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
The Financial Stability Oversight Council (FSOC) has released its 2016 Annual Report, which was unanimously approved by its voting members on Tuesday, June 21, 2016. The FSOC is required by Congress to report on their activities annually. The Dodd-Frank Act created the FSOC in order to properly identify risks that may pose challenges in the … Continue Reading
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
Greenberg Traurig co-sponsored a unique event bringing together leading fintech companies from Atlanta and Israel. Led by Atlanta shareholder, David Schulman, the event was aimed to match Atlanta-based international fintech corporations with cutting-edge Israeli technology companies in the field, including companies that offer card processing, electronic billing, and multi-channel solutions to the banking industry, as … Continue Reading
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
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
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
The Federal Communications Commission (FCC) has proposed rules to implement a provision in the Bipartisan Budget Act of 2015 (Budget Act) that allows robocalls (i.e., calls made with an automatic telephone dialing system or calls with an artificial or prerecorded voice) to be used for the purpose of collecting a debt owed to or guaranteed … Continue Reading
FINRA has issued a regulatory notice (RN 16-18) regarding new Rule 2273, which requires member firms, when hiring a new broker from the competition, to send an “educational communication” to that broker’s customers if and when those customers move or seek to move their assets to the hiring firm. The new rule, which was recently … Continue Reading
As shown in a recent Texas case involving a financial technology (FinTech) business, the rapid advance of online professional services is colliding with states that impose sales tax on cloud computing or data processing. With limited exceptions, states generally do not impose sales tax on most professional services; however, some states are casting their nets … Continue Reading
On April 25, 2016, the SEC issued a no-action letter to the Investment Advisers Association clarifying its views on the application of Rule 206(4)-2 under the Advisers Act (the Custody Rule) to situations involving a sub-adviser in an investment advisory program for which a related person qualified custodian is the primary adviser and the primary … Continue Reading
On April 13, 2016, Florida’s Third District Court of Appeal (Third District) issued its en banc opinion in Deutsche Bank Trust Company Americas, as Indenture Trustee for American Home Mortgage Investment Trust 2006-2 v. Beauvais, __ So. 3d __, No. 3D14-575 (Fla. 3d DCA Apr. 13, 2016), holding that “dismissal of a foreclosure action accelerating … Continue Reading
Nearly all U.S. broker-dealers are members of the Financial Industry Regulatory Authority (FINRA). FINRA regulates, and provides oversight and guidance for its member firms. When a broker-dealer becomes a FINRA member, they enter into a membership agreement which, among other things, specifies which financial products and services the broker-dealer is permitted to offer to its … Continue Reading
Greenberg Traurig was a proud sponsor of CFSA’s 16th Annual Meeting Conference that was held in the Paradise Island Bahamas from March 7-10, 2016. Gil Rudolph, Shareholder in Greenberg Traurig’s Washington, D.C. and Phoenix office, participated as a speaker in the panel session titled “Compliance Management: Vendor Relationships and Data Security.” Conference attendees were provided … Continue Reading
During recent months the SEC has made a number of announcements regarding its efforts to enhance and expand its oversight and inspections of registered investment companies and investment advisers. Of significance in this regard was the announcement of plans to hire additional examiners and reassign some existing examiners to expand the staff available for inspections of … Continue Reading
As a reminder, Rule 204-1 under the Investment Advisers Act of 1940 requires that all investment advisers amend their Form ADV filing at least annually, and do so within 90 days of the end of the adviser’s fiscal year. As highlighted by a recent email from the SEC to registered investment advisers, due to 2016 being … Continue Reading
Greenberg Traurig is proud to sponsor the 16th Annual FIBA AML Compliance Conference that will be held in Miami, FL, from March 7-9, 2016. Carl Fornaris, Shareholder in the GT Miami office, will participate as a moderator in the breakout session titled “Section 311 and Unintended Consequences – the Curious Cases of Banca Privada d’Andorra … Continue Reading
Earlier this month, the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) each published their 2016 exam priorities letters. Each agency publishes an exam priority letter annually in which they identify topics of examination focus for the coming year, recurring challenges faced by firms, and perceived areas of heightened risk to … Continue Reading
In January 2016, the Treasury Department announced “geographic targeting orders” (GTOs) that will require title insurance companies and their agents to obtain representative and ultimate beneficial ownership information when a legal entity purchases residential real estate in Manhattan or Miami-Dade County with purchases prices that exceed $3 million and $1 million, respectively. It is expected that this … Continue Reading
On Jan. 11, 2016, the Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission (SEC) issued its annual Examinations Priorities for 2016 (Exam Priorities), which is available for download here. In the Exam Priorities, OCIE notes that its priorities focus on the same three thematic areas as in 2015 (which we … Continue Reading
FINRA recently released its 2016 Regulatory and Examination Priorities Letter, an annual event which serves to highlight both emerging and existing risks in the financial services industry. The letter serves as a guide to FINRA’s priorities for the upcoming year, and highlights the issues which FINRA deems most important to its regulatory mission at the moment. … Continue Reading
On Dec. 16, 2015, the Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB) simultaneously filed with the Securities and Exchange Commission (SEC) rule proposals that will have broad and substantial impacts on the political giving of broker-dealers, investment advisers and municipal advisors and their ability to engage in business with governmental entities … Continue Reading
Nanette Aguirre, a shareholder in the New York office of international law firm Greenberg Traurig, participated in a National Association of Black Accountants (NABA) Finance and Law program on Dec. 1 at Baruch College. Among the topic areas that were discussed in depth were matters concerning derivatives, the regulatory environment, and the importance of merging … Continue Reading
When foreign banks doing business in the U.S. calculate gain or loss from equity swaps, they would do well to pay attention to common law doctrines of beneficial ownership. This is the case even though these doctrines have recently lost much of their relevance for withholding tax purposes. In a typical equity swap, one party (in … Continue Reading
