Updates on Regulation, Trading, and Market Reforms for the Alternative Investment Community

CategoryRegulatory

Increase in Sophistication of Ransomware Attacks on SEC Registrants

On July 10, 2020, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) issued a cybersecurity risk alert in which it discussed the flood of bad actors orchestrating phishing campaigns designed to penetrate financial networks to access internal resources and deploy ransomware.  OCIE’s alert indicated that ransomware attacks on SEC registrants appeared to...

ARRC Releases Fallback Language for the LIBOR Transition

The Alternative Reference Rates Committee (ARRC) released updated fallback language for new originations of U.S. dollar-denominated syndicated business loans that reference LIBOR and new variable-rate private student loans on June 30, 2020.  The language is intended to address the disruption that could occur should the termination of LIBOR indeed occur at the end of 2021. With respect to...

Block.one, Creator of EOS, Settles with the SEC. Was it a Slap on the Wrist? Did EOS Get a Pass from the Feds?

Earlier this week it was announced by the Securities and Exchange Commission (SEC) that it had settled with Block.one, creator of EOS, regarding allegations of issuing unregistered securities during an initial coin offering (ICO) that raised a record-breaking $4 billion. The fine assessed by the SEC was a mere $24 million. Chump change in comparison to the billions collected in the ICO. Block.one...

Delaware Law Updates

On July 23, 2018, Delaware amended the Delaware limited liability company act (the “LLC Act”). The two key amendments were to (a) permit a divisive or divisional merger and (b) create provisions related to a registered series. Divide Away! (aka Divisive Mergers) The LLC Act now permits a divisive or divisional merger. Under new Section 18-217 of the LLC Act, a Delaware LLC will be permitted to...

Cayman Islands Update 2018-2019

During 2018 a number of significant changes to the Cayman Islands regulatory regime occurred. As a result, fund vehicles now have significantly increased obligations as regards obligations in relation to Anti-Money Laundering (“AML”) including appointing compliance officers and potentially making additional filings. Further, the deadline for compliance with the regime relating to the disclosure...

Registered Investment Adviser Compliance Update

The SEC’s Division of Enforcement has indicated that one of its focuses for 2018 was on retail investors. This focus has translated into increasing number of cases involving investment advisers. According to the Enforcement Division’s recently published reports, cases involving investment advisers and investment companies were the second largest group of actions in the last year, just...

Update on Department of Labor Fiduciary Rule and Regulatory Relief for Smaller VC Funds

On March 15, 2018, the Fifth Circuit Court of Appeals vacated the Department of Labor’s (“DOL’s”) Fiduciary Rule, holding in a 2-1 decision that the DOL exceeded its regulatory authority in passing the rule. The decision struck down the new fiduciary advice definition and denied the attorneys-general of California, New York, and Oregon, as well as the interest group AARP, the opportunity to...

Updates on Regulation, Trading, and Market Reforms for the Alternative Investment Community