On Feb. 21, 2018, the U.S. Supreme Court held that the anti-retaliation provision of the Dodd-Frank Act (DFA) protects only employees who complain to the Securities and Exchange Commission (SEC) and not those who make only internal complaints. In a unanimous decision, the justices ruled in favor of Digital Realty Trust (Digital Realty), finding that … Continue Reading
On Monday, June 26, 2017, the U.S. Supreme Court agreed to review whether the Dodd-Frank Act (DFA) prohibits retaliation against internal whistleblowers or only covers individuals who report to the U.S. Securities and Exchange Commission (the SEC). This question has divided practitioners and lower courts alike since Dodd-Frank’s passage in 2010. As reported in our … Continue Reading
On March 8, 2017, in Somers v. Digital Realty Trust Inc., No.15-cv-17352 (9th Cir., March 8, 2017), the Ninth Circuit Court of Appeals affirmed the district court’s denial of the defendant’s motion to dismiss a whistleblower claim brought under the Dodd-Frank Act’s (“DFA”)’s anti-retaliation provision. In a 2-1 decision, the majority endorsed the approach of … Continue Reading
President Trump has announced his intention to nominate Commodity Futures Trading Commission (CFTC) acting head J. Christopher Giancarlo as permanent chairman. This news is of high importance for the alternative investment community, which will be impacted by Giancarlo’s regulatory vision for the agency and Dodd-Frank reform. As a Republican commissioner at the agency since 2014, … Continue Reading
In a 110-page decision issued on Oct. 11, 2016, the United States Court of Appeals for the District of Columbia Circuit declared the Consumer Financial Protection Bureau’s (CFPB) single-director structure unconstitutional and vacated a $103 million fine against PHH. The Court found that the current structure allows the Commissioner to wield too much power that … Continue Reading
Recent SEC Fines On Aug. 16, 2016, the U.S. Securities and Exchange Commission (SEC) announced that it had issued its second fine in as many weeks concerning a company’s use of severance agreements that contain confidentiality and/or covenant-not-to-sue or release provisions that allegedly violate SEC whistleblower Rules. These recent SEC charges arise from SEC Rules, … Continue Reading
On May 21, 2015, the Senate Banking Committee approved by a 12-10 vote a financial regulatory reform package developed by the Committee’s Chairman, Richard Shelby (R-AL) that includes the most significant changes to Dodd-Frank since the law was enacted nearly five years ago. In this Alert, the author discusses the package’s components and what is … Continue Reading
Both the SEC and the CFTC were authorized by the Dodd-Frank Act to reward certain persons for providing information that leads to an enforcement action. Prompted by such a “whistleblower’s” notification, the CFTC investigated and initiated a widely-reported civil enforcement action against a trader. Under the CFTC’s implementation of the whistleblower program, for information that … Continue Reading
After enactment of the Dodd-Frank Wall Street Reform and Customer Protection Act of 2010 (“Dodd-Frank”), Commodity Futures Trading Commission (“CFTC”) expanded its enforcement authority outside the traditional realm of exchange-traded commodities. The 11th Circuit Court of Appeals has confirmed CFTC authority over certain retail commodity transactions when no exception to the Commodity Exchange Act exists. … Continue Reading
In recent weeks, a number of developments related to trade “spoofing” should indicate to market participants, in no uncertain terms, that regulators remain vigilant about potentially improper trade practices. “Spoofing” is generally defined as the entry of purchase or sale orders in the market without the intent that they be executed, but rather with the … Continue Reading
The Senate Banking Committee will mark up a financial regulatory reform bill on May 14 that is expected to include changes to the Dodd-Frank Act. Senate Banking Committee Chairman Richard Shelby (R-AL) is working with Committee Ranking Member Sherrod Brown (D-OH) to put together a legislative package that can win bipartisan support. This is necessary … Continue Reading
Prior to adjournment, the 113th Congress passed the first changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203, “Dodd-Frank”) since the landmark legislation was signed into law by President Obama on July 21, 2010. The changes partially repeal the “swaps push-out” rule and make clear the Federal Reserve Board’s authority to … Continue Reading
