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New SEC Rules Will Increase the Regulation of Private Fund Advisers

The U.S. Securities and Exchange Commission (SEC) recently adopted new rules and rule amendments under the Investment Advisers Act of 1940, as amended (the Advisers Act) that will increase the regulation of private fund...more

SEC Adopts Meaningless And Ambiguous "Reasonably Likely" Standard In New Cybersecurity Incident Disclosure Rules

The Securities and Exchange Commission yesterday adopted new rules requiring registrants to disclose on  Form 8-K any cybersecurity incident which they determine to be material.  The new Item 1.05 requires description of the...more

TripAdvisor Reports Approval Of Nevada Redomestication

In April, I wrote about a lawsuit challenging a proposal by TripAdvisor, Inc. to redomesticate from Delaware to Nevada.   TripAdvisor's stockholders were given the opportunity to vote on the proposal last week.  On Monday,...more

SEC Files Desist & Refrain Order Against Coinbase Alleging Failure To Qualify Staking Rewards Program

Yesterday, the California Department of Financial Protection & Innovation announced that it had issued a desist and refrain order against Coinbase, Inc. The order alleges that Coinbase's staking rewards program involved the...more

California Climate-Related Financial Risk Disclosure Bill Advances

I have been writing about a bill, SB 261, that would would require businesses to prepare and submit climate-related financial risk reports. On May 30, 2023, the bill passed out of the Senate on a 27-8 vote....more

Securities And Exchange Commission Amend Rules For Share Repurchase Disclosures

The Securities and Exchange Commission yesterday adopted amendments to its rules governing share repurchase disclosures.  The SEC first proposed changes to its rules in December 2021.  The SEC twice reopened the comment...more

California Bill Would Require Notice To The Attorney General 6 Months Before Making Any Purchase From A Grocery Store!

California Assemblymember  Brian Maienschein has introduced a bill, AB 853, that seemingly would impose a notification burden on just about anyone anywhere...more

Do Issuers Fail To File Form Ds Because They Fear Trolls?

A new paper ostensibly connects the dots between failing to file a Form D, as required by Regulation D, and "patent trolls".   A "patent troll" is a company, typically that does not produce any product or provide any service,...more

More Than Four Score Law Firms File Amicus Brief Opposing SEC Assault On Client Confidentiality

In several recent posts, I have discussed Covington & Burling LLPs opposition to an SEC subpoena demanding that the law firm "name names".   Now more than 80 law firms from across the country have filed an amicus brief...more

Covington's Substantial Investment In Protecting Client Confidences

As previously reported in this blog, the United States Securities and Exchange Commission is attempting to force the international law firm of Covington & Burling, LLP to identify hundreds of its publicly traded clients. ...more

Congress Enacts M&A Broker But What About George Babbit?

Those who made it to page 1,080 of H.R. 2617 (the "Consolidated Appropriations Act") will know that Congress has amended Section 15(b) of the Securities and Exchange Act of 1934 to exempt "M&A Brokers" from the requirement to...more

Was This The Least Transparent Report In SEC History?

Professor Alexander I. Platt at the University of Kansas School of Law has just released a draft of a forthcoming paper that takes the Securities and Exchange Commission to task for the lack of transparency in its...more

SEC Suit Against Covington & Burling Threatens More Than Attorney-Client Privileged Information

Yesterday, I wrote about the Securities and Exchange Commission's attempt to force the prominent law firm of Covington & Burling LLP.  In some discussions about the case, some have assumed that the concern is about...more

SEC Demands That Covington & Burling "Name Names"

Earlier this week, the United States Securities and Exchange Commission filed a complaint against one of the country's leading law firms - Covington & Burling LLP.  According to the complaint, "threat actors" associated with...more

Judge Orrick Rules A Decentralized Autonomous Organization May Be Sued As An Unincorporated Association

Gertrude Stein is famously quoted as having written, "There is no there there".  Although Ms. Stein intended a different meaning to the expression, the same statement might be used to describe a "decentralized autonomous...more

SEC Makes Claims But Provides No Data

Recently, Securities and Exchange Commission Commissioner Mark Uyeda recently expressed concern about the the Commission's belief system with respect to its proposed Regulation Best Execution...more

Commissioner Warns Of Looming Item 402 Letter Deficit, But George Eliot Provides An Answer

Earlier this week, the Securities and Exchange Commission adopted amendments to Rule 10b5-1 under the Securities Exchange Act of 1934 which provides affirmative defenses to trading on the basis of material nonpublic...more

Staff Says Some Non-GAAP Financial Disclosures Are Beyond Redemptive Disclosure

On St. Lucia's Day (December 13), the staff of the Securities and Exchange Commission published updates to its compliance and disclosure interpretations (CD&Is) with respect to non-GAAP financial measures.  The following new...more

NASAA Urges Congress To Codify M&A Broker Relief

Last week, the North American Securities Administrators Association sent a letter to U.S. Senate and House committee leaders expressing concern that the appropriations process will "may be used to advance provisions in the...more

Commissioner Uyeda Urges Questioning Of ESG Trend Sustainability

In recent remarks to the 2022 Cato Summit on Financial Regulation, Securities and Exchange Commissioner Mark Uyeda noted the uncertainty of both costs and benefits of ESG investing.  With respect to costs, Commissioner Uyeda...more

SEC Labels Accountant's Letter "Irrelevant" To Rule 506(c)

Rule 506(c) under the Securities Act of 1933 allows an issuer to solicit and generally advertise an offering exempt pursuant to Regulation D if...more

Could A "Red Wave" Wipe Out The SEC's Clawback Rules?

The Securities and Exchange Commission new "clawback" rules were approved on a divided vote.  The two Republican members of the Commission, Hester M. Peirce and Mark T. Uyeda voted against adoption.  Tomorrow's election will...more

Has The SEC Conflated Indemnification And Insurance?

Today's post continues the discussion of the SEC's recent adoption of rules requiring the securities exchanges to adopt listing standards requiring listed companies to develop and implement policies providing for the recovery...more

The SEC's Immensely Impracticable Impracticability Exception

This week's posts have been discussing the recent adoption by the Securities and Exchange Commission of rules requiring the securities exchanges to adopt listing standards requiring listed companies to develop and implement...more

The SEC's Tenuous, Tentative Case For Preemption

The Securities and Exchange Commission's last week adopted rules requiring the securities exchanges to adopt listing standards requiring listed companies to develop and implement policies providing for the recovery of...more

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