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For those of us who are unhappy or worse about the outcome of the 2024 presidential election, fearing (among other things) that we are about to enter a modern incarnation of the dark ages, I respectfully suggest that the time has come to light a candle rather than curse the darkness. The candle is rather limited and simple: whatever else may happen during the next Trump administration, there’s a fair chance that those of us who practice securities law will find the SEC a lot more pleasant (or less unpleasant) to deal with. Let’s face it – the SEC under Chair Gary Gensler has been difficult.  I will try to take the high road by simply saying that under his leadership the SEC has been dismissive if not downright scornful of the issuer community when it comes to both rulemaking and enforcement.  There are many examples on the rulemaking side, but my favorite (so to speak) was the decision to require quarterly disclosure of corporate stock
Author: Robert B. Lamm
Posted: November 13, 2024, 1:31 am
On October 28, 2024, Glancy Prongay & Murray LLP, led by firm attorneys Kara Wolke and Melissa Wright, secured preliminary approval of a $433.5 million settlement on behalf of Alibaba investors. GPM filed the initial complaint in this case back in 2020 and serves as Lead Counsel. The settlement would be the largest securities class action settlement against a Chinese issuer, the twenty-first largest securities class action settlement in the Southern District of New York, and one of the fifty largest securities class action settlements in the U.S., since the PSLRA was enacted nearly thirty years ago. See: https://news.bloomberglaw.com/litigation/alibaba-to-pay-433-million-to-settle-antitrust-investor-suit The post GPM Secured Preliminary Approval of a $433.5 Million Settlement on Behalf of Alibaba Investors appeared first on Glancy Prongay & Murray LLP.
Author: Michaela Ligman
Posted: November 12, 2024, 11:34 pm
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Chun Elmejjad (Elmejjad) has been accused by an investor and barred by a regulator for engaging in undisclosed investment activities including undisclosed outside business activities (OBAs).  According to records kept by The Financial Industry Regulatory Authority (FINRA), Elmejjad was employed by Equitable Advisors, LLC (Equitable) at the time of the activity.  If you have been a victim of Elmejjad’s alleged misconduct our firm may be able to assist you in recovering funds. On January 24, 2024, Elmejjad accepted a permanent industry bar with FINRA by failing to respond to the regulator’s requests for documents and information.  The request for information was likely related to Elmejjad’s termination for cause in November of 2023 from Equitable when the firm filed a Form U5 claiming that Elmejjad was terminated due to violating company policy by accepting a…
Author: Staff Attorney
Posted: November 12, 2024, 7:44 pm
On 12 November 2024, the Bank of England (BoE) published an updated procedures document for its Enforcement Decision Making Committee (EDMC). The update follows the publication of the BoE’s policy statement on its approach to enforcement and proposed changes to statements of policy and procedure following the Financial Services and Markets Act 2023. The EDMC was created by the Court of the BoE (which manages the affairs of the BoE) to help the BoE discharge its responsibilities and strengthen its enforcement processes by ensuring a functional separation between the BoE’s investigation teams and its decision makers in contested enforcement cases within the following statutory regimes operated by the BoE: (1) Prudential Regulation; (2) Financial Market Infrastructure (FMI); (3) Resolution; (4) Securitisation; (5) Wholesale Cash Distribution and (6) Critical Third Parties.
