A clear breakdown of why the SEC is targeting “AI washing” and what advisers, broker-dealers, and issuers must do to avoid misleading AI claims. Learn the enforcement lessons, compliance expectations, … Continue reading AI in Finance: SEC Crackdown on Misleading Claims
A quick breakdown of why financial firms struggle to classify representatives as independent contractors under labor law while still meeting SEC and FINRA supervisory requirements.
Introduction The SEC’s Division of Economic and Risk Analysis (DERA) recently released a comprehensive review of broker-dealer activity from 2010 through 2024. While the findings highlight industry-wide consolidation, shifting revenue … Continue reading SEC Report Warns Small Broker-Dealers: It’s Time to Rethink Strategies
Co-hosted by the SEC, MSRB and FINRA, this year’s program provides practical and tailored discussions addressing top concerns and interests among municipal securities dealers and municipal advisors, including conflicts of … Continue reading FINRA Compliance Outreach Program for Municipal Advisors and Municipal Dealers – Virtual Event
In a move that reflects the evolving preferences of retail investors and the growing reliance on digital technology, a bipartisan group of lawmakers introduced the Improving Disclosure for Investors Act … Continue reading E-Delivery Reform Advances: What the Improving Disclosure for Investors Act of 2025 Means for the Financial Industry
Updated Effective Date and Reassessment of the IA AML Rule On July 21, 2025, the U.S. Department of the Treasury (“Treasury Department”), through the Financial Crimes Enforcement Network (“FinCEN”), announced … Continue reading Compliance Deadline for RIA AML Rule Postponed to 2028 and Rulemaking Process Reopened
Overview This update on the U.S. Securities and Exchange Commission’s (SEC) recent policy reversals, staffing reductions, and enforcement dismissals offers a practical example of the broader themes explored in our … Continue reading SEC Undergoes Significant Policy Shift Amid Regulatory Rollbacks and Staffing Reductions
Overview The Financial Industry Regulatory Authority (“FINRA”) has requested comments on a proposed amendment (the “Amendment”) to Rule 3220 (“Rule 3220”) that it recently filed with the Securities and Exchange … Continue reading FINRA Seeks Feedback on Rule 3220 Overhaul: New Limits, Codified Guidance, and Exemptions
The Division of Corporation Finance of the U.S. Securities and Exchange Commission (“SEC”) recently issued new interpretive guidance (the “Staff Guidance”) that provides helpful clarity for private fund issuers seeking … Continue reading SEC Staff Guidance Eases Accredited Investor Verification Under Rule 506(c)
Overview The Financial Industry Regulatory Authority (FINRA), while not a federal agency, operates under the supervision of the United States Securities and Exchange Commission (SEC). As the SEC aligns more … Continue reading Deregulation, Oversight and FINRA: A New Regulatory Era?
The SEC Division of Examinations recently issued a Risk Alert addressing compliance issues that are faced by investment advisers that have recently registered with the SEC (“newly-registered advisers”). While the … Continue reading Observations from SEC Examinations of Newly Registered Advisers
As noted in our earlier articles, the reforms made to the Investment Advisers Act of 1940 (“Act”) that were adopted by the Securities and Exchange Commission (“SEC”) to modernize rules … Continue reading New RIA Marketing Rule Impacts Solicitor Relationships
As noted in our earlier articles, the Securities and Exchange Commission (“SEC”) adopted reforms under the Investment Advisers Act of 1940 (“Act”) to modernize rules that govern investment adviser advertisements … Continue reading Testimonials and Endorsements – Impact of the New RIA Marketing Rule
As previously noted, the Securities and Exchange Commission (“SEC”) adopted reforms under the Investment Advisers Act of 1940 (“Act”) to modernize rules that govern investment adviser advertisements and payments to … Continue reading Overview of Advertising – Impact of the New RIA Marketing Rule
The Securities and Exchange Commission (“SEC”) has proposed a conditional exemption from broker registration requirements for certain “finders” who assist issuers with raising capital in private markets from accredited investors. … Continue reading SEC Proposes Exemption for Finders
Proposed Amendments The Securities and Exchange Commission (the “SEC”) has proposed amendments to Section 13(f) of the Securities Exchange Act of 1934 (“Form 13F”). The most significant amendment change would … Continue reading SEC Proposes Amending Form 13F Reporting Thresholds
The Securities and Exchange Commission (“SEC”) recently issued a Risk Alert addressing client account credential compromises against SEC-registered investment advisers (“advisers”) and brokers and dealers (“broker-dealers,” and together with advisers, … Continue reading Credential Compromise Risk Increasing for Client Accounts
