Recent Posts

And Then There Was One-the Updated Box Score of FCPA Settlements from the Nigerian Bribery Scandal
Posted on 9 Jul 2010 by Thomas Fox

Both the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) announced the agreement by the Dutch company, Snamprogetti Netherlands BV, (Snamprogetti) to pay a $240 million criminal penalty to the DOJ to resolve charges related... Read More

SEC Adopts Final Rule Regarding Risk Management Controls for Broker-Dealers with Market Access
Posted on 29 Sep 2011 by Morrison and Foerster LLP

by Melissa Beck Rule 15c3-5 is a new rule that will effectively prohibit broker-dealers with market access from providing customers with unfiltered access to an exchange or alternative trading system ("ATS"). Excerpt: On November 3, 2010... Read More

SEC Votes on Pay to Play
Posted on 30 Jun 2010 by Doug Cornelius

At Wednesday's Open Meeting the Securities and Exchange Commission took up the discussion of their proposed rules on pay-to-play for investment advisers. The proposal is a new Rule 206 (4)-5 under the Investment Advisers Act. The Commission voted... Read More

SEC’s Whistleblower Annual Report
Posted on 1 Dec 2011 by Doug Cornelius

Dodd-Frank added Exchange Act Section 21F(g)(5) and requires that SEC's Office of the Whistleblower to report to Congress annually on the whistleblower program. It's due each October 30. I'm sure the SEC wanted to be in compliance, so they... Read More

SEC’s National Exam Program Overview
Posted on 21 Mar 2012 by Doug Cornelius

The SEC's Office of Compliance Inspections and Examinations ("OCIE") mission is to protect investors through its nationwide examination and inspection program. Examiners in Washington DC and in the SEC's 11 regional offices conduct... Read More

The SEC and Rating Agencies
Posted on 11 Oct 2011 by Doug Cornelius

The SEC examined all 10 firms registered Nationally Recognized Statistical Rating Organization (.pdf 23 pages) and found all 10 had "apparent failures". The SEC has requested remediation plans from each of the agencies within 30 days and... Read More

SEC Provides Guidance on “Super” Forms 8-K
Posted on 21 Sep 2011 by David N. Feldman

The SEC's Division of Corporation Finance issued some guidance with the staff's observations in its reviews of "super" Forms 8-K filed following reverse mergers. As we know, in 2005 the SEC adopted a rule requiring the filing within... Read More

When a Rose is not a Rose but an FCPA Violation
Posted on 6 Jul 2010 by Thomas Fox

We recently wrote about gifts and entertainment under the Foreign Corrupt Practices Act (FCPA). To view the prior article, click here . This week the Securities and Exchange Commission (SEC) announced an enforcement action involving Veraz Networks. The... Read More

This Week In Securities Litigation (March 12, 2010)
Posted on 18 Mar 2010 by Thomas O. Gorman

Capital Hill continued to debate market reform this week with the introduction of the Volker Rule bill in the Senate. SEC enforcement focused on resolving financial fraud and Ponzi scheme cases, while the appellate section at FINRA reversed a panel... Read More

New Issue Allocations and Distributions Rule Imposes Additional Restrictions on the Allocation of Initial Public Offerings of Equity Securities
Posted on 30 Jun 2011 by K & L Gates LLP

by Nicholas S. Hodge and Kenneth G. Juster Introduction "The Financial Industry Regulatory Authority ('FINRA') announced on November 29, 2010 that the Securities and Exchange Commission (the 'SEC') had approved new FINRA Rule 5131... Read More

Hot Topics for SEC Exams
Posted on 22 Mar 2012 by Doug Cornelius

As part of the SEC's new National Exam Program Overview , OCIE highlights six areas of focus for Investment Advisers: "[T]he Program has identified specific strategic areas on which to focus when examining firms.... In FY2012, focus areas... Read More

The SEC Overhaul
Posted on 8 Sep 2011 by Doug Cornelius

On July 11, 2011, the President issued Executive Order 13579 , "Regulation and Independent Regulatory Agencies," which states that independent regulatory agencies should promote the goals set forth in Executive Order 13563 of January 18,... Read More

A Split Decision for the SEC on Its SIPC Application
Posted on 16 Feb 2012 by Thomas O. Gorman

The SEC partially prevailed in a proceeding brought against the Securities Investor Protection Corporation or SIPC. The Court agreed with the Commission that the appropriate manner in which to seek an order compelling SIPC to file an application for... Read More

The SEC Action Against the NYSE: The Need to Ensure Fair Markets
Posted on 19 Sep 2012 by Thomas O. Gorman

When corporations selectively disseminate material non-public information to one group prior to making it publically available is a violation of Regulation FD, the selective disclosure unfairly disadvantages the investing public. When a corporate executive... Read More

Charges Brought in Social Media Scam
Posted on 5 Jan 2012 by Doug Cornelius

The Securities and Exchange Commission charged an Illinois-based investment adviser with offering to sell fictitious securities on LinkedIn. The SEC also issued two alerts to highlight the risks investors and advisory firms face when using social media... Read More