A recent ruling may raise the bar for the Securities and Exchange Commission (SEC) in charging registered investment advisers for omissions of potential conflicts and seeking disgorgement, giving the defense bar additional...more
5/21/2025
/ Appeals ,
Broker-Dealer ,
Disclosure Requirements ,
Disgorgement ,
Enforcement Actions ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Materiality ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Summary Judgment
Since the release of ChatGPT 3.5 in November 2022, public interest in artificial intelligence (AI) has surged in a classic example of a hype cycle. As with past technological breakthroughs, companies may be tempted to...more
8/6/2024
/ Advertising ,
Anti-Fraud Provisions ,
Artificial Intelligence ,
Civil Monetary Penalty ,
Corporate Counsel ,
Enforcement Actions ,
False Statements ,
Investment Advisers Act of 1940 ,
Investors ,
Machine Learning ,
Misleading Statements ,
Public Statements ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Technology Sector ,
Training
With the growing use of artificial intelligence (AI) in financial markets, broker-dealers and investment advisers need to pay attention to the risks posed by AI on firms’ compliance with federal securities laws. While machine...more
11/14/2023
/ Algorithms ,
Artificial Intelligence ,
Broker-Dealer ,
Compliance ,
Conflicts of Interest ,
Data Privacy ,
Discrimination ,
Financial Markets ,
Fraud ,
Investment Adviser ,
Machine Learning ,
Market Manipulation ,
Popular ,
Securities and Exchange Commission (SEC) ,
Software
The Final Rule issued under the Corporate Transparency Act (CTA) is, as forecast, a sweeping and significant update to the U.S. anti-money laundering laws, estimated to affect over 32 million entities by requiring new reports...more
10/12/2022
/ Beneficial Owner ,
Corporate Transparency Act ,
Exemptions ,
Federal Register ,
Final Rules ,
FinCEN ,
Foreign Corporations ,
Limited Liability Company (LLC) ,
Penalties ,
Securities and Exchange Commission (SEC) ,
Small Business