A broker-dealer failed to reasonably supervise its registered representatives when making recommendations of certain variable rate structured products (“VRSPs”), including fixed to floating rate steepeners and other variable rate principal-at-risk structured products, to 20 investors. The broker-dealer violated FINRA Rules 2111 (Suitability) and 3110 (Supervision). The behavior in question occurred prior to the adoption of
SEC Testifies Before Congress & Updates from the Division of Corporation Finance
The Chair and Commissioners of the Securities and Exchange Commission testified before the US House of Representatives Committee on Financial Services on September 24, 2024. The SEC’s testimony provided updates on market conditions and highlighted key developments in the Commission’s rulemaking activities over the past year.
The SEC noted that the US capital markets makes
SEC Small Business Forum
The SEC recently published its report on the 2024 Government-Business Forum on Small Business Capital Formation. The Forum addresses a range of issues affecting small businesses, including smaller public companies. The SEC’s Office of the Advocate for Small Business Capital Formation leads the Forum. The following fifteen policy recommendations, which range from recommendations related to
Broker-Dealer’s Failure to Comply with Regulation Best Interest’s Compliance Obligation is a Willful Violation of the General Obligation
A broker-dealer (the “Dealer”) entered into a cease-and-desist order with the Securities and Exchange Commission for failing to maintain and enforce written policies and procedures reasonably designed to achieve compliance with the Compliance Obligation of Regulation Best Interest (“Reg BI”), thus willfully violating the General Obligation of Reg BI.
The Dealer had written policies in
SEC Compliance Outreach for Investment Adviser and Investment Company Senior Officers
The Securities and Exchange Commission recently announced that it will host a compliance outreach program on November 7, 2024 (see the program’s agenda) on Advisers Act and Investment Company Act related topics. The agenda covers a broad array of issues from exam priorities and enforcement activities to areas that have been the topic of
Accelerated Schedule 13G Reporting Deadlines Effective September 30
The Securities and Exchange Commission’s accelerated Schedule 13G filing deadlines become effective September 30, 2024. On October 10, 2023, the SEC adopted changes to Schedules 13D and 13G relating to beneficial ownership reports (the “Final Rules”). The Final Rules are intended to modernize the rules governing beneficial ownership reporting and generally shorten the period for
SEC Abandons Review of Vacated Private Fund Adviser Rules
The Securities and Exchange Commission let pass the deadline to seek a review of the decision by the US Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) to vacate the SEC’s final rule relating to private fund advisers (the “Final Rule”). The SEC adopted the Final Rule on August 23, 2023. The Final
Upcoming Investor Advisory Committee Meeting
The Securities and Exchange Commission recently announced that its Investor Advisory Committee will be meeting on September 19, 2024. The meeting will consist of two panels.
The first panel will consider investment advice and the fiduciary duty obligation. The agenda notes that in light of the July 2024 Federal District Court stay of the Department
SEC Filing Fees
The Securities and Exchange Commission recently announced that the fees that registrants pay to register their securities with the SEC will increase from $147.60 per million dollars to $153.10 per million dollars, effective October 1. The new fee rate will be applicable to the registration of securities under Section 6(b) of the Securities Act of
SDNY Issues Final Ruling on SEC v. Ripple
Earlier this month, the Southern District of New York issued its final ruling and remedies order in Securities and Exchange Commission v. Ripple Labs, Inc. Judge Analisa Torres found that the SEC failed to show that any investor was harmed by Ripple’s sales of the crypto asset XRP, rejecting the SEC’s disgorgement theory.
The court