On October 26, 2021, the U.S. Securities and Exchange Commission’s Division of Examinations (Exams) issued a Risk Alert regarding mutual funds and exchange-traded funds intended to “highlight risk areas and assist funds and their advisers in developing and enhancing their
Enforcement Highlights
Enforcement Highlights, published by Faegre Drinker Biddle & Reath, focuses on regulatory enforcement developments primarily in the financial services sector. The blog covers topics such as SEC examinations and priorities, compliance challenges for chief compliance officers, enforcement actions related to investment advisory firms, municipal bond fraud cases, and legal issues surrounding cryptocurrency exchanges. It provides updates and analysis on regulatory risks, disclosure requirements, supervisory liability, and anti-money laundering enforcement, helping legal and compliance professionals stay informed about enforcement trends and regulatory expectations.
Latest from Enforcement Highlights - Page 2
The SEC’s Renewed Focus on Accounting Misconduct
By Jim Lundy
Two recent enforcement actions by the U.S. Securities and Exchange Commission (SEC), including a recent settled action against Kraft Heinz Co. (“Kraft”), underscore the agency’s renewed and continuing focus on accounting and financial reporting misconduct. Two weeks ago, the SEC…
Is SEC “Regulation by Enforcement” for the Digital Asset Industry Next Up?
By Jim Lundy
Cryptocurrencies are one of the fastest growing asset types worldwide. Cryptocurrencies, as an asset class, total over $1.5 trillion in market capitalization. With the rapid growth of this asset type, SEC Chair Gary Gensler shared his views for the SEC…
Robinhood’s $70 Million FINRA Penalty: Growing Pains, Reliance on Technology and Push to Offer New Products
By Jim Lundy
Robinhood, “an introducing broker-dealer that provides commission-free trading to retail customers through its website and mobile applications,” recently agreed to pay a record-setting amount of $70 million — consisting of a $57 million fine and more than $12.5 million in…
SPAC Attack: The SEC Charges a SPAC for Failure to Launch
By Jim Lundy
On July 13, 2021, the SEC announced charges against Stable Road Acquisition Company (“Stable Road”), its sponsor, SRC-NI, its CEO, Brian Kabot, Stable Road’s proposed merger target Momentus Inc.(“Momentus”), and Momentus’s founder and former CEO Mikhail Kokorich (“Kokorich”) for “misleading…
Cybersecurity Enforcement Trends: A Fraught New Reality for ‘Victims’ of Cyberattacks
By Jim Lundy
Partners Peter Baldwin and Bob Mancuso published “Cybersecurity Enforcement Trends: A Fraught New Reality for ‘Victims’ of Cyberattacks.” This article in the New York Law Journal discusses how regulators have shifted their focus from data breach notifications to overall cybersecurity…
“Independence-Day” Malware and Managing the (Beach) Risks of Jaws
By Jim Lundy
In the spirit of our previous Holiday film blogs, we present for your viewing pleasure (and background research) the following Independence Day films for your (re)viewing pleasure. Both deserve renewed attention in light of: The SEC’s recent Solar Winds-Cybersecurity-related events,…
SEC Chairman, Gary Gensler, Seeks to “Freshen Up” Restrictions on Executive Stock Trading Plans under Rule 10b5-1
By Jim Lundy
Upcoming Changes to Rule 10b5-1: The SEC is seeking to propose four key changes to executive stock trading plans under Rule 10b5-1 in October. Its Chairman, Gary Gensler, reported that the SEC is considering “freshen[ing] up Rule 10b5-1 after twenty…
Chair Gensler Appoints NJ AG SEC Enforcement Director
By Jim Lundy
On Tuesday, the U.S. Securities and Exchange Commission (“SEC”) announced that Gurbir Grewal will be the Director of the Division of Enforcement, effective July 26, 2021. Grewal has been the Attorney General of New Jersey since 2018. Grewal’s appointment follows…
SEC “Sweep” of Public Companies’ & Registrants’ Responses to the SolarWinds Cyberbreach
By Jim Lundy
As publicly reported late last week, the Securities and Exchange Commission’s Division of Enforcement (SEC) sent voluntary requests for information to a range of public companies and investment firms seeking voluntary disclosure of information related to last year’s SolarWinds cyberattack.…