• This is a reminder that May 11, 2018 is the deadline for implementing new Financial Crimes Enforcement Network (FinCEN) requirements under the Bank Secrecy Act. The requirements apply to a wide swathe of financial institutions, including securities broker-dealers, banks, mutual funds, and futures commission merchants and introducing brokers in commodities.  These enhancements to anti-money laundering programs (AML) are often referred to as “Customer Due Diligence” (CDD) requirements.

  • Joseph P. Facciponti attorney profile image

    On February 21, 2018, the SEC issued new guidance for public companies regarding the disclosure of material cyber risks and incidents affecting their businesses.  The new guidance updates and expands on guidance issued in October 2011 by the SEC’s Division of Corporate Finance,  which advised that although no rule explicitly mandates cybersecurity disclosures, cyber risks and incidents could nonetheless be sufficiently material to investors to warrant disclosure in a company’s public filings. The new guidance is similarly non-binding but nonetheless addresses how disclosure of material cyber risks and incidents may be required as part of a company’s existing disclosure obligations. Here are five takeaways from the new guidance.

  • Paris Hilton, Floyd Mayweather, Jamie Foxx and other celebrities have all recently promoted Initial Coin Offerings (ICOs) to their social media followers.  But as celebrity promotion and endorsement of ICOs and other investments gain steam, the Securities and Exchange Commission is reminding them to heed federal securities laws.

  • Securities industry participants should be well-prepared for the introduction of a shortened settlement period for most broker-dealer securities transactions.[1]  Effective on September 5, 2017, amended Exchange Act Rule 15c6-1 prohibits a broker-dealer from effecting or entering into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than T+2, unless otherwise expressly agreed to by the parties at the time of the transaction.[2]  As the SEC has explained: “The amended rule [applies] the T+2 settlement cycle to the same securities transactions currently covered by the T+3 settlement cycle.  These include transactions for stocks, bonds, municipal securities, exchange-traded funds, certain mutual funds, and limited partnerships that trade on an exchange.”[3]

  • McMAHON AT 30
    Securities Arbitration Commentator | (06/07/2017)

    Ted Krebsbach comments on his role in landmark Supreme Court Shearson/American Express v. McMahon ruling as Securities Arbitration Commentator looks back 30 years later.

  • The SEC has instituted administrative proceedings against Wilson-Davis & Company (WDCO), a Utah broker-dealer, and certain associated persons for, among other things, improperly claiming the “bona- fide market making” exception to the requirement in Rule 203 of Regulation SHO to obtain a “locate” of stock before effecting short sales.