FINRA recently proposed amendments to FINRA Rule 3110 (Supervision) to adopt a voluntary, three-year pilot program (Pilot Program) to allow member firms to conduct remote branch office inspections. In a nod to where things have headed since the onset of the Covid-19 pandemic (WFH and such), providing firms with the…
Our recent client alert discusses how U.S. financial services regulators are increasingly exploring what the metaverse, augmented reality (AR), and virtual reality (VR) mean for their registrants’ businesses and also for the means and methods of regulating them.
Back in April 2022, we wrote about the SEC killing the Dealer/Trader distinction. We also noted then that it would come as no surprise to see the SEC re-propose amendments to Exchange Act Rule 15b9-1. Just a few months later, the SEC has done just that. Rule 15b9-1 currently exempts…
On June 16, 2022, the U.S. Senate confirmed Jaime Lizárraga and Mark Uyeda as SEC Commissioners. Once seated, the agency will have a full slate of five commissioners for the first time in six months, following the departure of Commissioner Elad Roisman. Mark Uyeda, a long-time SEC staffer, rejoins the…
On May 9, 2022, the SEC extended the comment periods for proposed rulemaking on climate-related disclosures and reopened the comment period for proposed rulemaking relating to private funds and what it means to be an “exchange” under Exchange Act Rule 3b-16. Each of these proposals originally provided 30 days for…
Securities law enforcement entered the metaverse recently in the form of an emergency cease and desist order issued by the Texas State Securities Board against individuals and a company using NFTs to finance multiple metaverse casinos. Much like Wyatt Earp busting into the O.K. Corral, this one gets interesting. The…
The SEC Division of Examinations recently published its list of priorities for 2022. While it was a bit late compared to a typical year, the priorities letter provides a roadmap for firms to better understand where the Division will take its examination efforts over the coming months. Significant focus areas…
The SEC recently proposed rules that would greatly expand the Exchange Act definition of “dealer” and essentially kill the existing dealer/trader distinction long-recognized by the SEC. The likely outcome is that most proprietary trading firms will need to register with the SEC as dealers and become members of FINRA or…
On March 15, 2022, SEC Commissioner Allison Herren Lee announced she will not seek a second term once her current term expires in June of this year. The departure of Commissioner Lee, a Democrat-appointee, follows the January 2022 departure of Republic-appointee Commissioner Elad Roisman and sets the table for paired…
FINRA recently reminded firms of their obligation to execute marketable customer orders fully and promptly. While this seems fairly routine, what’s notable about the reminder is that “prompt” doesn’t necessarily mean what it used to. FINRA Rule 5310 (Best Execution and Interpositioning) requires a firm to “make every effort to…