Broker-Dealer

The Securities and Exchange Commission’s Division of Examinations recently published its 2024 Examination Priorities, which is a report intended to inform investors and registered entities about the primary risks, examination topics and areas of focus for the upcoming year.

These examinations will place particular emphasis on emerging risks which could impact investors and the financial markets while also addressing ongoing areas of concern.

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The Securities and Exchange Commission (SEC) adopted changes to its rules governing the beneficial ownership of stocks, shortening the reporting timeline for certain investors, among other changes. The rule revisions align with the SEC’s previously announced efforts to adapt long-standing requirements to modern marketplace conditions.

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The U.S. Securities and Exchange Commission obtained a preliminary injunction in federal court freezing the assets of and granting additional emergency relief against Legend Venture Partners LLC, a New York City-based unregistered broker-dealer, in connection with a fraudulent scheme to sell interests in private companies prior to its initial public offering. Read on for more details. Read on »

The Federal Trade Commission brought action against a Florida-based online business that offered allegedly fraudulent real estate investment training targeted to primarily Spanish-speaking consumers. Read on for more details. Read on »

The U.S. Supreme Court issued a unanimous decision in Slack Technologies, LLC v. Pirani, holding that, under Section 11 of the Securities Act of 1933, plaintiffs must plead and prove that they purchased securities that were traceable to the registration statement that plaintiffs claim contained a material misstatement or omission. Read on for more details. Read on »

The Securities and Exchange Commission finalized its rule amendment removing references to credit rating from existing exceptions provided in Rule 101 and Rule 102 of Regulation M, which consists of rules that prohibit activities that could artificially influence the market for offered securities. Read on for more details. Read on »

The Securities and Exchange Commission announced charges against HSBC Securities (USA) Inc. and Scotia Capital (USA) Inc. for “widespread and longstanding” failures by both firms and their employees to maintain and preserve electronic communications. Read on for more details. Read on »

FINRA announced a targeted examination of member firms that are engaged in retail communications about crypto asset products and services. FINRA is requiring members to produce any communications that were distributed by the member firm or its affiliates on its behalf, which refer to, relate to, or concern a crypto asset or service involving the transaction or holding of a crypto asset. Read on for more details. Read on »

In SEC v. Cochran, a case coming from the Fifth Circuit, the respondent (Cochran) is asking the court to determine whether a federal district court has jurisdiction to hear a suit in which the respondent in an ongoing administrative proceeding seeks to enjoin that proceeding.

The respondent also seeks to have the high court determine the constitutionality of administrative law judges (ALJ) as executive officers and in-house adjudicators.

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Nate Chastain, a former executive for non-fungible tokens (NFTs) marketplace OpenSea, was charged with insider trading by federal authorities in June. Now Chastain is calling for the charges to be dropped, arguing NFTs are not subject to the securities and commodities laws on which the charges are based.

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