News & Analysis as of

Enforcement Actions Retail Investors

Hogan Lovells

Enforcement is alive and well, despite changes to CFTC referral policy

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The Commodity Futures Trading Commission (CFTC) issued an advisory regarding criminal referrals to the Department of Justice (DOJ) that de-emphasizes strict liability. Criminal enforcement of referrals will continue for...more

Proskauer - The Capital Commitment

SEC Regulation in a Non-Regulatory Environment

With Paul Atkins as the new SEC Chair, the agency’s priorities have shifted away from many of the aggressive policies of former Chair Gensler. The first four months of the Republican controlled SEC saw a dramatic shift in the...more

Ropes & Gray LLP

SEC Speaks 2025: Key Takeaways from Division of Enforcement Panels

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The SEC’s Division of Enforcement intends to remain a “cop on the beat,” and will refocus on traditional core enforcement areas, such as insider trading, accounting and disclosure fraud, market manipulation, and breaches of...more

Venable LLP

SEC's New Cyber and Emerging Technologies Unit to Replace Crypto Unit and Focus on Fraud, AI, Social Media, and Hacking in...

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Recently, the Securities and Exchange Commission announced the creation of a Cyber and Emerging Technologies Unit (CETU), a group of 30 fraud specialists and attorneys spread across the SEC's offices around the country to...more

Latham & Watkins LLP

SEC Staff Clarifies That Meme Coins Are Not Securities

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The Staff stated that most meme coins are not subject to federal securities laws or SEC fraud enforcement; who will oversee meme coins remains an open question. On February 27, 2025, the Securities and Exchange...more

Morgan Lewis

Current Developments in SEC Enforcement for Private Funds and a Look Ahead 2024–2025

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In 2024, private funds continued to be a major focus for the US Securities and Exchange Commission (SEC), with an active docket of enforcement cases and rulemaking efforts. Although we expect 2025 to include a continued...more

Katten Muchin Rosenman LLP

The SEC Lives On Under New Leadership — What to Expect

President-elect Donald J. Trump nominated Paul Atkins to succeed Gary Gensler as Securities and Exchange Commission (SEC or Commission) Chair on December 4. Atkins was an SEC staff attorney under SEC Chairs Richard Breeden...more

Troutman Pepper Locke

FINRA’s First Disciplinary Action Targeting Firm’s Use of Social Media Influencers

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The Financial Industry Regulatory Authority’s (FINRA) Enforcement Division recently announced its first settlement involving a firm’s supervision of social media influencers. The respondent, M1 Finance LLC (M1), is a...more

Vedder Price

SEC Releases Enforcement Highlights for Fiscal Year 2023

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On November 14, 2023, the Securities and Exchange Commission (the “SEC” or the “Commission”) announced its enforcement results for fiscal year (“FY”) 2023, which ended on September 30, 2023. The SEC’s FY 2023 results...more

Skadden, Arps, Slate, Meagher & Flom LLP

JPEX Is Test Case for Hong Kong’s New Regulatory Regime for Virtual Asset Exchanges

Hong Kong regulators recently brought criminal enforcement actions against virtual asset trading platform JPEX and individuals associated with the platform. This case has become the first opportunity for local authorities to...more

Holland & Knight LLP

Prefabricated Facts: SEC Charges "Queen of Mobile Homes," Others for Years-Long Scheme

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A recent enforcement action from the Fort Worth Regional Office of the SEC reminds one of the agency's investor-protection mission and continued focus on those who deceive retail investors in the private offer and sale of...more

Bilzin Sumberg

SEC’s Regulatory Authority over Crypto Assets Questioned

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The regulatory authority of the U.S. Securities and Exchange Commission (“SEC”) over the cryptocurrency industry has recently been challenged on a couple of fronts. One involves a lawsuit filed by the SEC against a Utah-based...more

Oberheiden P.C.

What Should You Expect, Do, and NOT Do During a FINRA Investigation?

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Financial Industry Regulatory Authority (FINRA) investigations present significant risks for broker-dealers. Not only can FINRA take enforcement action—including the imposition of penalties and barring broker-dealers from the...more

Blank Rome LLP

Regulatory Update and Recent SEC Actions - April 2023

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REGULATORY UPDATES - Recent SEC Leadership Changes - On January 10, 2023, the Securities and Exchange Commission (the “SEC”) announced the appointment of Cristina Martin Firvida as director of the Office of the Investor...more

Katten Muchin Rosenman LLP

SEC Delays Enforcement of Rule 15c2-11 Compliance

In 2021, the Securities and Exchange Commission (SEC) took the industry off-guard by announcing its new position that Rule 15c2-11 of the Securities Exchange Act of 1934 (Rule) and its amendments apply to fixed-income...more

Orrick, Herrington & Sutcliffe LLP

SEC charges companies for offering and selling unregistered crypto asset securities

On January 12, the SEC filed a complaint in the U.S. District Court for the Southern District of New York against two companies (collectively, defendants), alleging that they were involved in the unregistered offer and sale...more

Oberheiden P.C.

Online Cryptocurrency Promotion: What Athletes, Celebrities, and Other High-Profile Individuals Need to Know

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Online cryptocurrency promotion—and promotion on social media in particular—has garnered national media attention in recent months. First, the U.S. Securities and Exchange Commission (SEC) announced that it had entered into a...more

Goodwin

CFTC Attempts to Extend Liability to DAO Participants

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In a first of its kind enforcement action, the Commodity Futures Trading Commission (“CFTC”) is attempting to hold participating members of a decentralized autonomous organization (“DAO”) liable for alleged violations of the...more

Seward & Kissel LLP

SEC Files First Reg BI Action Against Broker-Dealer

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On June 15, 2022, the Securities and Exchange Commission (“SEC”) filed a complaint against California-based broker-dealer Western International Securities, Inc. (“Western”) alleging violations of Regulation Best Interest...more

Goodwin

SEC Brings First Ever Regulation Best Interest Litigation Against Broker-Dealer and Its Personnel

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The U.S. Securities and Exchange Commission recently charged a broker-dealer and five of its registered representatives with violating Regulation Best Interest (“Reg. BI”) related to recommendations and sales of an unrated,...more

Goodwin

Newly Appointed Federal Watchdogs Warn they are Focused on Private Funds

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Private funds can draw lessons about how to prioritize their compliance efforts and practices in response to a series of warnings by newly-appointed federal regulators of increased scrutiny, regulation, and enforcement...more

Kohrman Jackson & Krantz LLP

The Sec Had No Love For Blockfi This Valentine’s Day

The Securities and Exchange Commission (SEC) has not hesitated to conclude that crypto assets are securities subject to the Securities Act of 1933, but with BlockFi, the SEC went a step further and, for the first time with...more

A&O Shearman

UK Regulator Issues Statement on Extension of Exemption for UCITS From PRIIPs Disclosure Requirements

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The U.K. Financial Conduct Authority has published a statement in which it confirms that it will amend the Technical Standards and related Handbook provisions to align with the extended exemption from the requirements of the...more

BCLP

Heads Up! Your Form CRS Grace Period Has Ended: The SEC Drops the Hammer on 27 Firms for Compliance Failures with Form CRS Filing...

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In case you were wondering if you can still push off finalizing your Form CRS filing, posting it on your website and delivering it to clients, the SEC has read your mind and answered loudly: no more! On Monday, the SEC...more

Troutman Pepper Locke

Investment Management Update - June 2021

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The Office of the Chief Accountant of the SEC’s Division of Investment Management periodically issues “Dear Chief Financial Officer” letters to help registered investment companies, business development companies (BDCs), and...more

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