The Securities and Exchange Commission (SEC) announced that it has scheduled an open meeting on June 5 to consider pending rulemaking related to the relationship of broker-dealers and investment advisers … Continue reading Release of Regulation Best Interest to be Considered by SEC on June 5
As a result of the federal government shutdown, if you would like Division of Corporation Finance of the Securities and Exchange Commission (Corp Fin) to consider a request for acceleration … Continue reading Government Shutdown Impacts SEC Operations
The Securities and Exchange Commission (SEC) recently adopted rules and amendments designed to promote research on investment funds. These funds include mutual funds, exchange‑traded funds, registered closed-end funds, business development companies, … Continue reading SEC Adopts Rules Promoting Research on Investment Funds
To address recent comments regarding the concept that the Securities and Exchange Commission (“SEC”) is de facto rulemaking based on the views of staff, SEC Chairman Jay Clayton issued a … Continue reading SEC Chairman Clayton Addresses SEC Staff Views
The Securities and Exchange Commission (SEC) has proposed for public comment several amendments to the SEC’s rules implementing its whistleblower program. The whistleblower provisions of the Securities Exchange Act of … Continue reading SEC Proposes Amendments to Whistleblower Rule
Comments are due to the Securities and Exchange Commission (SEC) by August 18, 2018 on the proposed Regulation Best Interest. This is a significant proposal as it is the SEC’s … Continue reading Regulation Best Interest Update
The Securities and Exchange Commission (“SEC”) announced the agenda for the next meeting of its Advisory Committee on Small and Emerging Companies. The committee will discuss the Sarbanes-Oxley Act auditor … Continue reading SEC Released Agenda for Meeting of Advisory Committee on Small and Emerging Companies
The Securities and Exchange Commission (“SEC”) has recently noted that there have been reports of malicious emails sent to some EDGAR filers that appear to be part of a phishing campaign … Continue reading Phishing Scam Targeting EDGAR Filers
The Supreme Court ruled that the Securities and Exchange Commission’s power to require the disgorgement of illegally obtained profits can only be applied to funds obtained up to five years … Continue reading Supreme Court Decision limits SEC Disgorgement Powers
The Office of Compliance Inspections and Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) has released the SEC Exam Priorities for 2017 (the “SEC Exam Priorities”). In general, the … Continue reading SEC Exam Priorities for 2017 Released
The Securities and Exchange Commission (SEC) has recently adopted amendments to several Investment Advisers Act rules, including the investment adviser registration data collection and reporting forms to enhance the reporting … Continue reading Investment Advisers Face Enhanced Information Reporting
The U.S. Securities and Exchange Commission (“SEC”) has recently announced whistleblower awards to four individuals who provided the SEC with information in three ongoing investigations. The SEC announced on May 13, 2016 … Continue reading Three Whistleblower Awards Issued By SEC
The Securities and Exchange Commission (“SEC”) has issued Compliance and Disclosure Interpretations (C&DIs) providing interpretive guidance on Regulation Crowdfunding, which became effective May 16. The C&DIs answer a number of … Continue reading Crowdfunding Guidance Released by SEC
The Securities and Exchange Commission’s (“SEC”) Advisory Committee on Small and Emerging Companies met on May 18 and focused primarily on the proposed changes in the definition of an accredited investor. During … Continue reading Changes in Accredited Investor Definition on Horizon
The Financial Industry Regulatory Authority (“FINRA”) has proposed the creation of a separate rule set that would apply to firms that meet the definition of a ‘‘capital acquisition broker’’ (“CAB”) and … Continue reading Comment Period Ends May 6, 2016 on the Proposed Capital Acquisition Broker Rules
Since early last year, the Securities Industry and Financial Markets Association(“SIFMA”) and the Investment Company Institute (“ICI”) have publicly supported the shortening of the settlement cycle from trade date plus three … Continue reading The Pressure to Shorten the Settlement Cycle From T+3 to T+2 Has Increased
In her opening remarks at the annual “SEC Speaks” conference held in Washington, D.C., the U.S. Securities and Exchange Commission (“SEC”), SEC Chairman Mary Jo White cautioned that the SEC … Continue reading Upshot of SEC’s 2016 Goals – Active Year for Regulatory Rulemaking
The Securities and Exchange Commission announced that starting on Feb. 16, 2016, the fee rates applicable to most securities transactions will be set at $21.80 per million dollars. Consequently, each … Continue reading SEC Announces its Fee Rate Advisory for Fiscal Year 2016
