On February 15th, 2023, the Securities and Exchange Commission (SEC) announced its proposed rule changes to enhance protections for customer assets managed by registered investment advisers. If adopted, the changes would amend and redesignate rule 206(4)-2, the Commission’s custody rule, under the Investment Advisers Act of 1940, and amend certain […]
Compliance
SEC Proposes Rule to Prohibit Conflicts of Interest in Certain Securitizations
Jan. 25, 2023 — The SEC today proposed a rule to implement Section 27B of the Securities Act of 1933, a provision added by Section 621 of the Dodd-Frank Act. The rule is intended to prevent the sale of asset-backed securities (ABS) that are tainted by material conflicts of interest. Specifically, […]
What Is FINRA
FINRA is the Financial Industry Regulatory Association and is the successor to the National Association of Securities Dealers. FINRA is authorized by Congress to regulate and oversee the broker-dealer industry, ensuring that it operates fairly and honestly. It oversees over 4,000 brokerage firms and more than 600,000 brokers across the […]
What Happens If I Ignore an SEC Subpoena?
Anyone who follows our blog or website knows that the SEC Enforcement Division is getting tougher on financial firms, investors, and issuers. When you are served with an SEC subpoena, you know that they are not fun to deal with. But you must deal with it. Even if you don’t know or didn’t commit a […]
Regulation CF Equity Crowdfunding
What is Regulation CF? Regulation CF’s crowdfunding rules are in Section 4(a)(6) of the Securities Act. It allows startups and small businesses to use the internet to raise capital through equity investments from a large number of investors. Regulation CF is available for offerings up to $1 million, giving accredited […]
SEC Charges Former BlackRock Portfolio Manager with Undisclosed Conflict of Interest
Jan. 5, 2023 — The Securities and Exchange Commission today charged Randy Robertson, a former BlackRock Advisors, LLC portfolio manager, for failing to disclose a conflict of interest arising from his relationship with a film distribution company in which the fund he managed for BlackRock invested millions of dollars. To […]
SEC Charges Honeywell with Bribery Schemes in Algeria and Brazil
Dec. 19, 2022 —The Securities and Exchange Commission today announced charges against Honeywell International Inc. for violations of the Foreign Corrupt Practices Act (FCPA) arising out of bribery schemes that took place in Brazil and Algeria. The company has agreed to pay more than $81 million to settle the SEC’s […]
SEC Adopts Amendments to Modernize Rule 10b5-1 Insider Trading Plans and Related Disclosures
On December 14, 2022 the SEC adopted amendments to Rule 10b5-1 under the Securities Exchange Act of 1934 and new disclosure requirements for plans adopted pursuant to the rule to enhance investor protections against insider trading. The amendments include updates to Rule 10b5-1(c)(1), which provides an affirmative defense to insider […]
AT&T Settles SEC Charge of Selectively Disclosing Material Information to Wall St. Analysts
Dec. 5, 2022 — The Securities and Exchange Commission today announced that AT&T agreed to pay a $6.25 million penalty and three company executives agreed to pay $25,000 apiece stemming from charges brought in March 2021 related to the company’s selective disclosure of material nonpublic information to research analysts in violation of […]
SEC Publishes FY22-26 Strategic Plan
Nov. 23, 2022 —The Securities and Exchange Commission today released its Strategic Plan for fiscal years 2022 to 2026, outlining agency objectives to fight against fraud, maintain a robust and relevant regulatory framework, and sustain a skilled and diverse workforce to serve America’s investors and capital-raising entrepreneurs alike. “Our capital […]