On March 4, 2020, the Securities and Exchange Commission (the “SEC”) issued a proposal to revise the exempt offering rules under Regulation D (exempt offerings) and Regulation S (offshore offerings) of the Securities Act of 1933 largely to make it easier to conduct such offerings. The proposals include, among other things: While Rule 506(c) under… Read more »
Posts Categorized: Uncategorized
UK Financial Conduct Authority to Act as AML and Counter-Terrorist Supervisor for Cryptoasset Businesses
The UK Financial Conduct Authority has announced on a website that it has been appointed to be the anti-money laundering and counter terrorist financing supervisor for UK cryptoasset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 from January 10, 2020. Although the definition of cryptoasset businesses has… Read more »
SEC Claims ICO Is Unregistered Securities Offering
On June 4, 2019, the Securities and Exchange Commission (the “SEC”) filed a claim in the District Court for the Southern District of New York alleging that the Initial Coin Offering (the “ICO”) of Kik Interactive Inc. (“Kik”) was an illegal unregistered securities offering. From May 2017 to September 2017, Kik raised about $100 million through… Read more »
Federal Court in New York Finds in Interim Decision Against OCC FinTech Charters
In an order dated May 2, 2019, the U.S. District Court for the Southern District of New York found that certain claims brought by the N.Y. Department of Financial Services (the “DFS”) that the Office of the U.S. Comptroller of the Currency (the “OCC”) does not have the authority to issue charters to non-depositary fintech… Read more »
FinCEN Extends Program to Identify Beneficial Owners of Real Estate Entities to November
The Financial Crimes Enforcement Enforcement Network (“FinCEN”) of the U.S. Treasury has extended to November its program to require title insurance agencies in certain cities to collect and report to it the beneficial owners of legal entities used to purchase real estate. The “Geographic Targeting Order” applies to acquisitions of residential real estate in certain… Read more »
FINRA Establishes Office of Financial Innovation
In a press release dated April 24, 2019, the Financial Industry Regulatory Authority (“FINRA”) announced that it had established the Office of Financial Innovation. The office is focused on financial technology, otherwise known as FinTech. Haimera Workie, originally a graduate of MIT and Harvard and now a Senior Director at FINRA, has been named it… Read more »
New Provisions of Delaware LLC Law
In July 2018, the Delaware Limited Liability Company (“LLC”) law was amended to allow registered series and division of LLCs. Delaware LLCs could be divided into series previously, but among other things the series were not considered “registered organizations” for purposes of Title 9 of the Uniform Commercial Code. LLC series can now be registered by… Read more »
FINRA Seeks Notification of Broker-Dealer Digital Asset Activity
On July 6, 2018, the Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 18-20 encouraging broker-dealers regulated by it to notify it if the broker-dealer or an affiliate currently engages, or intends to engage, in any activities related to digital assets. FINRA says that this will assist it in monitoring developments in the digital asset… Read more »
New FCPA Enforcement Policy
On November 29, 2017, the U.S. Department of Justice (the “DOJ”) issued an update to its U.S. Attorney’s Manual to adopt a new Foreign Corrupt Practices Act (“FCPA”) Corporate Enforcement Policy (the “Policy”). Under the Policy, credit will be given to certain self-reporting by companies (in the form of declination to prosecute or lower fines) or… Read more »
U.K. Anti-Money Laundering Regulation Updated
The United Kingdom has published a near final regulation, the Money Laundering and Transfer of Funds (Information on the Payer) Regulations 2017 (the “Regulation”) under the E.U. Fourth Money Laundering Directive, to replace the Money Laundering Regulations 2007. The Regulation is due to go into effect on June 26, 2017, although it may be delayed. Under the… Read more »