Author: Anita Edwards and Simon Lovegrove (UK)
Posted: November 12, 2024, 5:11 pm
On 12 November 2024, the Bank of England (BoE) published a policy statement on its approach to enforcement and proposed changes to statements of policy and procedure following the Financial Services and Markets Act 2023 (FSMA 2023). The policy statement provides feedback on responses to the BoE’s consultation paper on the topic, published in March 2024, and sets out its final policy. The BoE’s final policy is set out in the BoE’s updated approach to enforcement: statements of policy and procedure (Enforcement SoPP). The policy statement confirms that the Enforcement SoPP has been amended to reflect updates to the BoE’s: Enforcement policy and procedure in connection with the Securitisation Regulations 2024. Enforcement policy and procedure in respect of digital settlement assets. Enforcement policy in connection with the wholesale distribution of cash. Enforcement policy and procedure with respect to critical third parties. The updated…
Author: Anita Edwards and Simon Lovegrove (UK)
Posted: November 12, 2024, 5:08 pm
On 12 November 2024, the Financial Conduct Authority (FCA) published a letter to CEOs of credit rating agencies (CRAs), setting out its supervisory strategy for firms in that portfolio. The letter sets out the FCA’s view of the key risks in the sector, its expectations of CRAs and a summary of the work it intends to do over the next two years. The FCA notes that it has seen some progress by CRAs in response to the risks identified in its previous portfolio letters, in February 2022 and October 2022, but flags that there is more to be done, particularly in the areas highlighted in the letter. CRAs’ boards are expected to play a key role in the oversight and consideration of these risks including any actions to address them. The FCA also emphasises that it considers a strong governance framework essential to ensuring CRAs deliver quality and independent ratings. The letter highlights the following key supervisory priorities for the FCA in relation to CRAs: …
Author: Anita Edwards and Simon Lovegrove (UK)
Posted: November 12, 2024, 5:06 pm
On 12 November 2024, the European Banking Authority (EBA) issued a consultation paper concerning draft guidelines that address the mandate given to the European Supervisory Authority under Article 123(1) of the Capital Requirements Regulation as amended by Regulation (EU) 2024/1623 (CRR) to specify proportionate diversification methods for retail exposures under which an exposure is to be considered as one of a significant number of exposures with similar characteristics, such that the risks associated with such exposure are substantially reduced. Satisfactory diversification is one of the mandatory requirements for retail exposures to be assigned the preferential retail risk weight, as set out under CRR Article 123 paragraphs 1 and 2. The Basel III standards allow sufficient granularity of the retail portfolio as one method to ensure satisfactory diversification of the regulatory retail portfolio, whereby no aggregate exposure to one counterparty is to exceed 0.2% of the…
Author: Simon Lovegrove (UK)
Posted: November 12, 2024, 4:58 pm
It is now well-recognized, as Bloomberg columnist Matt Levine has famously said, that “Everything Everywhere is securities fraud.” Just the same, it does come as a surprise sometimes to see the things that make their way into securities class action lawsuit complaints. In the latest example of this phenomenon at work, a plaintiff shareholder has filed a securities class action lawsuit against the restaurant company Chipotle Mexican Grill, as a result of a social media campaign raising questions about the chain’s meal portions. To combat the social media chatter, the company concentrated on providing generous portions, which cut into the company’s margins – and drew a securities lawsuit. A copy of the November 11, 2024, complaint in the suit can be found here. Background Chipotle Mexican Grill owns and operates fast-food restaurants serving Mexican food. On May 29, 2024, the Washington Post published an article reporting on online…
Author: Kevin LaCroix
Posted: November 12, 2024, 4:29 pm
Market Watch 81 might on a first pass appear relatively uncontroversial in giving feedback on the FCA’s recent findings on transaction reporting. I would say that one should think again on this and suggest that there is a lot of food for thought here. The basics on the Market Watch are set out in our earlier blog here. I think that the really interesting points in the Market Watch relate to the depth of governance a firm needs to satisfy the FCA. I would pick up three points in this context all of which sit under what I would describe as the governance umbrella. First, the importance of documentation. The old days in which firms might delegate most of this area to the technical IT transaction reporting specialists need to be over. The FCA’s messages on having adequate documentation, including in relation to change management, clarity about first- and second-line roles, escalation mechanics, adequate data lineage, escalation mechanics and MI are all clear.…
Author: Jonathan Herbst (UK)
Posted: November 12, 2024, 1:04 pm
On 12 November 2024, the European Banking Authority (EBA) published its final methodology, draft templates and template guidance for the 2025 EU-wide stress test. The EU-wide stress test is to assess the resilience of EU banks to a common set of adverse economic developments, identifying potential risks, informing supervisory decisions and increasing market discipline. The stress test exercise will formally start in January 2025, following the release of the macroeconomic scenarios, with the results scheduled for publication in early August 2025.
