On July 8, 2019, the SEC’s Division of Trading and Markets and FINRA’s Office of General Counsel issued a joint statement on broker-dealer custody of digital asset securities (“Joint Statement”). The SEC and FINRA have been discussing issues of custody related to tokens and digital assets for years. For example, issues surrounding the custody of digital assets have been continuously cited by the SEC as one of the reasons for the failure to approve a cryptocurrency ETF.

The SEC has imposed penalties on The Intercontinental Exchange, Inc. (ICE) and nine of its affiliates, including the New York Stock Exchange, for failing to promptly report a cyber intrusion under Regulation SCI. This enforcement action underscores the critical importance of timely cybersecurity reporting and regulatory compliance to maintain market integrity and investor confidence. Discover the key takeaways for investors navigating the evolving digital financial landscape.

The SEC, MSRB, and FINRA have announced the registration opening for their Compliance Outreach Program for municipal market professionals, scheduled for November 20-21, 2024, in Denver, Colorado. The event, offering both in-person and virtual attendance, provides an opportunity for municipal advisors and dealers to engage directly with regulatory staff on key issues including compliance challenges, examination priorities, and regulatory outlooks.

On May 1, 2024, the U.S. District Court for the Western District of North Carolina entered a final judgment against Martin A. Sumichrast for defrauding Stone Street Partners, LLC, a private fund he managed. The judgment highlights the critical importance of transparency, full disclosure, and due diligence in investment transactions. Investors are urged to be vigilant, conduct thorough assessments, and ensure regulatory compliance to protect their interests and avoid falling victim to fraudulent schemes.

Understanding the Free Writing Prospectus (FWP) is crucial for companies preparing for an Initial Public Offering (IPO) or other registered offerings. This comprehensive guide explores what an FWP is, who can use it, and its regulatory requirements. Learn how FWPs differ from traditional prospectuses and how they can be strategically used in marketing securities offerings while ensuring compliance with SEC rules.

In July 2023, the SEC finalized a rule requiring public companies to disclose material cybersecurity incidents under Item 1.05 of Form 8-K. This blog post explores the SEC's guidance on determining materiality, the risks of over-disclosure, and best practices for compliance. Companies must balance transparency with accuracy to effectively manage cybersecurity disclosures and uphold investor trust.

Public companies pivoting to new business models must avoid becoming “shell companies,” which triggers SEC restrictions and potential NYSE delisting. Learn how to strategically plan your pivot to stay compliant and avoid regulatory risks.

This blog examines Rules 801 and 802 of the Securities Act, which offer registration exemptions for Foreign Private Issuers (FPIs) conducting rights offerings, exchange offers, or business combinations. It highlights eligibility criteria, filing requirements, and the importance of equal participation for U.S. investors.

Creating a complete trading strategy is essential for long-term success. This blog outlines five key elements that should be part of every trader's plan, from understanding market context to setting risk levels and exit strategies.

Guidehouse Inc. and Nan McKay & Associates have agreed to pay a combined $11.3 million to settle allegations of violating the False Claims Act. The case involved cybersecurity failures that compromised sensitive information in New York’s Emergency Rental Assistance Program during the COVID-19 pandemic. This settlement highlights the critical importance of adhering to cybersecurity requirements in federally funded programs.