Tag Archives: financial regulatory and compliance

FINRA Announces Rule 2273, Requiring Broker’s New Firm to Send “Educational Communication” to Broker’s Customers Before Transfer of the Customer’s Assets to the New Firm

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

FinTech Companies Should Be Wary of Potential Sales Tax

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

SEC Issues No-Action Letter on Custody Rule

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

Third District Court of Appeals Reverses Holding on Statute of Limitations for Florida Foreclosures: The Impact of Deutsche Bank Trust Company Americas, as Trustee v. Beauvais

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

Not Every Broker-Dealer is an EB-5 Broker-Dealer

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 Sponsored and Participated in CFSA’s 16th Annual Meeting Conference

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

SEC Acts to Enhance Oversight of Funds and Advisers

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

Greenberg Traurig is Proud to Sponsor and Participate in the 16th Annual FIBA AML Compliance Conference

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

SEC and FINRA Name EB-5 as a Priority in 2016

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

Manhattan and Miami Residential Real Estate Sales – What Are the New Treasury Department Anti-Money Laundering Requirements All About?

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

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

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 Set to Emphasize ‘Firm Culture’ and Ethics as Exam Priorities in 2016

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

FINRA and MSRB Propose New Pay-to-Play Restrictions on Broker-Dealer Solicitors and Municipal Advisors; Rules Will Trigger SEC Investment Advisor Third-Party Solicitation Ban

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

Shareholder Nanette Aguirre Spoke at the National Association of Black Accountants Finance and Law Program at Baruch College

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

Common Law Doctrines of Beneficial Ownership – Foreign Banks, U.S. Branches and Equity Swaps

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

Fred E. Karlinsky Moderated the Regulatory Issues Panel at St. John’s University Conference

Fred E. Karlinsky, shareholder in the Fort Lauderdale and Tallahassee offices of international law firm Greenberg Traurig P.A., moderated a panel entitled “Marketplace Realities of the Regulatory Crosswinds” at the annual conference hosted by St. John’s University School of Risk Management, Insurance, and Actuarial Science. The Oct. 14 event drew senior industry representatives to the … Continue Reading

Richard Fidei to Speak in the Webcast – Proof of Compliance: Plan, Prepare and Implement a Regulator Ready Program

Greenberg Traurig’s Richard Fidei, shareholder in the Insurance Regulatory &Transactions and  Financial Regulatory and Compliance Practices, will participate in a webcast sponsored  by  Association of Insurance Compliance Professionals on Nov. 4, 2015. Fidei will join a panel in the program titled “Proof of Compliance: Plan, Prepare and Implement a Regulator Ready Program.” The webcast will focus … Continue Reading

SEC Permits Companies to Sell Securities Through Crowdfunding

The SEC has adopted new rules which would permit companies to offer and sell securities through online crowdfunding. Crowdfunding is a method of raising capital by monetary contributions from a large number of people, usually through the Internet. The new rules will allow small businesses and entrepreneurs to more easily raise capital, and will permit average citizens … Continue Reading

Brett Kitt Spoke at the ABA Consumer Financial Services Committee Meeting

Greenberg Traurig’s Brett Kitt, Of Counsel in the Financial Regulatory and Compliance Practice, participated in the American Bar Association Consumer Financial Services Committee Meeting, Sept. 17-19, 2015, in Chicago, IL. Kitt was a panelist in the session titled “The CFPB Complaint Database.”  The discussion addressed the Consumer Financial Protection Bureau’s  (CFPB) process for addressing consumer … Continue Reading

FINRA Announces Proposed New Rules to Protect Senior Investors

FINRA has proposed new rules to protect senior investors and other vulnerable adults from financial exploitation. The proposed rules would require member firms to make reasonable efforts, at the time of account opening for a senior investor, to obtain the name and contact information of a trusted contact person. The proposed rules would also allow firms to … Continue Reading

Jennifer Gray and Eric Rowen Spoke at a Greenberg Traurig and ACC Southern California Financial Services Program

Greenberg Traurig and the ACC Southern California Financial Services Committee hosted a Hot Topics & Recent Developments in Financial Services Law program on Aug. 6 in Los Angeles. The interactive roundtable program discussion was led by Greenberg Traurig shareholders, Jennifer Gray and Eric Rowen, co-chair of the Real Estate Litigation Practice and chair of the western … Continue Reading

SEC Issues New Volcker Rule FAQ Addressing Seeding Period Domestic and Foreign Public Funds

On July 16, the SEC (along with other federal regulators) updated its FAQ regarding the Volcker Rule, available here.  In this update, the SEC provided the following information with respect to the “banking entity” status of registered investment companies and foreign public funds during their seeding periods: The rule implementing section 13 of the BHC … Continue Reading
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