Posts from March 2021.

In a March 15, 2021 address to the Center for American Progress, SEC Acting Chair Lee was clear:

No single issue has been more pressing for me than ensuring that the SEC is fully engaged in confronting the risks and opportunities that climate and ESG pose for investors, our financial system, and our economy.

That’s been apparent from the steady stream of climate and ESG-focused initiatives she has been announcing since January.  Her reasoning is that because many investors (and indeed asset managers and other market participants) think these issues are significant, then they are:

On March 4, FINRA issued a Regulatory Notice warning member firms not to fall for phishing scam preying on compliance fears.  The scam uses a phony email address, supports@finra-online.com, demanding an immediate response to an “attached report” of “regulatory non-compliance.”  FINRA doesn’t have a “finra-online” domain and its gTLD is “.org” not “.com”.

Regulatory Notice 21-08 (Mar. 4, 2021) is here.

Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Tom is licensed in Tennessee ...

On March 4, Acting Chair Allison Herren Lee announced the creation of a “Climate and ESG Task Force” of 22 members from across the Enforcement Division:

Consistent with increasing investor focus and reliance on climate and ESG-related disclosure and investment, the Climate and ESG Task Force will develop initiatives to proactively identify ESG-related misconduct.  The task force will also coordinate the effective use of Division resources, including through the use of sophisticated data analysis to mine and assess information across registrants, to identify potential ...

The U.S. Securities and Exchange Commission (“SEC”) released its 2021 Examination Priorities on March 3.  The Examinations group – elevated last December to Division status (formerly the Office of Compliance Investigations and Examinations (“OCIE”)) --  covered the list of perennial concerns.  The 2021 priorities include some new subjects, however, reflecting the policy emphasis of the Biden administration.

“This year, the Division is enhancing its focus on climate and ESG-related risks by examining proxy voting policies and practices to ensure voting aligns ...

Posted in: COVID-19, OCIE, SEC

The price of Bitcoin recently topped $57,000.  New York’s Attorney General issued an Investor Alert on Virtual Currency Risks, as did the SEC’s Division of Examinations. The SEC’s “crypto-mom,” Commissioner Hester Peirce has been speaking on it daily, and Chair-nominee Gensler touches on it in his March 2 remarks before the Senate Banking Committee.

SEC Chair Nominee Gary Gensler’s prepared remarks for his March 2 hearing before the Senate  Banking Committee indicate he will focus on FinTech:

Markets—and technology—are always changing. Our rules have to change ...

The price of Bitcoin recently topped $57,000.  New York’s Attorney General issued an Investor Alert on Virtual Currency Risks, as did the SEC’s Division of Examinations. The SEC’s “crypto-mom,” Commissioner Hester Peirce has been speaking on it daily, and Chair-nominee Gensler touches on it in his March 2 remarks before the Senate Banking Committee.

SEC Chair Nominee Gary Gensler’s prepared remarks for his Mar. 2 hearing before the Senate  Banking Committee indicate he will focus on fintech:

Markets—and technology—are always changing. Our rules have to change ...

In an SEC filing, Friday, February 26, Robinhood Financial and Robinhood Securities disclosed they are negotiating with FINRA, the SEC, and state regulators, attempting to settle investigations into options-trading and outages from March 2020.

The investigations focus on Robinhood’s options-trading approval processes and how the app displays cash and buying power to customers.  Similar issues were involved in the GameStop (“GME”) imbroglio earlier this year.  Congress and various regulators continue to examine the GME situation.

The Companies disclosed they have ...

Posted in: FINRA, SEC
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