Category Archives: Securities Law

SEC Takes Aim at Unregistered Advisors in New Alert

Hoping to clean up the reputation of a profession that suffers from what seems like an unusual number of imposters and scam artists, the SEC has announced that it will be enlisting the help of investors to identify phony stock brokers and investment advisors. Four Ways to Check Your Broker’s HistoryIn a new alert aimed at retail investors, the SEC has asked that, whether they are considering a new advisor or have been working with the same one for decades, investors do a quick background check on the advisor’s background for red flags. Above all, SEC has warned investors to look out for unregistered “advisors” who have not been tested and validated by the SEC or its regulatory arm, FINRA. Once investors have conducted the background check, they may find it best to slow down their connection to the broker — or in extreme cases, contact the SEC about any irregularities in a broker’s registration or employment history.Doing a background check on….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , , | Leave a comment

Commodity Futures Trading Commission Orders Couple Who Pleaded Guilty in $11M Futures Trading Scam to Pay Restitution

The CFTC is ordering Lawrence/Laurence Hong, his wife Grace Hong, and their Pishon Holding LLC to pay over $1.25M in restitution for the misappropriation and fraudulent solicitation of futures contracts. The couple already pleaded guilty to related criminal charges last year, with Laurence sentenced to 180 months in prison and Grace to 72 months behind bars. According to the CFTC’s complaint, which it brought against the couple in 2017, the Hongs defrauded investors of more than $11M. They allegedly did this by fraudulently soliciting people at a church gathering, through a YouTube video, and via misrepresentations that a Pastor made about Laurence’s supposed record as a successful trader and how much money he oversaw. The couple is accused of giving these misrepresentations to the Pastor before the church gathering. The self-regulatory authority (SRO) also accused the Hongs of making false statements in solicitation materials, including that: 1) Pishon’s fund….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , , , , , , , , , | Leave a comment

FSB 2019 work programme

On 12 February 2019, the Financial Stability Board (FSB) published its work programme for 2019. The FSB’s work programme is split across five areas: addressing new and emerging vulnerabilities in the financial system: including more detailed work on FinTech, cyber resilience and non-bank financial intermediation; finalising and operationalising post-crisis reforms: including the development of safer derivatives markets, ending too-big-to-fail, and promoting resilient non-bank financial intermediation; implementation of reforms: including the monitoring of the implementation of the G20 reforms; evaluating the effects of reforms: ongoing evaluation work is centred around the fifth annual report on implementation and effects of the G20 financial regulatory reforms; and reinforcing outreach to stakeholders: including regional consultative groups to allow a range of authorities to exchange views on financial stability issues, alongside better engagement with external….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , | Leave a comment

Should Lawmakers be Banned from Participating on Public Company Boards? Not Necessarily

Following Democratic control of the House, a new resolution was passed in January as a means to limit lawmakers’ control over public companies. Specifically, the resolution amended the Rules of the House of Representatives to ban House lawmakers’ membership on public company boards, with exceptions for nonprofits and board positions that do not provide compensation. (H. Res. 1043). Other rules passed at the same time direct the House Committee of Ethics to address conflict of interest concerns arising from lawmakers’ participation in other company roles. (Andrea Vittorio, Bloomberg Law). Although a similar ban and exceptions have existed for members of the Senate, until now there were no equivalent rules for the House.The new rules are the response to an incident that occurred late last year, when Republican House member, Chris Collins, was indicted for insider trading, allegedly in connection with his position on the board of Innate Immunotherapies. (Rachel….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , , , , , , | Leave a comment

SEC Issues New Guidance on Diversity Disclosure Requirements

On February 6, 2019, the Securities and Exchange Commission released two Compliance and Disclosure Interpretations (CDIs) discussing disclosure requirements in instances where a director or board nominee self-identifies specific diversity characteristics, such as race, gender, ethnicity, religion, nationality, disability, sexual orientation and cultural background. Item 401(e) of Regulation S-K requires “a brief discussion of the specific experience, qualifications, attributes or skills that led to the conclusion that the person should serve as a director.” Item 407(c)(2)(vi) of Regulation S-K requires disclosure of how a company’s board (or nominating committee) implements policies that it follows with regard to the consideration of diversity in identifying director nominees. In new CDIs Questions 116.11 and 133.13, the SEC stated that, to the extent the board or nominating committee, in determining the specific experience, qualifications, attributes, or….. To continue reading this legal news please click Read full information...

Posted in Securities Law | Tagged , , , , | Leave a comment