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Legislation Creating Small Business Advocacy within the SEC Heading to the President’s Desk

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On December 10, the SEC Small Business Advocate Act was approved by the Senate, clearing the way for signature by the President. The measure, which creates an advocacy office for the interests of small businesses within the SEC, came out of the House, where it was first proposed back in... Read More

Topics: Broker-Dealer, Consumer Protection, Public Companies and Securities

House Passes Creating Financial Prosperity for Businesses and Investors Act

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On Monday, the House of Representatives passed the Creating Financial Prosperity for Businesses and Investors Act (H.R. 6427) (the “Act”) by a vote of 398 to 2. The Act is actually a compilation of six measures that were previously considered and passed by the House in 2016, but that have... Read More

Topics: Broker-Dealer, Consumer Protection, Crowdfunding, Investment Advisers, Private Equity

SEC Exams Looking for Whistleblower Violations

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SEC staff in the Office of Compliance Inspections and Examinations are examining compliance with key whistleblower provisions arising out of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The staff is examining registered investment advisers and registered broker-dealers, reviewing, among other things, compliance manuals, codes of ethics, employment agreements,... Read More

Topics: Broker-Dealer, Employment, Executive Compensation, Investment Advisers, Litigation

Bipartisan Members of Congress and NASAA Declare Support for SEC’s Proposed Modernization of Rules to Facilitate Intrastate Crowdfunding Offerings

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On October 7, 2016, a bipartisan contingent of members of the U.S. House of Representatives and the president of the North American Securities Administrator Association (NASAA) coordinated a duel message to the SEC regarding its rule amendments to accommodate intrastate crowdfunding. The specific SEC rules at issue are Rules 147... Read More

Topics: Broker-Dealer, Crowdfunding

CFPB’s Structure Ruled Unconstitutional but it Avoids Being Dismantled

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On October 11, 2016, the United States Court of Appeals for the D.C. Circuit issued its highly anticipated opinion in PHH Corp., et al. v. CFPB, holding that the Consumer Financial Protection Bureau’s (CFPB) structure is unconstitutional. The underlying case arose following a CFPB administrative enforcement action against PHH Corp.... Read More

Topics: Banking, Broker-Dealer, CFPB, Consumer Protection, Litigation

SEC’s Proposed Rules for Expedited Settlement May Impact Long-Standing Exception for Firm Commitment Offerings

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The SEC has agreed to propose rules that would shorten the standard settlement cycle for most broker-dealer transactions from three business days after the trade date (also known as T+3 settlement) to two business days after the trade date (also known as T+2 settlement). Proponents of shortening the settlement period... Read More

Topics: Broker-Dealer, Public Companies and Securities

CFPB Proposes Controversial Rule to Limit Use of Arbitration Agreements

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On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) announced a long-awaited and highly-controversial proposed rule that, if adopted, would prohibit certain financial services companies from banning consumer class actions as part of mandatory pre-dispute arbitration agreements and require companies to report certain arbitration data to the CFPB.  If... Read More

Topics: Banking, Broker-Dealer, CFPB, Consumer Protection, Litigation