SEC

Arnold & Porter Discusses ESG, Disclosure, and Whistleblowing

By Jane Norberg, Robert Azarow, Daniel M. Hawke, Brian D. Israel and Erik Walsh September 29, 2021 by renholding

On August 25, 2021, The Wall Street Journal reported that the SEC and the United States Attorney’s Office for the Eastern District of New York are investigating greenwashing allegations made by the former head of sustainability of Deutsche Bank AG’s …

SEC Chair Speaks Before Small Business Capital Formation and Asset Management Advisory Committees

By Gary Gensler September 28, 2021 by renholding

Thank you, Carla [Garrett]. It’s good to be with this Committee again. I’d like to thank the members for their time and willingness to represent the interests of America’s small businesses. As is customary, I’d like to note I’m not

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Davis Polk Discusses SEC Request for Information on Digital Engagement by Broker-Dealers, Investment Advisers   

By Gabriel D. Rosenberg, Jai R. Massari, Tyler X. Senackerib, Margaret E. Tahyar and Zachary J. Zweihorn September 24, 2021 by renholding

In light of the growing popularity of digital investing platforms and increased scrutiny of these platforms by Congress, the SEC has released a broad request for information and public comment (RFI) on all matters related to the use of digital …

Mandatory Short Selling Disclosure Could Lead to Investor Herding Behavior

By John Heater, Ye Liu, Qin Tan and Frank Zhang September 23, 2021 by renholding

Commission-free trading apps like Robinhood and coordinated action by retail investors on Twitter, WallStreetBets, and other social media have created an unprecedented force on Wall Street that specifically targets short sellers. One result has been a massive run-up in the …

The Real Effects of Conflict Minerals Disclosures

By Bok Baik, Omri Even-Tov, Russell Han and David Park September 22, 2021 by renholding

Pursuant to the Dodd-Frank Act, the Securities and Exchange Commission (SEC) adopted the conflict minerals disclosure (CMD) rule, which requires issuers to perform due diligence on “conflict minerals” – natural resources known to fuel conflicts in underdeveloped nations – that …

SEC Chair Gensler Speaks on Alternative Reference Rates

By Gary Gensler September 21, 2021 by renholding

It’s good to be with the Alternative Reference Rates Committee to discuss the transition from the London Interbank Offered Rate (LIBOR). I’d like to thank the Committee, the New York Fed, and the Federal Reserve Board for putting this together.

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Unicorniphobia

By Alexander Platt September 20, 2021 by renholding

Once upon a time, a successful startup that reached a certain maturity would “go public” – selling securities to ordinary investors, perhaps listing on a national stock exchange, and taking on the privileges and obligations of a public company under …

The Jobs Act Did Not Raise IPO Underpricing

By Omri Even-Tov, Panos N. Patatoukas and Young S. Yoon September 17, 2021 by renholding

The JOBS Act was signed into law on April 5, 2012, with the objective of improving access to the public capital market for growth companies. Title I of the JOBS Act amended the Securities Act and the Exchange Act and …

SEC Chair Gensler Testifies Before Senate Committee on Banking, Housing, and Urban Affairs

By Gary Gensler September 16, 2021 by renholding

Good morning, Chairman Brown, Ranking Member Toomey, and members of the Committee. I’m honored to appear before you today for the first time as Chair of the Securities and Exchange Commission. I’d like to thank you for your support in …

Whistleblowing Should Be Part of President Biden’s Fight Against Corruption

By Stephen M. Kohn September 15, 2021 by renholding

On June 3, 2021 President Joseph Biden issued a “Memorandum on Establishing the Fight Against Corruption as a Core United States National Security Interest,” (hereinafter “Anti-Corruption Memorandum” or “Memorandum”).  In issuing the Memorandum, President Biden placed fighting corruption …

Disclosure Procedure

By Andrew Jennings September 13, 2021 by renholding

Each year, U.S. public companies spend millions of people-hours producing the securities disclosures that undergird public capital markets. But relatively little is known about how firms produce such consequential information, including whether they are spending too much, too little, or …

Gibson Dunn Offers 2021 Mid-Year Securities Litigation Update

By Monica K. Loseman, Craig Varnen, Jefferson E. Bell, Rachel N. Jackson and Alisha Siqueira September 13, 2021 by renholding

The torrid pace of new securities class action filings over the last several years slowed a bit in the first half of 2021, a period in which there have been many notable developments in securities law.  This mid-year update briefs …

SEC Chair Gensler Speaks Before Investor Advisory Committee

By Gary Gensler September 10, 2021 by renholding

Thank you for the kind introduction. I’d like to note that my views are my own, and I’m not speaking on behalf of my fellow Commissioners or the staff.

I’m glad to participate in my second meeting of the Investor

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The Impact of SEC Case Backlog on Investigations

By Samuel Bonsall, Eric Holzman and Brian Miller September 9, 2021 by renholding

In recent years, the number of enforcement actions by the Securities and Exchange Commission (SEC) has declined significantly, which has led to questions about the SEC’s effectiveness. While several potential explanations exist for this decline, SEC officials have often pointed …

The Strategic Use of Form 13F Restatements by Hedge Funds

By Sean Cao, Zhi Da, Daniel Jiang and Baozhong Yang September 7, 2021 by renholding

On July 10, 2020, the Securities and Exchange Commission (SEC) announced a proposal to increase the reporting threshold for Form 13F from $100 million to $3.5 billion. Form 13F was adopted in 1975 and required managers with more than $100 …

Debevoise & Plimpton on the Latest Round of SEC Cybersecurity Enforcement Actions

By Avi Gesser, James Pastore and Mengyi Xu September 7, 2021 by renholding

On August 30, 2021, the SEC filed settled enforcement actions against three groups of broker-dealers and investment advisers for failing to protect confidential customer information in violation of Rule 30(a) of Regulation S-P (the “Safeguards Rule” or “Rule”). One group …

SEC Chair Speaks Before European Parliament Committee on Economic and Monetary Affairs

By Gary Gensler September 2, 2021 by renholding

Thank you, Chair Tinagli and Members of the Committee. I’m honored to appear before this Committee for the fourth time, and for the first time as Chair of the U.S. Securities and Exchange Commission. As is customary, I’d like to

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The Anti-SPAC Attack Claque

By William A. Birdthistle August 31, 2021 by renholding

A joint letter by 58 law firms is certainly a notable declaration, particularly when pulled together within a mere 10 days after litigation initiated by esteemed scholars. Observers might be tempted to wonder whether the motivation for such a quick …

Supreme Risk for FINRA and Other SROs

By Benjamin P. Edwards August 30, 2021 by renholding

Most efforts to manage systemic risk tend to focus on risks arising from within financial markets, from existing regulators, or from legislative misadventures. Yet self-regulatory organizations (SROs) and the markets that depend on their steady functioning now face an underappreciated …

The SEC, Digital Assets, and Game Theory

By Yuliya Guseva August 27, 2021 by renholding

Digital assets, cryptoassets, cryptocurrencies, and security-tokens have become ubiquitous. Yet approaches to regulating them differ around the globe. In the U.S., the Securities and Exchange Commission (“SEC” or “Commission”) has become a uniquely active crypto-regulator. In my recent article, …