The Financial Industry Regulatory Authority (“FINRA”) has announced a proposed new set of rules that address the needs of FINRA member firms that are solely corporate financing firms that advise … Continue reading FINRA Proposes New Registration Category for Corporate Financing Brokers
The Financial Industry Regulatory Authority, Inc. (“FINRA”) has filed a proposed rule change to adopt FINRA Rules 2030 (Engaging in Distribution and Solicitation Activities with Government Entities) and 4580 (Books … Continue reading FINRA Proposes “Pay-To-Play” Rules
The Securities and Exchange Commission released its Office of Compliance Inspections and Examinations’ (OCIE) 2016 exam priorities. New areas of focus include liquidity controls, public pension advisers, product promotion, and two popular investment … Continue reading SEC Releases the 2016 Examination Priorities
The Financial Industry Regulatory Authority (FINRA) announced in Regulatory Notice 15-50 that the Securities and Exchange commission approved amendments to FINRA Rule 2210 (Communications with the Public) that become effective … Continue reading FINRA Rule 2210 Amended to Require BrokerCheck Website Hyperlink
The Securities and Exchange Commission (SEC) announced a series of enforcement actions against lawyers across the country charged with offering EB-5 investments while not registered to act as brokers. In one … Continue reading Lawyers Tagged by SEC for Offering EB-5 Investments as Unregistered Brokers
The Securities and Exchange Commission (SEC) charged a New York-based investment adviser and its affiliated distributor with improperly using mutual fund assets to pay for the marketing and distribution of … Continue reading SEC Charges Investment Adviser With Improperly Using Mutual Fund Assets to Pay Distribution Fees
Two agencies approved a final rule that will govern how much money financial firms must set aside in derivatives deals. A key change from recent draft versions of the rule … Continue reading FDIC Approval of Margin Rules Triggers SEC Parallel Rule
The Securities and Exchange Commission (SEC) has adopted final rules to permit companies to offer and sell securities through crowdfunding. Crowdfunding is an evolving method of raising capital that has … Continue reading Final Crowdfunding Rules Adopted by the SEC
The Securities and Exchange Commission announced that in fiscal year 2015, it continued to build a strong record of first-of-their-kind cases that spanned the spectrum of the securities industry. The … Continue reading SEC Enforcement Activities in Fiscal 2015 Appear Aggressive
The Securities and Exchange Commission (“SEC”) recently published the Private Funds Statistics Report for Fourth Quarter 2014. The report provides private fund industry statistics and trends, reflecting aggregated data reported … Continue reading SEC Publishes Private Funds Statistics Report
The Securities and Exchange Commission announced enforcement actions against 22 municipal underwriting firms for violations in municipal bond offerings. The actions are the second round of filings against underwriters under … Continue reading SEC Sanctions Underwriting Firms for Fraudulent Municipal Bond Offerings
The Securities and Exchange Commission (SEC) announced that R.T. Jones Capital Equities Management, a St. Louis-based investment adviser, has agreed to settle charges that it failed to establish cybersecurity policies … Continue reading SEC Sanctions Investment Adviser $75,000 for Cyberattack
The Securities and Exchange Commission (SEC) Office of Compliance Inspections and Examinations (OCIE) has issued an additional Risk Alert regarding the Targeted Industry Reviews and Examinations Initiative for the second round of cybersecurity … Continue reading SEC Exam Program Doubles Up Focus on Cybersecurity
The Securities and Exchange Commission is warning brokerages to better monitor the sales of risky complex investments to their retail clients. In a recently issued National Exam Program Risk Alert, … Continue reading SEC to Broker-Dealers: Better Supervise Sales of Risky Products
Guggenheim Partners Investment Management LLC agreed to pay a $20 million penalty to settle charges brought by the Securities and Exchange Commission (SEC) that it breached its fiduciary duty by … Continue reading Guggenheim Partners Sanctioned for Failure to Disclose Conflict to Clients
The Securities and Exchange Commission has finally adopted the final rule t requiring public companies to disclose the ratio of the compensation of its chief executive officer (CEO) to the median … Continue reading SEC Adopts Rule for Pay Ratio Disclosure
On August 6, 2015, the Securities and Exchange Commission (SEC) issued a No Action Letter to Citizen VC, Inc. (CVC) that appears to have further loosened the prior No Action … Continue reading Substantive Pre-Existing Relationships Possible in On-Line Private Placements
The Securities and Exchange Commission (“SEC”), has approved the adoption of new FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) to address conflicts of interest relating to the publication and … Continue reading SEC Approves New FINRA Debt Research Analysts & Report Rules
