer misrepresented the security measures in place for the company’s data held by its affiliates, according to the legal news site JD Supra. JD Supra reported the company is accused of making false statements…
The US Securities and Exchange Commission (SEC) recently introduced final rules concerning the disclosure of cybersecurity information. Upon implementation, these rules will require foreign private issuers to disclose, via Form 6-K, significant cybersecurity incidents. Furthermore, they will have to provide information about their management, strategy, and governance of cybersecurity risks in Form 20-F. According to…
On August 23, 2023, the U.S. Securities and Exchange Commission (SEC) by a 3-2 vote adopted final rules under the Investment Advisers Act of 1940, which modify certain aspects of the rules initially proposed on February 9, 2022, and adopt others in their entirety. In response to the rapidly evolving private fund industry, the modifications…
On August 23, 2023, in a move that the Securities and Exchange Commission (SEC) claims will bring greater “transparency” to the functioning of private funds, the SEC adopted a swath of reforms for private fund managers. This adoption signifies an attempt to mitigate potential conflicts of interest and restrict or necessitate the disclosure of preferential…
The United States Securities and Exchange Commission (SEC) is bringing about significant changes in its regulatory laws, particularly for private funds. This regulation marks the most monumental adjustment for SEC registered firms across the globe since the enactment of the Dodd Frank Act. The SEC’s new private fund reform rule focuses on enhancing measures for…
In a move indicative of the keen eye the Securities and Exchange Commission (SEC) keeps on the non-fungible token (NFT) market, the SEC issued a settled Order against Stoner Cats 2, LLC (“SC2”) on September 13, 2023. This marks its second NFT-related enforcement action. SC2 had offered and sold approximately 10,320 NFTs linked to characters…
Regulatory changes in the works for large hedge fund advisers and private equity fund advisers are set to become effective December 2021. The Securities and Exchange Commission’s (SEC’s) recent amendments to Form PF will introduce new reporting requirements for these entities. According to information from law firm Dechert LLP on JD Supra, large hedge fund…
In an ongoing case concerning attorney-client confidentiality versus regulators’ demand for transparency, a Washington D.C. federal court passed judgement on Thursday, permitting a Covington & Burling LLP client to preserve their anonymity. The anonymous client is appealing an order that instructed Covington & Burling LLP to disclose to the U.S. Securities and Exchange Commission (SEC)…
2023 has marked a dynamic period across the spectrum of employment laws. With multiple federal government agencies enacting extensive measures on a range of issues, it is crucial for corporations and law firms alike to stay updated and compliant. In this context, significant attention has been drawn towards severance agreements which have been chiefly targeted…
The Ontario Securities Commission (OSC) has issued a recent extension to a temporary exemption from the order-execution only (OEO) trailer ban. The Rule 81-509 Extension adds to Ontario Instrument 81-508 Temporary Exemptions, designed to aid Dealer Rebates of Trailing Commissions and Client Transfers (collectively known as “the Rule”). This latest development sees the temporary relief…
A client of the highly reputed law firm Covington & Burling, who potentially faced exposure due to a 2020 cyberattack, is firmly objecting to releasing its identity to the Securities and Exchange Commission (SEC). This action follows a subpoena issued by the SEC demanding disclosure of such identities. The client has reacted to the legal…
The U.S. Securities and Exchange Commission (SEC) has recently focused its attention on whistleblower protections, demonstrating a continued commitment to rigorously enforcing these vital safeguards. Bisecting this landscape, the global commercial real estate services and investment firm CBRE, Inc. found itself in the regulatory crosshairs. In a recently published Order, the SEC charged CBRE for…
Renowned author George RR Martin is among a group of literary figures taking legal action against artificial intelligence (AI) company OpenAI. The group alleges that the company’s algorithms were trained using their copyrighted work. Detailed insights into the suit can be found via this comprehensive Reuters report. In separate news, former Department of Homeland Security…
For many, serving as the dean of a top law school is a formidable challenge. However, for some, it’s just not enough. A good example of this is Dean A. Benjamin Spencer of William & Mary Law School who not only holds this high position but has also recently accepted an “of counsel” role at…
Recent changes to the regulations governing share repurchases by US-listed issuers will require adaptation and careful attention by legal professionals in the coming years. Subject to these alterations, the Securities and Exchange Commission (the “SEC”) has issued final rules that will entail more extensive disclosure requirements for both share repurchase schemes and insider transactions close…
In a recent address before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on September 12, Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), pointed out that the burgeoning market growth coupled with rapidly advancing technology results in a high propensity for securities fraud, thus presenting markets “ripe with…
The Securities and Exchange Commission (SEC) has recently adopted changes to Rule 35d-1, colloquially referred to as the “Names Rule,” under the Investment Company Act of 1940. These changes were made with a specific intent to expand the range of the Names Rule’s applicability. As such, the amendments bring with them updated disclosure and record-keeping…
Recently, the U.S. Securities and Exchange Commission (SEC) has reiterated its position on companies implementing comprehensive release practices as part of employee separation benefit packages. Despite the seeming benefits of release agreements as a risk mitigation strategy, the SEC continues to warn against incorporating language into these release agreements that may discourage former employees from…
The United States Securities and Exchange Commission (SEC) has recently ushered in comprehensive amendments to the regulatory framework that oversees private investment funds, including hedge funds and private equity funds. These amendments, which became effective on August 23, 2023, constitute the most pivotal alterations since the SEC imposed rules under the Dodd-Frank Wall Street Reform…