Category Archives: Financial Regulation

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Carl Fornaris to Speak at the Financial Markets Association’s 26th Annual Securities Compliance Seminar

Greenberg Traurig Shareholder  Carl A. Fornaris, co-chair of the Financial Regulatory and Compliance Practice, will speak at the Financial Markets Association’s (FMA’s) 26th Annual Securities Compliance Seminar on April 26 at the B Ocean Hotel in Fort Lauderdale. Fornaris will speak on the panel titled “Key 2017 Legislative and Regulatory Initiatives” and will review current developments … Continue Reading

Confidential Financial Information of Non-Party Customers Placed at Risk When Litigants Subpoena FINRA Enforcement Files

An increasingly common tactic among claimants’ lawyers in Financial Industry Regulatory Authority (FINRA) arbitrations is to issue subpoenas to securities regulators, including FINRA itself, calling for the production of investigative files. This is accomplished by asking the arbitration panel to issue a subpoena pursuant to FINRA Rule 12512 (or Rule 13512 in an employee versus … Continue Reading

Greenberg Traurig to Participate at the FIBA Anti-Money Laundering Compliance Conference

Greenberg Traurig is proud to sponsor and participate at the FIBA (Florida International Bankers Association) Anti-Money Laundering Compliance Conference March 6 – 8 at the InterContinental Miami. Rudolph W. Giuliani, chair of the firm’s Cybersecurity, Privacy and Crisis Management Practice and former New York City Mayor, will deliver the keynote address on how the 2016 … Continue Reading

President Trump Signs Executive Order Establishing “Core Principles” of Financial Regulation and Addressing the DOL Fiduciary Rule

On Friday, Feb. 3, 2017, President Trump signed an executive order entitled, “Core Principles for Regulating the United States Financial System.” While the Order was widely characterized as commencing a roll-back of financial regulations, including the Dodd-Frank Act and the Fiduciary Rule,[1] the text of the actual order is more modest.  It instead sets forth … Continue Reading

Federal Reserve Board’s Divisions of Research & Statistics and Monetary Affairs Issued Their First Research Paper on Blockchain Technology

Last month, the Federal Reserve Board’s Divisions of Research & Statistics and Monetary Affairs issued their first research paper on blockchain technology, entitled “Distributed Ledger Technology in Payments, Clearing, and Settlement.” The Report identifies both the opportunities and challenges entailed in widespread adoption of distributed ledger technology. The Report suggests that blockchain technology has the … Continue Reading

SEC’s Office of Compliance Inspections and Examinations Releases Annual Examination Priorities

On Jan. 12, 2017, the Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission (SEC) issued its annual Examinations Priorities for 2017 (Exam Priorities), which is available for download here.  As in past years, the Exam Priorities focus around three thematic areas, the first and the last of which are … Continue Reading

NYS Department of Financial Services Releases Revised Proposal Addressing Cybersecurity Requirements for Financial Institutions

On December 28th, 2016, the New York State Department of Financial Services (DFS or the Department) published a revised version of its proposed regulation governing cybersecurity requirements for all entities required to operate in New York under a license, registration, or similar authorization issued by the Department (the Revised Proposal). Its provisions are scheduled to … Continue Reading

Derivatives Update: What You Should Know As We Enter 2017

This year has been full of surprises in the global markets with Brexit, the Republicans’ win of the executive branch and continuing control of the legislative branch in the U.S. and the impact of the privatization of energy markets in Mexico. In this GT Alert, we are simply going to address two critical proposals and … Continue Reading

Elaine Greenberg to Speak at PLI Hedge and Private Funds Seminar

Elaine C. Greenberg, Greenberg Traurig shareholder, will speak at the Practising Law Institute (PLI) Program “Hedge and Private Fund Enforcement & Regulatory Developments 2016” in New York City on Dec. 1. Greenberg will be participating in the session titled “SEC Inspections and Examinations of Private Equity and Hedge Funds.” The seminar provides insights into current … Continue Reading

Banking Regulators Release Advanced Notice of Proposed Rulemaking on Enhanced Cyber Risk Management Standards

On Oct. 19, 2016, the Board of Governors of the Federal Reserve System (the Board), the Office of the Comptroller of the Currency (the OCC), and the Federal Deposit Insurance Corporation (the FDIC, and the three agencies collectively, the Agencies) jointly issued an advance notice of proposed rulemaking (the ANPR) soliciting public comment on enhanced … Continue Reading

Greenberg Traurig Hosts the Program ‘Emerging Issues in Banking, Consumer Finance, and FinTech Litigation’

On Oct. 25, please join Greenberg Traurig’s Class Action Litigation and Consumer Financial Services Litigation Practice Groups in the presentation titled “Emerging Issues in Banking, Consumer Finance, and FinTech Litigation” in our Silicon Valley Office or via Webinar. While the finance capitals of the world have traditionally been in places like New York, London, and … Continue Reading

