The Financial Industry Regulatory Authority (“FINRA”) recently announced important changes to its rules which deal with continuing education for registered persons. Updates to FINRA Rules 1210 and 1240 will create the new Maintaining Qualifications Program (“MQP”) [...]

Recent developments in several high-profile, Ponzi scheme cases have renewed questions about the extent of the fallout from investment fraud prosecutions and the importance of due diligence. [...]

On November 18, 2021, the U.S. Securities and Exchange Commission proposed updates to the Securities Exchange Act of 1934 rules for (i) electronic recordkeeping and (ii) prompt production of records. These updates apply to broker-dealers, security-based swap dealers, and major security-based swap participants. [...]

On January 1, 2022, certain US States will begin imposing new continuing education (“CE”) requirements for Investment Adviser Representatives (“IARs”) registered and doing business in those states. [...]

As discussed more fully in our earlier article, the Securities Exchange Commission (“SEC”) adopted its new Marketing Rule on December 22, 2020. The new Marketing Rule effectively merged two sets of rules to create a new paradigm that modernizes adviser marketing. [...]

On November 10, 20201, the SEC’s Division of Examinations issued a Risk Alert relating to investment adviser’s fee calculations. The deficiencies discussed in the Risk Alert stem from a nationwide SEC exam initiative that focused on fees charged to retail clients. [...]

At the end of every fiscal year, U.S. registered investment advisers (“RIAs”) have regulatory compliance tasks and obligations, which range from performing an annual review of the RIA’s compliance function to submitting annual update filings to the U.S. Securities and Exchange Commission (“SEC”) or state regulators. [...]

The Corporate Transparency Act (“CTA”) will soon require U.S. domiciled or active entities to report beneficial ownership information to the U.S. Department of the Treasury’s (“the Treasury”) Financial Crimes Enforcement Network (“FinCEN”) [...]

FINRA proposed a change to its expungement rules in the Fall of 2020, seeking to alter certain aspects of the expungement process, including substantially shortening the time limit for a registered representative to seek expungement of customer-related disclosures and allowing expungement to be granted only by a three-person panel (previously a single arbitrator could order expungement). [...]

Investor sophistication standards are critical for hedge funds, private equity funds and other advisory firms that use performance-based compensation agreements. The “accredited investor” standard is the most familiar, but the “qualified client” standard is more important when a firm charges a fee based on investment profits. [...]

In a recent administrative proceeding before the Securities and Exchange Commission, crypto firm Blotics, Ltd., also known as Coinschedule.com, drew civil penalties for violating federal securities laws. On July 14, 2021, the SEC ordered Coinschedule to disgorge its profits earned from touting digital assets on its platform without disclosing its profit motive to potential investors. [...]

The SEC’s Division of Enforcement announced action against a whopping 27 investment advisers in connection with issues relating to the filing and distribution of Form CRS. According to the SEC announcement, the 27 investment advisers failed to timely file (even after being notified by the SEC to do so) and deliver their Form CRS documents to clients [...]

On Wednesday July 7th, the White House announced President Biden intends to issue a Presidential Executive Order limiting the use of noncompete agreements in employment situations. While this anticipated Order will impact a broad swath of industries, it may have significant, potential consequences for the financial services/brokerage industry. [...]

Recent developments in blockchain technology have made it possible to own verifiable, digital “prints” of media properties. Transactions involving these speculative, emerging assets implicate various laws and raise novel legal questions. [...]

Ransomware has emerged as the hack-du-jour and seems to be happening with more and more frequency. On June 7, 2021, the Department of Justice announced the recovery of $2.3 Million in cryptocurrency that was paid in connection with a May 8, 2021 ransomware attack. [...]

On January 1, 2021, Congress passed H.R. 6395 National Defense Authorization Act for Fiscal Year 2021 (NDAA). While the act covers various issues, Section 6501 amends portions of the Securities Exchange Act of 1934 (Exchange Act) regarding disgorgement and equitable remedies. [...]

After an initial, Covid-induced lull, advisor transitions began picking up steam in late 2020 and now have reached record pace. [...]

After an initial, Covid-induced lull, advisor transitions began picking up steam in late 2020 and now have reached record pace. [...]

New York State passed new anti-SLAPP laws on November 10, 2020. The term “SLAPP” is an acronym that stands for “Strategic Lawsuit Against Public Participation.” [...]

On December 22, 2020, the Securities and Exchange Commission (“SEC”) voted to propose an amendment to Rule 144 under the Securities Act of 1933. The proposed rule revises the holding period for certain market-adjustable securities. The SEC defines a “market-adjustable security” as “a convertible or exchangeable security that provides for a conversion rate, conversion price, or other terms that, in each case, would have the effect of offsetting, in whole or in part, declines in value of the underlying securities that may occur prior to conversion or exchange.” [...]