Andrew Lom (US)

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US SEC adopts wide-reaching rules for private fund advisers

On August 23, 2023, the Securities and Exchange Commission adopted highly controversial new rules and rule amendments to the Investment Advisers Act of 1940 in an effort to further regulate the private funds industry. These new rules attempt to “increase transparency, competition and efficiency in the private funds market.” Our client update can be found … Continue Reading

US Federal Court issues mixed ruling in watershed SEC action on Ripple’s XRP

On July 13, 2023, the United States District Court for the Southern District of New York issued a mixed decision as to whether various sales and issuances of the XRP token (XRP) by Ripple Labs, Inc. (Ripple) and two of its executives (collectively the defendants) constituted the sale of an unregistered security in violation of … Continue Reading

Upcoming global webinar:Setting the global scene for asset managers

On Tuesday 11 July 2023, we will be hosting a global webinar, focussing on asset management regulation, with perspectives from across the globe. Our global financial services and regulation team will provide a global comparison on the asset management regulatory landscape across key jurisdictions including the UK, Europe, Asia, Australia and the US.  Our team … Continue Reading

New briefing note: SEC adopts heightened reporting requirements for private funds

In our latest briefing note we look at the SEC’s adoption of new amendments enhancing disclosure requirements for private funds. The amendments are designed to ‘enhance the ability of the Financial Stability Oversight Council (FSOC) to assess systemic risk and to bolster the Commission’s oversight of private fund advisers and its investor protection efforts’.… Continue Reading

New FinTech Pulse podcast: US federal regulators’ regulatory enforcement activity against crypto exchanges

In a special edition of our FinTech Pulse podcast series, US partners Stephen Aschettino, Andrew Lom and Kevin Harnisch discuss the recent uptick in regulatory enforcement activity from federal regulators against crypto exchanges, with the SEC issuing a Wells Notice to Coinbase and suing Beaxy, and the CFTC suing Binance and seeking permanent injunctions to … Continue Reading

Beneficial ownership registers: Regulation Around the World

In this edition of Regulation Around the World we review the position regarding beneficial ownership registers which has come into the spotlight following work by the Financial Action Task Force and the introduction of reforms in a number of jurisdictions. Identifying beneficial owners has always been a difficult task for both regulators and financial institutions … Continue Reading

Podcast – Global regulation and conduct series – Cross border distribution of funds: five topics to consider

In the second in our global series of regulatory podcasts focusing on conduct issues, financial services partners from Australia, Hong Kong, Luxembourg, Germany, United Kingdom and the United States consider the cross border distribution of funds by focussing on the following five topics: What trends or industry developments are you seeing in your jurisdiction as … Continue Reading

DAO token holder personal liability continues to take center stage for the CFTC

A seemingly straightforward enforcement action by the Commodities Futures Trading Commission (CFTC) has attracted the attention of US regulators, large digital asset industry players and the crypto industry in general for its potential wide-reaching implications for DAO governance. The CFTC pushed back on various amicus briefs filed by top industry participants in the digital asset … Continue Reading

US SEC proposes new ESG disclosure rules for funds and advisers

On May 25, 2022, the US Securities and Exchange Commission proposed new rules to enhance the regulatory framework for disclosures concerning investment funds and investment advisers’ environmental, social and governance-related (ESG) investing strategies (the Proposed Rules).  If adopted, the Proposed Rules would require SEC-registered advisers to include ESG factors and strategies for investors in fund … Continue Reading

Global financial services webinar – Crypto fund and buy-side developments

Tuesday, 7 June, 2022 08:00 – 09:00 BST / 11:00 – 12:00 GST / 15:00 – 16:00 HKT 11:00 – 12:00 EDT / 16:00 – 17:00 BST / 19:00 – 20:00 GST In this webinar, members of our global financial services team will compare notes on their jurisdiction’s approach to crypto funds. The speakers will … Continue Reading

Wyoming to Recognize DAOs as LLCs

On April 21, 2021, Wyoming Governor Mark Gordon signed Bill 38 into law allowing Wyoming to recognize decentralized autonomous organizations (DAOs) as limited liability companies. The bill was sponsored by Wyoming’s Select Committee on Blockchain, Financial Technology and Digital Innovation Technology and takes effect July 1, 2021. Generally, a DAO is an organization controlled by … Continue Reading

Navigating global crypto-custody requirements

29 April 2021 09:00 – 10:00 BST / 16:00 – 17:00 HKT 16:00 – 17:00 BST / 11:00 – 12:00 EDT As the global crypto-economy continues to grow and mature, one area stands out as a critical core capability: custody. In this webinar, members of our global financial services team will compare notes on their … Continue Reading