New Proposed RIC Regulations

The Internal Revenue Service (the Service) issued guidance last month that will, practically speaking, make it slightly more difficult for entities to qualify as regulated investment companies (RICs) for federal income tax purposes. Under current law, an SEC registered investment company may qualify as a RIC only if, inter alia, (i) 90 percent of its … Continue Reading

CFPB Finalizes Notable Revisions to Regulations X and Z

On August 4, 2016, the Consumer Financial Protection Bureau (the “CFPB” or the “Bureau”) announced that it had finalized revisions to its regulations concerning the servicing of residential mortgage loans. The goal of the changes is to provide greater protections to mortgage borrowers, particularly their successors in interest, and to prevent borrowers from being wrongly … Continue Reading

Massachusetts Offers Policy Guidance on Investment Advisers’ Use of Robo-Advisers

As robo-advisers continue to grow in popularity with investors, especially millennial investors, at least one regulator is taking a closer look.  On July 14, 2016, Massachusetts Secretary of the Commonwealth William Galvin issued a policy statement addressing the use by investment advisers under his jurisdiction of third-party robo-advisers.  This follows a similar policy statement by … Continue Reading

SEC Share Class Sweep of Registered Investment Advisers Appears to be Underway

On July 13, 2016, the SEC’s Office of Compliance Inspections and Examinations (OCIE) announced its 2016 Share Class Initiative (the Initiative). The Initiative is focused on addressing the perceived risk that registered investment advisers may be providing conflicted advice to their clients when recommending investments in mutual fund share classes.  For example, OCIE staff is … Continue Reading

FSOC Report Targets Marketplace Lending

The Financial Stability Oversight Council (FSOC) issued its annual report at the end of June, the sixth since the FSOC began issuing reports under Dodd-Frank.  Notably, however, this was the first report to address the emergence of Fintech.  In particular, the FSOC highlighted distributed ledger systems and marketplace lending as developing sources of concern.  The … Continue Reading

SEC IM Guidance Update – Investment Company Business Continuity Plans

In connection with the Press Release announcing a Rule Proposal regarding adoption of written business continuity and transition plans by SEC-registered investment advisers (see our blog post on the topic), the Division of Investment Management also distributed a Guidance Update (No. 2016-04) discussing BCPs for registered investment companies (RICs).  RICs have been expected to address … Continue Reading

New SEC Rule Proposal – Written Business Continuity and Transition Plans for Registered Advisers

Earlier this week, the SEC issued a Press Release announcing a Rule Proposal that would require SEC-registered investment advisers to adopt written business continuity and transition plans (BCP) as part of their compliance program.  The comment period on the Rule Proposal is expected to close in September.  Under the proposed rule, an adviser’s written BCP … Continue Reading

OCC Forum on Responsible Innovation

On June 23, 2016 the Office of the Comptroller of the Currency (OCC) hosted the Forum on Responsible Innovation in the Federal Banking System in Washington, D.C. Hundreds of industry stakeholders gathered to discuss “Responsible Innovation,” fintech, and the role of the OCC in regulating the financial industry as it evolves.  The forum addressed reaction … Continue Reading

Early Signs on Fintech from the Consumer Financial Protection Bureau

There is no doubt that the regulation of financial technology (fintech) companies is on the rise. Fintech companies broadly mean companies that provide products, services and technology where traditional banking and financial services leave off and technology takes off. Though all of the federal banking agencies and other agencies will play a vital role in … Continue Reading

SEC Raises Net Worth Threshold for ‘Qualified Client’ Status to $2.1 Million Effective Aug. 15, 2016

As it previously signaled it would do, on June 14, 2016, the SEC issued an Order (available here) increasing the net worth threshold for qualification as a “qualified client” under Rule 205-3 under the Advisers Act from $2 million to $2.1 million (the SEC did not adjust the assets under management of the adviser threshold, … Continue Reading

Fiduciary Standard Rule for Retirement Accounts Approved

The Department of Labor has given final approval to its long-anticipated “fiduciary standard” regulation.  The new rule – which has been in the works for nearly six years – requires financial advisors who provide investment recommendations for retirement accounts to meet a fiduciary standard by putting clients’ interests before their own.  Previously, a registered representative advising … Continue Reading

OCC Issues New Guidance and Policies on Enforcement Actions and Civil Monetary Penalties Against Institutions and Individuals

The Office of the Comptroller of the Currency (“OCC”) recently released new guidance on the process it uses when considering enforcement actions against banking institutions and individuals for potential non-compliance with Bank Secrecy Act (“BSA”) compliance program requirements and anti-money laundering (“AML”) rules.  At the same time, the OCC also issued a revised policy for … Continue Reading
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