Securities and exchange commission

The U.S. Securities Exchange Commission (SEC) Enforcement Division altered the jet stream of blogosphere commentary last December by, for the first time, recommending legal action against a CEO on account of a Facebook post. Immediately after the announcement, a blizzard of articles, tweets, and blogs buried the mediascape with opinions about the critical role of CEO social media use in the new economy, the wisdom or foolishness of allowing CEO's to Tweet or post, and whether the SEC should be time warped back to the Stone Age it seems to prefer. … [Read more...] about Protect Your CEO’s Tweets and Posts from U.S. Securities Exchange Commission (SEC) Enforcement Action

Since the inception of the federal securities laws in the 1930s, a basic rule has been, absent registering with the Securities Exchange Commission (SEC) (and/or the state equivalent of the SEC), companies may not conduct general solicitations of the offerings of securities. This includes not making private placement memoranda or other offering documents on a company’s website. In 2012, Congress passed and the President signed the JOBS Act which instructed the SEC to create rules to allow general solicitation to accredited investors. … [Read more...] about Securities Exchange Commission’s (SEC) New General Solicitation Rules Are Here

One last thing to note is the SEC’s rules on integration of offerings remain in place. While the new rule did not go into detail, it can be assumed an issuer that begins a Rule 506(c) offering and makes a general solicitation, would then not be able to convert an unsuccessful offering into an effective standard private placement, and then may be out of the capital raising market for some time.  … [Read more...] about The Securities Exchange Commission (SEC) New General Solicitation Rules Are Here

Plaintiffs alleged that the SEC failed to investigate the SIBL scheme and thereby contributed to plaintiffs’ loss. The United States moved to dismiss for lack of subject matter jurisdiction, arguing that the SEC’s actions fell within the “discretionary function” exception to the FTCA. Pursuant to the FTCA, a plaintiff can sue a government agency or employee who commits negligent or wrongful acts where the suit would otherwise be barred by sovereign immunity. The “discretionary function” exception removes from the ambit of the FTCA situations in which agencies or employees exercise discretionary authority.  … [Read more...] about District Court Dismisses Class Action Suit Under Federal Tort Claims Act (FTCA) Against Securities Exchange Commission (SEC)

Under the proposed rules, Covered Clearing Agencies would be required to establish, implement, maintain and enforce policies and procedures covering many of the topics currently required by the SEC’s existing oversight program, including settlement, central securities depositories and settlement systems, default management, operational risk management and transparency, and communication efficiency. In addition to the aforementioned topics, the proposed rules would require Covered Clearing Agencies to address the following new topics in such policies and procedures: (1) governance and comprehensive risk management (including establishing qualifications of members of board of directors or senior management); (2) financial risk management (including liquidity risk, credit risk, margin and collateral); and (3) general business risk management (including a requirement to hold liquid net assets funded by equity equal to at least six months of current operating expenses).   … [Read more...] about Securities & Exchange Commission (SEC) Proposes Rules to Enhance Oversight of Clearing Agencies