Commissioner Peirce Highlights Need for Regulators to Embrace Technology

In recent weeks, Commissioner Hester Peirce of the Securities and Exchange Commission (“SEC”) gave two speeches highlighting the need for legal clarity in the FinTech space and for legacy financial firms to embrace innovation. Speaking at a George Washington University Law School event – Regulating the Digital Economy Conference – Commissioner Peirce discussed the recent … Continue Reading

SEC’s Division of Examinations Releases Risk Alert for Digital Asset Securities

On February 26, 2021, the Securities and Exchange Commission’s (“SEC”) Division of Examinations (the “Division” and formerly known as “OCIE”) released a Risk Alert (the “Risk Alert”) reminding market participants – investment advisers, broker-dealers, exchanges, and transfer agents – of the framework surrounding digital assets that are securities (“Digital Asset Securities”). The Division also set … Continue Reading

SEC Settles with BlueCrest: Algorithmic Trading and AI-Based Strategies Must be Disclosed to Investors

On December 8, 2020, BlueCrest Capital Management Limited (“BlueCrest”), a UK-based investment adviser, agreed to a $170 million settlement with the Securities and Exchange Commission (“SEC”) to settle charges involving insufficient and misleading disclosures to investors that BlueCrest was also operating a proprietary, internal fund, moving its best traders to such fund and replacing the … Continue Reading

OCC Conditionally Approves Bank Charter for Second Crypto Firm

The Office of the Comptroller of the Currency (OCC) granted crypto-focused Protego Trust Company, a Washington state trust company, conditional approval to convert to a national trust bank earlier this month, marking only the second time that a federal bank charter has been approved for a crypto firm – and the first since the January … Continue Reading

US SEC amends rules to simplify and expand the exempt offering framework

On November 2, 2020, in an effort to harmonize and modernize the exempt offering framework under the Securities Act of 1933 (the Securities Act), the US Securities and Exchange Commission (SEC) adopted a final rule entitled “Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets.” In a new legal … Continue Reading

US SEC adopts amendments to expand scope of “accredited investor” definition

On August 26, 2020, the US Securities and Exchange Commission (SEC) adopted amendments to expand the scope of the “accredited investor” definition, allowing a greater pool of investors to access the private capital markets. The amendments add new categories of qualified natural persons who meet certain professional knowledge or certification requirements and expand the list … Continue Reading

SEC and CFTC issue Settlement and Order against Abra simultaneously

In what appears to be a coordinated effort, the Securities Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) both issued orders relating to Plutus Financial—doing business as Abra—and its Philippines-centered partner, Plutus Technologies Philippine Corporation (Plutus Tech). The July 13, 2020 orders found Abra and Plutus Tech had violated sections of the Securities Act … Continue Reading

OCC issues groundbreaking interpretive letter on cryptocurrency custody services

On July 22, 2020, the US Office of the Comptroller of the Currency (OCC) issued an interpretive letter concluding that national banks and federal savings associations have the authority to provide cryptocurrency custody services for customers. The letter, which uses the term “cryptocurrency” to encompass digital currencies, virtual currencies, and “digital assets that are not … Continue Reading

FINRA issues guidance on retail communications relating to private placements

On July 1, 2020, FINRA issued guidance to member firms on compliance with FINRA Rule 2210 (“Rule 2210”)) on the marketing of private placements to retail investors. These private placements are typically conducted under Rules 504, 506(b) or 506(c) of Regulation D under the Securities Act of 1933, as amended, as “safe harbors” that permit … Continue Reading

SEC Proposes Amendments to Increase Reporting Threshold for Institutional Investment Managers

On July 10, 2020, the Securities and Exchange Commission (“SEC”) proposed amendments to amend Form 13F to update the reporting threshold for institutional investment managers and certain other changes. This marks the first time that the reporting threshold would be updated since its introduction more than 40 years ago. Pursuant to Section 13(f) of the … Continue Reading

SEC Proposes New Framework for Fund Valuation Practices

On April 21, 2020, the Securities and Exchange Commission (“SEC”) proposed new Rule 2a-5 under the Investment Company Act of 1940 (the “1940 Act”) to “modernize” the framework for fund valuation practices applicable to mutual funds, business development companies and other “registered investment companies” under the 1940 Act (each, a “fund”). This framework has not … Continue Reading

“Crypto Mom” Proposes 3-Year Safe Harbor for Token Projects

In a speech to the International Blockchain Congress on February 6, 2020, Securities and Exchange (“SEC”) Commissioner Hester Peirce, sometime referred to as “Crypto Mom,” proposed a three-year safe harbor for virtual currency token projects.  The safe harbor would exempt (i) the offer and sale of tokens from the provisions of the Securities Act of … Continue Reading
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