Andrew Lom (US)

Firm/Organization: Norton Rose Fulbright

Blogs: Financial services: Regulation tomorrow

Latest Articles

Cryptocurrency exchange INX Limited intends to raise $130 Million through an IPO

By Andrew Lom (US) & Rachael Browndorf (US) on August 26, 2019

On August 19, 2019, INX Limited (together with its affiliates, “INX”) filed a Form F-1 with the Securities and Exchange Commission (“SEC”) stating their intention to raise up to approximately $130 million through a registered initial public offering (“IPO”). If approved by the SEC, this would be the first security token sale registered with the SEC. A Form F-1, required under the Securities Exchange Act of 1933 for foreign issuers to register securities that will…

Financial services: Regulation tomorrow

SEC and FINRA address digital asset custody issues

By Andrew Lom (US) & Rachael Browndorf (US) on July 11, 2019

The unique manner in which digital asset securities are issued, held and transferred makes them inevitably prone to unique concerns compared to traditional securities. As expected, these concerns have triggered conversation among market participants regarding whether and how traditional federal securities laws apply to novel digital asset securities and transactions. On July 8, 2019, the Division of Trading and Markets of the Securities and Exchange Commission and the Financial Industry Regulatory Authority (together, the “Staffs”),…

Financial services: Regulation tomorrow

SEC sues Kik for its US$100m ICO

By Andrew Lom (US) & Rachael Browndorf (US) on June 10, 2019

On June 4, 2019, the Securities and Exchange Commission (“SEC”) filed a complaint against Kik Interactive, Inc. (“Kik”), which owns and operates a mobile messaging application called Kik Messenger, in connection with its 2017 initial coin offering (“ICO”) that raised over $100 million; more than $55 million of which came from U.S. investors. The SEC alleges the tokens issued in the offering, called “Kin”, are securities (or at least were securities at the time of…

Financial services: Regulation tomorrow

SEC Adopts Regulation Best Interest Increasing Broker-Dealer Standards of Care and Disclosure Obligations

By Kevin Harnisch (US), Steven Howard (US), Andrew Lom (US) & Rachael Browndorf (US) on June 7, 2019

On June 5, 2019, the Securities and Exchange Commission (“SEC”) announced it had adopted a number of rulemakings and interpretations aimed at tightening the standards of care governing broker-dealers and investment advisers and clarifying the duties of broker-dealers and investment advisers in providing investment advice. Rulemaking The SEC issued two final rules: (i) the new Regulation Best Interest (“Regulation BI”) and (ii) the new Form CRS Relationship Summary disclosure requirement. Regulation BI Prior to the…

Financial services: Regulation tomorrow

SEC Urges Broker-Dealers and Investment Advisors to Evaluate their Cloud-Based Storage Security Settings

By Andrew Lom (US) & Rachael Browndorf (US) on June 5, 2019

The U.S. Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) recently noted that ineffective practices, policies, and procedures governing the use of third party cloud-based storage platforms could result in compliance issues under Regulations S-P (Safeguards Rule) and S-ID (Identity Theft Red Flag Rule). As a result, OCIE has issued a Risk Alert advising broker-dealers and investment advisors to implement and oversee security programs ensuring the protection of customer records and personally…

Financial services: Regulation tomorrow

No news is good news? The SEC may be undermining innovation in FinTech

By Andrew Lom (US), Rachael Browndorf (US) & Eric Ramirez (US) on May 15, 2019

On May 9, 2019, SEC Commissioner Hester Peirce delivered a speech at the Securities Enforcement Forum in East Palo Alto, California, discussing the SEC’s impact on the FinTech space and growth of the digital asset industry. Commissioner Peirce admitted her prior prediction, that the SEC would discourage the industry’s growth through hurried regulation and overenthusiastic enforcement action, was very wrong. While the SEC has stifled its growth, she remarked, this is not due to hasty…

Financial services: Regulation tomorrow

SEC issues first no-action letter for unregulated ICO

By Andrew Lom (US) & Rachael Browndorf (US) on April 10, 2019

On April 3, 2019, the Securities and Exchange Commission (“SEC”) issued its first no-action letter related to the offering and sale of digital tokens. The beneficiary is TurnKey Jet, Inc. (“TurnKey”) which proposes to offer and sell blockchain-based digital assets in the form of “tokenized” jet cards (“Tokens”). The no-action letter, which some see as a turning point in the digital asset regulatory space, is unlikely to provide much encouragement to other issuers desiring…

Financial services: Regulation tomorrow

Commissioner Peirce warns the SEC not to cast Howey’s net too wide

By Andrew Lom (US) & Rachael Browndorf (US) on February 15, 2019

On February 8, 2019, SEC Commissioner Hester Peirce delivered a speech at the symposium ”Protecting the Public While Fostering Innovation and Entrepreneurship: First Principles for Optimal Regulation.” Her remarks, entitled “Regulation: A View from Inside the Machine,” provide insight into how SEC regulators currently view certain technological innovations and how they interpret and apply the Howey test as to when something is an “investment contract,” and therefore a security, for purposes of the…

Financial services: Regulation tomorrow

US Federal and State legislators propose exempting certain digital tokens from securities laws

By Andrew Lom (US) & Rachael Browndorf (US) on January 10, 2019

On January 4, 2019, two Colorado senators introduced the “Colorado Digital Token Act,” a bill seeking to exempt digital tokens and cryptocurrencies from certain Colorado state securities laws. In filing the Colorado Digital Token Act, the senators proposed that digital tokens with a “primarily consumptive purpose” that are not marketed to be used for “speculative or investment purposes” should be exempt from certain state securities laws. The overall purpose of the proposed Colorado…

Financial services: Regulation tomorrow

SEC issues statement on digital asset securities issuance, investment and trading

By Andrew Lom (US) & Rachael Browndorf (US) on November 21, 2018

On November 16, 2018, the Securities and Exchange Commission (“SEC”) issued a statement on the application of federal securities laws to the issuance and trading of, and investment in, digital asset securities. While the statement encourages technological innovations that benefit investors and capital markets, it emphasizes that market participants must still adhere to federal securities laws when dealing with new technologies (such as blockchain and other distributed ledger technologies) in connection with digital asset securities.…

Andrew Lom (US)

Cryptocurrency exchange INX Limited intends to raise $130 Million through an IPO

SEC and FINRA address digital asset custody issues

SEC sues Kik for its US$100m ICO

SEC Adopts Regulation Best Interest Increasing Broker-Dealer Standards of Care and Disclosure Obligations

SEC Urges Broker-Dealers and Investment Advisors to Evaluate their Cloud-Based Storage Security Settings

No news is good news? The SEC may be undermining innovation in FinTech

SEC issues first no-action letter for unregulated ICO

Commissioner Peirce warns the SEC not to cast Howey’s net too wide

US Federal and State legislators propose exempting certain digital tokens from securities laws

SEC issues statement on digital asset securities issuance, investment and trading

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