On May 13, 2024, the US Securities and Exchange Commission (“SEC”) and the US Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a joint notice of proposed rulemaking (the “CIP Proposal”) that would apply customer identification program obligations to SEC registered investment advisers and exempt reporting advisers. In this Legal Update, we provide

The Securities and Exchange Commission announced an upcoming meeting of its Investor Advisory Committee, which will be held on June 6, 2024.  The agenda includes a number of interesting topics.

The Committee will consider and address the impact of “finfluencers.”  The agenda notes that recent studies have found that these social media influencers who focus

Earlier this week, Securities and Exchange Commission Chair Gensler issued a statement regarding the move to a T+1 settlement cycle, which will occur just after the Memorial Day weekend, on Tuesday, May 28, 2024 in the United States.  The transition in Canada will take place on Monday, May 27, 2024.

Chair Gensler reiterated his view

On May 15, 2024, the US Securities and Exchange Commission (“SEC”) adopted amendments (the “Amendments”) to Regulation S-P under the Securities Exchange Act of 1934 (the “Exchange Act”), which governs the treatment of nonpublic personal information about consumers by certain financial institutions, to modernize and enhance the protections under the regulation.

The Amendments require broker-dealers

In a statement today, the Director of the SEC’s Division of Corporation Finance commented on the relatively new Form 8-K Item 1.05 requirement.  Last summer when the SEC adopted the final rules relating to cybersecurity incidents, the rules included a new requirement under Item 1.05 of Form 8-K relating to the occurrence of an incident

Speaking at the recent conference on Emerging Trends in Asset Management hosted by the SEC’s Division of Investment Management, the Director the Division of Investment Management Natasha Vij Greiner cited a number of statistics from the SEC’s recently published “Registered Fund Statistics.”  She cited the rapid growth of the asset management industry—now comprised of more

On May 17, 2024, the Director of the Division of Corporation Finance of the Securities and Exchange Commission, Erik Gerding, and the Chief Accountant, Paul Munter, issued a statement regarding International Financial Reporting Standard (IFRS) 19, Subsidiaries without Public Accountability:  Disclosures, or IFRS 19. 

What is IFRS 19?  IFRS 19 allows certain subsidiaries of reporting

Introduced under Title III of the JOBS Act, Regulation Crowdfunding (“Regulation CF”) was promulgated to allow startups and emerging companies to raise capital from a wider pool of investors through equity crowdfunding platforms.  Regulation Crowdfunding allows non-accredited investors to invest through these platforms.  Currently, a company may raise up to $5 million in a 12-month

The U.S. Securities and Exchange Commission has been attentive to “AI-washing,” wherein public companies or other regulated entities make misleading or false claims in an effort to benefit from investor interest in AI-related technologies. 

We comment on these trends in our article here.

On May 1, 2024, the SEC Small Business Capital Formation Committee submitted its accredited investor definition recommendations to the SEC.  Currently, an investor may qualify as an accredited investor by meeting certain professional criteria (i.e., FINRA Series 7, 65, or 82 licenses), or by meeting certain financial thresholds, including (1) a net worth of over