Articles in Securities Regulation

CONGRESS REVERSES COURSE; ELIMINATES SEC EXEMPTION TO FREEDOM OF INFORMATION ACT

Date: September 30th, 2010

One of the most controversial provisions of the Dodd-Frank Wall Street Reform and Consumer Protection (Dodd-Frank Act), recently signed into law by President Obama, is Section 929I, which allows the Securities and Exchange Commission (SEC) to withhold documents requested by the public pursuant to the … Read More »

AMENDMENT TO PRESERVE REGULATION D PASSES

The following press release is also available here. ANGEL INVESTOR AMENDMENT PASSES May 17, 2010 WASHINGTON, D.C. – A bipartisan group of Senators tonight scored a victory that will provide strong protections for investors while promoting small business startups vital to job creation. A bipartisan … Read More »

UPDATE: AMENDMENT PROPOSED TO PRESERVE REGULATION D

On May 13, 2010, an amendment was proposed to Senator Dodd’s financial regulation reform bill that would largely preserve the current state of Regulation D.  The amendment, SA 4037, calls for the following: – Maintain the current net worth criteria for Accredited Investors at $1 … Read More »

FINANCIAL REGULATION OVERHAUL THREATENS STARTUP COMPANY FINANCING

Date: April 30th, 2010

Regardless of your political persuasion, if you are an entrepreneur running a startup company you should be nervous about the financial regulation overhaul bill currently being debated in the U.S. Senate.  Known as the “Restoring American Financial Stability Act,” the pending bill threatens to do … Read More »

CONVERTIBLE PROMISSORY NOTES ARE NOT ALWAYS SECURITIES

Date: February 25th, 2010

Since the 1946 U.S. Supreme Court decision in Securities & Exchange Commission v. Howey, securities lawyers have known the test for determining whether a financial instrument or contract is a security. As the Howey Court put it: “The test is whether the scheme involves an … Read More »

FINRA ADVISES SECURITIES FIRMS AND BROKERS TO MONITOR SOCIAL MEDIA WEBSITES

Date: February 5th, 2010

The Financial Industry Regulatory Authority (FINRA) recently issued guidance to securities firms and brokers regarding the use of social media websites to communicate with the public. The guidance, Notice 10-06, is based on input from FINRA’s Social Networking Task Force, which was organized in September … Read More »