On February 26, 2021, the US Securities and Exchange Commission’s (“SEC”) Division of Examinations published a risk alert in connection with the offer, sale, and trading of digital assets that are securities. The risk alert provides observations made by Division of Examinations staff during examinations of broker-dealers, investment advisers, exchanges, and transfer agents. The risk
Broker-dealers
SEC Enforcement Annual Report FY2020: Key Takeaways and Trends
On November 2, 2020, the U.S. Securities and Exchange Commission (“SEC”) Division of Enforcement staff published its annual enforcement report for fiscal year 2020. This has been an unprecedented year, including for the SEC’s Division of Enforcement. SEC Chairman Jay Clayton noted that the report highlights “enforcement’s extraordinary efforts” amidst the challenges of the COVID-19
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SEC Amends Rule 15c2-11
On September 16, 2020, the Securities and Exchange Commission adopted amendments to Exchange Act Rule 15c2-11. This rule was last amended about thirty years ago. Rule 15c2-11 prescribes requirements relating to the publication or submission of quotations by broker-dealers in a quotation medium other than a national securities exchange, so OTC markets. Before a broker-dealer…
Developments Affecting Social Media Usage by Issuers and Regulated Entities
Intelligize Webinar
June 9, 2020
1:00pm – 2:00pm EDT
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The growing use of social media has created challenges for federal securities regulators, who must enforce antifraud rules that were written at a time when the prevailing technology was the newspaper.
This webinar addresses how federal regulation of securities has evolved in the face…
Legal Update: COVID-19: FINRA Addresses U.S. Broker-Dealer Preparedness and Regulatory Relief in Regulatory Notice 20-08
On March 9, 2020, the Financial Industry Regulatory Authority (FINRA) published Regulatory Notice 20-08 (Notice) with respect to business continuity planning in connection with the recent coronavirus (COVID-19) outbreak. The Notice offers guidance on preparing for potential pandemic-related risks and provides regulatory relief from certain requirements in light of COVID-19.
Read our full Legal Update
Proposed Changes to Rule 15c2-11
One of the Securities and Exchange Commission’s priorities under Chair Clayton’s leadership has been protection of retail investors, including through rigorous enforcement of microcap fraud. Consistent with that focus, yesterday, the Commission released proposed amendments to Securities Exchange Act Rule 15c2-11. This rule requires that certain issuer information be made available to and be reviewed…
SEC Publishes Final Interpretation of Investment Adviser Standard of Conduct
On June 5, 2019, the SEC published an interpretation of the standard of conduct for investment advisers under the Investment Advisers Act of 1940. The objective of the Proposed and Final Interpretations was to reaffirm and clarify certain aspects of an adviser’s fiduciary duty under Section 206 of the Advisers Act. In the SEC’s view,…
Components of Regulation Best Interest
As we previously blogged, on June 5, 2019, the SEC adopted Regulation Best Interest. The final regulation includes obligations relating to disclosure, care, conflicts of interest and compliance, which are each specific components of the general obligation. Our chart summarizes the components of Regulation Best Interest.
Read our chart here.
Regulation Best Interest
On June 5, 2019, the Securities and Exchange Commission (SEC) adopted Regulation Best Interest (Rule 15l-1 under the Securities Exchange Act of 1934 (Exchange Act)), which requires broker-dealers and their associated persons who are natural persons to act in the best interest of their retail customers when making a recommendation. The SEC also adopted Form…
SEC Adopts Final Regulation Best Interest
At today’s open meeting, the Securities and Exchange Commission adopted a final Regulation Best Interest, as well as additional guidance.
Final action relating to the broker-dealer standard of conduct had been anxiously anticipated. The Commission noted that Regulation Best Interest enhances the standard of conduct beyond the current broker-dealer suitability standard. In addition, the Commission…