May 29, 2013
New SEC Commissioners Nominated
On May 21, 2013 President Obama nominated two senior senate aides to the SEC. If approved, Kara M. Stein, an aide to Jack Reed (D-RI) will replace Elisse B. Walter and Troy A. Piwowar, chief Republican economist on the Senate Banking Committee will replace Troy A. Paredes.
May 3, 2013
Contact Us
If you have any questions regarding Broker-Dealings feel free to contact Marlon Q. Paz at paz@xlo3.wpengine.com.
May 3, 2013
Changes at the SEC
On May 1, the SEC announced that Carlo V. Di Florio, Director of the National Exam Program was stepping down and that Andrew Bowden was named as his successor. http://www.sec.gov/news/press/2013/2013-80.htm…
May 2, 2013
When is Crowdfunding Not Crowdfunding?
The answer to this question is when its done under §201 of the JOBS Act. On March 26, almost a full year after the JOBS Act was signed into law, the SEC issued a no-action letter FundersClub Inc. and FundersClub Management LLC . (“FundersClub”) FundersClub is a venture capital fund adviser. It manages venture capital funds and operates a website. Once FundersClub has identified start-up companies, it enters into an agreement with the company to raise a target amount. This is where the website comes into play. Once the agreement is reached with the start-up FundersClub post information provided by the company on its website. The information is available to FundersClub members all whom must be accredited investors. Does any of this sound familiar?
May 2, 2013
About Broker Dealings
Broker Dealings A Broker-Dealer Law Blog sm is a blog published by Seward & Kissel LLP that reviews regulatory and legal events of interest to attorneys, compliance officers, executives and other participants in the broker dealer industry. If you have any questions regarding Broker-Dealings feel free to contact…
February 27, 2013
SEC No-Action Relief for Broker-Dealers Relying on Registered Investment Advisers for Anti-Money Laundering Obligations
The SEC has extended a former no-action letter position that permitted broker-dealers to rely on SEC registered investment advisers to perform its customer identification obligations for shared customers. The former position allows broker-dealers to rely on certain financial institutions to meet customer identification obligations under Rule 17a-8 of the Securities Exchange Act of 1934 as long as the institution is subject to an anti-money laundering program regulated by a federal regulator.
February 27, 2013
FINRA 2013 Examination Priorities
On January 11, 2013, FINRA released its 2013 examination priorities letter. The letter identifies four primary categories as the focus of FINRA’s upcoming examinations and enforcement efforts – Business Conduct and Sales Practice Priorities, Insider Trading, Financial and Operational Priorities, and Market Regulation Priorities. Within…
February 22, 2013
SEC 2013 Examination Priorities
On February 21, 2013 the SEC released its 2013 examination priorities. The SEC states that with respect to broker-dealers it is going to continue to focus on sales practice/fraud, trading, capital, and AML. New issues of concern for the examination process are: the market access rule,…
January 28, 2013
2013 FINRA Exam Priorities
On January 11, 2013, FINRA released its 2013 examination priorities letter. Not surprisingly, FINRA will continue to prioritize core regulatory areas such as AML compliance and insider trading. FINRA will also continue to focus on suitability and complex products, highlighting in the letter FINRA’s recently revised suitability rule, and adding business development companies (“BDCs”) and closed-end funds to its list of complex products. FINRA warns that BDCs expose investors to significant market, credit and liquidity risks and the newer “non-traded BDC funds” can limit investors’ exit opportunities to “periodic share repurchases by the BDC at high discounts.” FINRA also warns that some closed-end funds are returning capital to maintain high distribution rates, causing the fund to trade at high premiums compared to the fund’s NAV.