On March 18, 2024, the SEC announced two enforcement actions against investment advisers for so-called “AI-washing” and violations of the Marketing Rule. Using the playbook from the Enforcement Division’s “green-washing” cases in the ESG space, the SEC found that the
Cleary Enforcement Watch
News and Analysis Related to Global Enforcement, White-Collar, and Regulatory Trends and Developments
Blog Authors
Latest from Cleary Enforcement Watch
SEC Approves Amendments to Enhance Disclosure of Order Execution Information
On March 6, 2024, the Securities and Exchange Commission (“SEC” or “Commission”) adopted amendments to the disclosure requirements of Rule 605 of Regulation NMS for order executions of stocks listed on a national securities exchange.[1] The final rule…
FinCEN Tries Again . . . to Impose AML Requirements on Investment Advisers
On February 15, 2024, the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) released a notice of proposed rulemaking (the “Proposed Rule”)[1] that would impose anti-money laundering/countering the financing of terrorism (“AML/CFT”) compliance obligations on SEC-registered investment advisers (“RIAs”)…
Crypto & Digital Assets
The crypto space has witnessed significant activity over the last year and is expected to continue generating new litigation risks in 2024 and beyond. The volatility of cryptocurrency values, the complex nature of the technology, the lack of regulation, and…
Private Enforcement of ESG Issues
Environmental, Social and Governance (“ESG”) issues continue to be prevalent in the disputes space, and claimants are continuing to employ creative legal tools to hold companies accountable for their actions.…
2023 Year-in-Review: Developments and Trends in White Collar Enforcement Litigation
The following post was originally included as part of our recently published memorandum “Selected Issues for Boards of Directors in 2024”.
The Securities and Exchange Commission (SEC) and Department of Justice (DOJ) both accelerated their enforcement efforts in…
SDNY Announces Whistleblower Pilot Program For Individuals Who Self-Disclose Wrongdoing Involving Business Organizations
On January 10, 2024, the U.S. Attorney’s Office for the Southern District of New York (“SDNY”) announced the creation of the SDNY Whistleblower Pilot Program (the “Pilot Program”).[1] Under the Pilot Program, individuals who self-disclose certain criminal misconduct…
CFTC Publishes Proposed Guidance on Futures Exchanges’ Listings of Voluntary Carbon Credits and What this Means in the Context of Other Developments in this Market
On December 4, 2023, the Commodity Futures Trading Commission (“CFTC”) issued for public comment proposed guidance regarding the listing by designated contract markets (“DCMs”) of voluntary carbon credit (“VCC”) derivative contracts (the “Proposed Guidance”). …
Congress Passes Foreign Extortion Prevention Act to Prosecute Corrupt Foreign Officials
On December 14, 2023, Congress passed the Foreign Extortion Prevention Act (“FEPA”) with bipartisan support as part of the 2024 National Defense Authorization Act (“NDAA”). …
SEC Announces FY 2023 Enforcement Results with Second-Highest Penalties on Record
On November 14, the Securities and Exchange Commission announced its enforcement results for the 2023 fiscal year,[1] with case numbers up from fiscal year 2022 and monetary sanctions at the second highest level in the agency’s history, though down…