Author: Simon Lovegrove (UK) and Michael Born (DE)
Posted: November 12, 2024, 12:46 pm
With the election in the rear-view mirror, many people are speculating about the potential implications of Trump 2.0 for the SEC and securities regulation in general.  Some of these are pretty obvious – Donald Trump promised that Gary Gensler would be a goner “on day one,” and he seems likely to depart even before Trump takes office. The SEC’s climate disclosure rules also are almost certainly on the chopping block, and its long-delayed proposals on human capital management and corporate board diversity disclosures will probably never see the light of day. Those political footballs may garner most of the headlines during the next few months, but what about the Trump Administration’s approach to more “meat & potatoes” securities law issues?  Even though Donald Trump claims to know nothing about Project 2025, plenty of others in his orbit do, and it seems likely that many of the policy objectives laid out in that document…
Author: John Jenkins
Posted: November 12, 2024, 11:20 am
On 11 November 2024, the International Organization of Securities Commissions (IOSCO) issued a consultation report on revised recommendations for liquidity risk management for collective investment schemes (CIS), especially for open-ended funds. IOSCO is also consulting on complementary guidance for the effective implementation of the recommendations for liquidity risk management. The recommendations describe a range of initiatives throughout the entire life cycle of the CIS, i.e., during both the pre-launch/design phase of the CIS and the on-going day-to-day operation of the CIS, in order that responsible entities can appropriately design and implement an effective liquidity risk management process. Such process includes determining dealing arrangements in alignment with asset liquidity, monitoring and managing liquidity risks, considering and using liquidity management tools (LMTs) and other liquidity risk management measures, putting in place contingency plans to…
Author: Simon Lovegrove (UK)
Posted: November 12, 2024, 11:18 am
On 11 November 2024, HM Treasury (HMT) published its response to the consultation on near-term reforms to the UK ring-fencing regime. It also published the draft Financial Services and Markets Act 2000 (Ring-fenced Bodies, Core Activities, Excluded Activities and Prohibitions) (Amendment) Order 2024 (draft Order) on legislation.gov.uk, along with a draft explanatory memorandum. Background The UK ring-fencing regime was introduced in 2013 by the Financial Services (Banking Reform) Act 2013, which inserted certain provisions into the Financial Services and Markets Act 2000. The regime, which was introduced as part of the structural reforms made to the UK banking sector following the 2008 Global Financial Crisis, broadly requires large banks to separate their core retail banking services from their investment banking activities, with the aim of improving the sector’s resilience to future crises while ensuring failures could be managed with minimal disruption to…
Author: Jochen Vester (UK), Anita Edwards and Simon Lovegrove (UK)
Posted: November 12, 2024, 11:16 am
With Gary Gensler on the way out, speculation quickly turned to who would become the next SEC chair? This excerpt from a recent Bloomberg Law article identifies the leading candidates: Richard Farley, a partner at Kramer Levin Naftalis & Frankel, and Kirkland & Ellis partner Norm Champare among contenders to replace Gary Gensler as chair of the US Securities and Exchange Commission, according to people with knowledge of the matter. Robinhood Markets Inc. legal chief Dan Gallagher, current SEC Commissioner Mark Uyeda and Heath Tarbert, a former chairman of the Commodity Futures Trading Commission, are also among those being considered for the job, said other people with knowledge of the matter, who asked not to be identified because the information isn’t public. Also in contention are former SEC Commissioner Paul Atkins and Robert Stebbins, a partner at Willkie Farr & Gallagher, some of the people said. Commissioner Hester Peirce’s name has also surfaced,…
Author: John Jenkins
Posted: November 12, 2024, 11:15 am
On 11 November 2024, the draft Short Selling Regulations 2024 were published on legislation.gov.uk, along with a draft explanatory memorandum. Background The Financial Services and Markets Act 2023 repeals assimilated law in financial services, subject to commencement. That assimilated law will be replaced with rules set by the UK financial services regulators. Purpose of the draft Regulations The draft Regulations establish a new legislative framework for the regulation of short selling, creating designated activities for short selling in order to give the Financial Conduct Authority (FCA) rulemaking powers related to those activities and powers to intervene in exceptional circumstances. The aim of giving the FCA additional rulemaking responsibilities is to ensure that financial services firms and consumers will benefit from agile, tailored rule-making that suits UK markets. Policy changes introduced by the draft Regulations The draft Regulations make a…
