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Compliance

Apr 27, 2021

“I Robot:” The SEC Evaluates the First Law of Robotics

One of the priorities announced in the 2021 Examination Priorities Report of the U.S. Securities and Exchange Commission’s Division of Examinations (“EXAMS”) is a review of robo-advisory firms that build client portfolios with exchange-traded funds (“ETF’s”) and mutual funds. EXAMS notes that these clients are almost entirely retail investors without investments large enough to support the costs of regular human investment advisers.» Read More

Apr 20, 2021

Red Flags and SARs: The SEC Warns Broker/Dealers on AML

On Monday, March 29, 2021, the Division of Examinations (“EXAMS”) of the U.S. Securities and Exchange Commission (“SEC”) issued a Risk Alert on “Compliance Issues Related to Suspicious Activity Monitoring and Reporting at Broker-Dealers.” EXAMS is concerned that broker/dealers and mutual funds are failing to meet their obligations as “financial institutions” subject to monitor and report to the Financial Crimes Enforcement Network (“FinCEN”) Division of the U.S.» Read More

Mar 09, 2021

Are You Covered? The Exposure of D’s and O’s for Diverse Reasons

In December 2020, NASDAQ submitted a proposed rule change to the U.S. Securities and Exchange Commission (“SEC”) to add a diversity requirement as a condition for listing on its electronic stock exchange. That proposal would require at least two “diverse” directors or officers and periodic disclosure of aggregate data on gender preference, race, ethnicity, and sexual orientation.» Read More

Jan 14, 2021

Taming the Elephants: SEC Jumbo Trader Risk Alert

On December 16, 2020, the U.S. Securities and Exchange Commission’s (“SEC”) Office of Compliance Inspections and Examinations (“OCIE,” since reorganized as a separate division of the SEC, i.e., the Division of Examinations [“DivEx”]) issued a Risk Alert entitled “Observations from Examinations of Broker-Dealers and Investment Advisers: Large Trader Obligations.”» Read More

Jan 12, 2021

In Defense of the Realm: The NDAA, Money Laundering, and Terrorist Financing

On New Year’s Day, January 1, 2021, the U.S. Senate voted 81 to 13 to override President Trump’s veto of the National Defense Authorization Act (“NDAA”), thus joining the House of Representatives, which had taken similar action four days earlier 322 to 87, so enacting the NDAA into law.» Read More

Oct 06, 2020

Commerce, Culture, and Compliance

Banking, at least since the passage of the Federal Reserve Act in 1913 and the creation of Federal Deposit Insurance under the Glass-Steagall Act of 1933 (FDIC insurance actually became effective January 1, 1934), has been seen (at least in popular portrayals in books and movies) as a rather staid business conducted in marble edifices by men (although that is changing) who were reserved and rather aloof.» Read More

Aug 19, 2020

Are You Ready? Preparing Your Business for a Paycheck Protection Program (PPP) Loan Audit

On March 29, 2020, as part of a massive response to the economic distress inflicted upon businesses and working people in the United States due to the “shutdown” of the economy as part of the efforts to contain the impact of the coronavirus (“COVID-19”), Congress passed and the President signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).» Read More

Dec 11, 2018

The Expanding Scope of the Committee on Foreign Investment in the United States

In 1975, President Gerald Ford, by Executive Order, created an interagency committee, the Committee on Foreign Investments in the United States (“CFIUS”), to review national security implications of investments by foreigners in U.S. businesses.  CFIUS is chaired by the Secretary of the Treasury.» Read More