The Financial Industry Regulatory Authority, Inc. (“FINRA”) has filed a proposed rule change to amend FINRA Rule 2210 (Communications with the Public) with the Securities and Exchange Commission (“SEC”). The proposed … Continue reading FINRA Proposes Change to Rule 2210 (Communications with the Public)
The Securities and Exchange Commission (“SEC”) announced a whistleblower award of more than $3 million to a company insider whose information helped the SEC crack a complex fraud. The multi-million … Continue reading SEC Awards Whistleblower Over $3 Million Award
Securities and Exchange Commission Chair Mary Jo White led a multi-agency event on July 15 to support the Military Consumer Protection Day 2015, highlighting how service members can best protect … Continue reading SEC Chair May Jo White Participates in Military Consumer Protection Day
In her opening remarks at the 2015 National Compliance Outreach Program for Broker-Dealers SEC Chair Mary Jo White set the tone for the program, and addressed a number of issues. Most significant was her attempt … Continue reading SEC Chair Mary Jo White Sets the Tone at the Top
Senators Jack Reed (D-RI) and Chuck Grassley (R-IA) introduced bipartisan legislation in the Senate to give the Securities and Exchange Commission (SEC) another tool to crack down on violations of securities laws … Continue reading Bill Introduced to Significantly Increase SEC Penalties
The SEC Office of Compliance Inspections and Examinations (OCIE) recently issued a Risk Alert regarding the Targeted Industry Reviews and Examinations Initiative related to retirement accounts. The Risk Alert noted … Continue reading SEC Launches Retirement Targeted Exam Initiative
The last 18 months has found the financial industry in the spotlight for cybersecurity breaches, and as a result, the SEC and FINRA are ramping up their expectations regarding cybersecurity for … Continue reading Financial Industry Cybersecurity Standards Not Modeled After Government Agencies, Thankfully …
The SEC is asking for comments on how new and novel exchange-traded products should be listed, marketed and traded, as part of an effort to potentially write new rules for the … Continue reading SEC Requests Comments on Exchange-Traded Products
FINRA Notice to Member 15-07 noted that the amendments to FINRA Rule 8311 will be effective August 24, 2015. In general, while the amendments to FINRA Rule 8311 eliminate duplicative … Continue reading Amendment to FINRA Rule 8311 Approved
Historically, the enforcement actions brought by the Securities and Exchange Commission (“SEC”) have focused more on fraud and misrepresentation, than books and records violations and not on compliance professionals. It appears … Continue reading SEC Enforcement Agenda Looks to Minor Rule Violations
Based upon the wide spread devastation caused by Hurricane Sandy, and the numerous other natural disasters such as tornadoes, flooding and wildfires that have occurred in the last few years, … Continue reading New Regulatory Guidance Challenges: Business Continuity Planning for the Financial Industry
Implementation On July 31, 2013, the Securities and Exchange Commission (SEC) announced amendments to Financial Responsibility Rules for Broker-Dealers (Release No. 34-70072; File No. S7-08-07). The amendments impact the net … Continue reading Amendments to Financial Responsibility Rules for Broker-Dealers Impact Net Capital Rules
SEC Comment Letter – JOBS Act – Crowdfunding Set forth below are our comments related to Title III of the JOBS Act. The JOBS Act focused on increasing American job … Continue reading SEC Comment Letter – JOBS Act – Crowdfunding
John M. Stahl, Esq., who is a freelance legal writer who is a graduate of Babson College and Vermont Law School, stated in a press release that he word on … Continue reading LeGaye Law Firm Quoted in Article
John F.Roth, SEC SEC Compliance, Regional Center Selection, posted a blog posted titled “Securities Law and Finder’s Fees in the EB-5 Field”, in which The LeGaye Law Firm’ s article … Continue reading The LeGaye Law Firm Cited in Article
Compliance Date for Delivery to Clients of the New Form ADV Part 2B Supplements Extended by SEC As a result of the efforts of the Securities Industry and Financial Markets … Continue reading Compliance Date for Form ADV Part 2B Extended by SEC
The Securities and Exchange Commission’s (SEC) position on the payment of finder’s fees to non-registered broker-dealers has been further clarified in a request for a No-Action Letter, which was denied … Continue reading SEC Further Limts Use of Finders Fees
After years of speculation regarding when the proposed changes to the Form ADV Part II would be implemented, the Securities and Exchange Commission (SEC) unanimously adopted the proposed changes on … Continue reading Form ADV Amendments Approved by the SEC
In response to the difficulties faced by the Securities and Exchange Commission (SEC) in 2009 related to the market crisis, the Ponzi schemes perpetrated by Bernard Madoff and Stanford Financial, … Continue reading SECs Expanded Enforcement Tool Box