August Regulatory Updates from Cari Hopsfenperger at Hardin Compliance Consulting LLC.

Topics include:

• Trading Restrictions Impacting Chinese Military Companies Persist but Modified Under New Executive Order
• Colorado Becomes the Third U.S. State to Pass Comprehensive Data Privacy Act
• SEC Adopts Inflation-Adjusted Threshold for Qualified Clients
• Amended CPO Form-PQR Filing Requirements are Effective
• Keeping Current with Best Execution and Payment for Order Flow
• Changes to Interpretations of FINRA’s Margin Rule
• Private Placement Filing Requirements Updated to Include Retail Communications
• And the Award for Largest Financial Penalty Ever Issued by FINRA Goes to… 
• Auditors Charged with Widespread Private Fund Audit Failures
• TIAA CREF Learns Greed is Not So Good, Paying $97 Million Fine for Disclosure Failures
• SEC Continues to Hammer Advisors on Disclosure Failures in Revenue Sharing Cases
• Does Your Compliance Manual Violate Whistleblower Rules?

Read more here.

In recent weeks, we have observed significant new developments in securities regulation related to two enforcement actions by the Commission and an unexpected (and, to our knowledge, unprecedented) new rule adopted by a state securities regulator.  First, the Commission has published enforcement actions against registered investment advisers (“RIAs”), involving: (a) failure to make conflicts-related disclosures about payment of forgivable recruitment loans/bonuses; and (b) failure to comply with Rule 206(4)-3 (the “Solicitation Rule”) when using social media influencers acting as referral sources.  Second, the Tennessee Securities Division has fundamentally changed the process for issuers and broker-dealers attempting to shield themselves from civil liability arising from unregistered, non-exempt securities offerings through rescission offers.

Read more here.

Additional contributors:
Thomas B. Cain,  tcain@kilpatricktownsend.com
Alexandra M. Fenno,  afenno@kilpatricktownsend.com
Jeffrey T. Skinner, jskinner@kilpatricktownsend.com

June Regulatory Updates from Cari Hopsfenperger at Hardin Compliance Consulting LLC.

Topics include:

• DOL issues Cybersecurity Guidance — The DOL guidance was published in three separate pieces: Tips for Hiring a Service Provider with Strong Cybersecurity Practices, Cybersecurity Program Best Practices, and Online Security Tips for Participants and Beneficiaries.  Contributed by Glenn R. Skreppen, Senior Compliance Consultant
• Updates to State Senior Laws & Resources  — The law firm of Bressler, Amery and Ross, has created and continues to update its Senior and Vulnerable Investors Issues map, with summaries of the requirements for all 50 states. Contributed by Carolyn W. Mendelson, Senior Compliance Consultant
• Form ID Updates
• NASAA Annual Report on State Registered Advisers
• 2021 Cayman CRS (and FATCA) Updates 
• Do Your Options Procedures Need Work?
• Can You Pass This Quiz Regarding the Use of Predispute Arbitration Agreements? 
• SEC Charges Broker-Dealer for Failing to File SARS

Read more here.

Thanks to Kurt Wolfe and Chris Ekimoff for having me as a guest on the lastest installment of PLI’s inSecurities podcast.  As someone who tunes in regularly, it was a pleasure for me to do. I enjoyed chatting about broker-dealer and investment adviser regulatory issues, my work with PLI including the upcoming live webcast Securities Law and Practice 2021: How the SEC Works on June 28.

To hear this episode, and other episodes, click here.