Industry News

SEC Investor Bulletin Warns of Risks Associated With Initial Coin Offerings

SEC Investor Bulletin Warns of Risks Associated With Initial Coin Offerings

In July, the SEC issued an Investor Bulletin to raise awareness of the risks associated with Initial Coin Offerings, which are investment offerings made by “virtual” organizations utilizing distributed ledger or blockchain technology. [1] The virtual coins or tokens that are issued in these offerings are typically offered and sold on the basis that…

Michigan Lawmakers Propose Legislation to Tackle Financial Exploitation of Senior Investors

Michigan Lawmakers Propose Legislation to Tackle Financial Exploitation of Senior Investors

In May, a group of Democratic and Republican senators and representatives in Michigan introduced proposed legislation aimed at protecting Michigan’s seniors, and other vulnerable adults, from financial abuse by mandating that financial advisers report suspected abuse to Adult Protective Services and law enforcement. Other key features of the proposed legislation…

SEC Approves New FINRA Rules Aimed at Preventing Financial Exploitation of Senior Investors

SEC Approves New FINRA Rules Aimed at Preventing Financial Exploitation of Senior Investors

Under recently approved amendments to FINRA Rule 4512, which are set to go into effect in February 2018, financial advisors will be required to make reasonable efforts to obtain the name of, and contact information for, a “trusted contact person” for senior accounts. FINRA Rule 4512 (Customer Account Information). A request for such…

Federal Appeals Court Rules that SEC’s “In-House” Court System is Unconstitutional

Federal Appeals Court Rules that SEC’s “In-House” Court System is Unconstitutional

The U.S. Court of Appeals for the Tenth Circuit ended 2016 with a bang last week when it ruled that the SEC’s long-standing practice of using “non-appointed” Administrative Law Judges (“ALJs”) to preside over agency enforcement hearings violates the Appointment Clause of the U.S. Constitution. The decision in Bandimere v SEC was accompanied by a…