Author: Anita Edwards and Simon Lovegrove (UK)
Posted: November 12, 2024, 11:12 am
On 11 November 2024, the draft Financial Services and Markets Act 2000 (Designated Activities) (Supervision and Enforcement) Regulations 2024 were published on legislation.gov.uk, along with a draft explanatory memorandum. Background The Financial Services and Markets Act 2023 inserted a new Part 5A into the Financial Services and Markets Act 2000 (FSMA 2000), which allows HM Treasury to make regulations to ‘designate’ activities related to financial markets financial markets exchanges, instruments, products, or investments, and contains powers for the Financial Conduct Authority (FCA) to make rules and give directions relating to designated activities. The new regulatory framework set out in Part 5A of FSMA 2000 is known as the designated activities regime (DAR). Purpose of the draft Regulations The draft Regulations are intended to enable the FCA to supervise and enforce rules that it makes under the DAR. It extends the FCA’s existing supervision…
Author: Anita Edwards and Simon Lovegrove (UK)
Posted: November 12, 2024, 11:10 am
On 11 November 2024, the Financial Conduct Authority (FCA) published a webpage setting out the outcome of its enforcement regulatory disclosure review. The review was carried out following a recommendation from the Upper Tribunal. The FCA confirms that it has completed the review and made a number of changes to its disclosure processes in regulatory enforcement cases, which aim to improve the quality of disclosure by providing greater support for case teams. In particular, the FCA highlights that it is: Taking a broader approach to disclosure, which will mean its review of documents is not focused only on identifying potentially undermining material. Enhancing its existing training on disclosure to include additional specialist training for those managing and overseeing disclosure exercises. Providing additional training for staff and more detailed guidance on quality assurance. Clarifying the roles and responsibilities of staff and managers involved in…
Author: Anita Edwards and Simon Lovegrove (UK)
Posted: November 12, 2024, 11:06 am
In February this year the FCA sent a survey to over 1,000 regulated wholesale financial services firms asking a series of questions about incidents of non-financial misconduct recorded by the firms in the years 2021, 2022 and 2023. In this latest Global Regulation Tomorrow Plus episode, Katie Stephen, Hannah Meakin, Simon Lovegrove and Catherine Pluck discuss the results of the FCA’s survey which were published on 25 October 2024. Listen to the podcast here.
Author: Katie Stephen (UK), Hannah Meakin (UK), Simon Lovegrove (UK) and Catherine Pluck (UK)
Posted: November 12, 2024, 11:02 am
Join us tomorrow for the webcast – “SEC Enforcement: Priorites & Trends” – to hear Hunton Andrews Kurth’s Scott Kimpel, Locke Lord’s Allison O’Neil, and Quinn Emanuel’s Kurt Wolfe provide insights into the lessons learned from recent enforcement activities and insights into what the new year might hold – including how the election may impact the SEC’s enforcement program. Members of this site are able to attend this critical webcast at no charge. If you’re not yet a member, try a no-risk trial now. Our “100-Day Promise” guarantees that during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. The webcast cost for non-members is $595. You can sign up by credit card online. If you need assistance, send us an email at info@ccrcorp.com – or call us at 800.737.1271. We will apply for CLE credit in all applicable states (with the exception of SC and…
Author: John Jenkins
Posted: November 12, 2024, 11:00 am
In the latest Global Regulation Tomorrow Plus episode, Matthew Gregory, Joe Bamford and Simon Lovegrove discuss some of the key issues concerning HM Treasury’s recent consultation on regulating the buy now pay later sector. Listen to the podcast here.
Author: Matthew Gregory (UK), Joe Bamford (UK) and Simon Lovegrove (UK)
Posted: November 12, 2024, 10:59 am




Mark J. Astarita, Esq. is a securities lawyer who represents investors, financial professionals and firms in litigation, arbitration and regulatory matters across the country. He is a partner in the national securities law firm of Sallah Astarita & Cox, LLC and can be reached by email at mja@sallahlaw.com or by phone at 212-509-6544.

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Securities Attorney at Sallah Astarita & Cox | 212-509-6544 | mja@sallahlaw.com | Website | + posts

Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.