The Financial Industry Regulatory Authority on Thursday struck a deal with a TD Bank unit that it says dropped the ball on recording the required review of 3.1 million securities-related emails and messages sent both internally and to clients.
The U.S. Securities and Exchange Commission issued a no-action letter Wednesday agreeing that broker-dealers can set their own commissions for sales of certain mutual funds, relief that could help brokers and the fund industry adapt to the U.S. Department of Labor’s new fiduciary rule.
New York Attorney General Eric Schneiderman on Thursday closed the book on a four-year investigation into a Citigroup subsidiary that revealed over 47,000 customers were overcharged by more than $22.5 million in fees on their managed investment accounts.
A New York bankruptcy judge Thursday held Ironshore Insurance Ltd. and other insurers in contempt for seeking a Bermuda court’s help blocking litigation accusing them of wrongfully refusing to help pay a massive settlement in connection with MF Global's collapse.
The Financial Industry Regulatory Authority on Wednesday cut a deal with an investment firm that it says misunderstood the Dodd-Frank Act, which allegedly resulted in a lack of supervision over employees’ recommendations to customers to liquidate their securities in order to purchase equity-indexed annuities.
A unit of Investment Technology Group Inc. agreed to pay more than $24.4 million to the U.S. Securities and Exchange Commission to settle charges it obtained American securities of foreign companies without gaining the underlying foreign shares, the agency announced Thursday.
The U.S. Commodities Futures Trading Commission announced Wednesday that it has penalized J.P. Morgan’s securities division for failing to ensure customers weren’t being overbilled for clearinghouse fees on orders placed on the Chicago Mercantile Exchange and other exchanges.
Visium Asset Management LP general counsel David Keily told a Manhattan federal jury Wednesday that hedge fund brass made little or no effort to comply with guidelines for properly valuing debt securities during the years in which prosecutors say former portfolio manager Stefan Lumiere schemed to overvalue a $480 million debt fund.
Philadelphia-based real estate investment trust Hersha Hospitality Trust said Wednesday it has closed on its sale of two D.C. metro-area hotels, reaping $62 million, and has extended the closing period on three properties the company is selling in the western U.S.
An Illinois federal judge on Wednesday approved a $4.2 million settlement of a class action brought by retirement funds against Northern Trust Co., closing the door on nearly eight years of litigation over the company's investment of fund money in Lehman Brothers Holdings Inc. and CIT Group Inc. shares.
A Delaware bankruptcy judge said Tuesday that the trustee for Fisker Automotive cannot back-burner $14 million in claims by certain investors who owned membership stakes in the bankrupt electric-car maker, finding the investors' interests were not directly issued by the company and were outside its control.
Hospitality Properties Trust said Tuesday that it has priced a $600 million underwritten public offering of senior notes with guidance from Sullivan & Worcester LLP, which the real estate investment trust will look to use to pay down debt.
An Illinois federal judge has granted the U.S. Commodity Futures Trading Commission’s motion for a default judgment against the firm run by a U.K. futures trader who pled guilty to charges over the 2010 Wall Street “flash crash,” putting the firm on the hook for the trader’s $38.6 million fine.
RAIT Financial Trust on Tuesday said that it has recently sold four apartment properties in separate deals totaling $109.2 million, as the real estate investment trust looks to focus on its lending business and reduce debt.
Brookfield Asset Management has laid out several alternative acquisition proposals for TerraForm Power, as the Canadian alternative asset manager continues its monthslong pursuit of bankrupt solar company SunEdison’s yieldco, according to a Tuesday regulatory filing.
The appeal of a summary judgment in favor of a woman accused of stealing her former employer’s customer database was ordered held in abeyance by the Second Circuit Tuesday until a related appeal of a case that has roots in the Cayman Islands is decided.
An Illinois federal judge on Tuesday refused to dismiss an offshoot of the $179 million First Farmers Financial fraud, in which the receiver managing the scam's aftermath accused a hospitality company executive of collecting an undeserved $850,000 from the loan company’s owner.
New York State’s highest court has slapped down an earlier state appellate division ruling against investment firm Stonehill Capital Management that permitted parties to back out of agreed-upon securities trades without a written sales agreement, saying oral or emailed agreements are sufficient.
Lehman Brothers Holdings Inc. and the U.S. government have settled a dispute over a $67.1 million federal tax refund claimed by the bankrupt investment firm for United Kingdom taxes, with Lehman Brothers getting a tenth of that figure while dodging more than $18 million in related penalties.
The Second Circuit on Tuesday denied the bail pending appeal motion of a New York woman convicted in the Agape World Inc. Ponzi scheme run by a man dubbed the "mini-Madoff," dashing the woman’s hopes on the day before she was scheduled to report to federal prison.
In its first opinion addressing the scope of insider trading liability in nearly 20 years, the U.S. Supreme Court limited its holding in Salman to gifts to friends or relatives, providing little clarity about the scope of the personal benefit requirement outside of that context, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.
The first paragraph of Philip Hirschkop’s obituary is going to contain the word "Loving." That’s undeniable. But many of Hirschkop’s other cases are just as groundbreaking in their own right. They aren’t household names like Loving, but they have affected millions in the nation’s households, says Randy Maniloff of White and Williams LLP.
Why have asset managers — and private fund managers in particular — recently come under intense scrutiny? A review of the record suggests that today’s heightened scrutiny dates back to 2004, says Julie Riewe, partner at Debevoise & Plimpton LLP and former co-chief of the U.S. Securities and Exchange Commission's Asset Management Unit.
Lincoln Financial Securities Corporation's recent settlement with FINRA over the exposure of confidential customer information highlights the need for firms to scrutinize carefully both their own security policies and those of their third-party vendors, say Glen Kopp and Laura Prebeck Hang of Bracewell LLP.
U.S. District Judge Jed Rakoff in U.S. Securities and Exchange Commission v. Payton recently denied a motion for a new trial by two remote tippees found guilty of insider trading. An interesting aspect of the decision is the court’s treatment of whether the tippees knew or should have known that the tipper had breached his duty of confidentiality, says Jonathan Richman of Proskauer Rose LLP.
An Illinois bankruptcy judge in the case of Caesars Entertainment recently denied payment of indenture trustee Wilmington Trust’s attorneys’ fees and costs in connection with the debtors’ motion to approve a settlement. The strict interpretation of the Bankruptcy Code in this case will hamper the timing and implementation of settlements with bondholders in large, complex cases, says Karol Denniston of Squire Patton Boggs LLP.
Can investment advisers and broker-dealers safely engage outside compliance consultants, rely on their advice, and expect to be able to use that advice as a defense in a regulatory proceeding? Unfortunately, given the recent case of Robare, the answers to these questions are not entirely clear, say Brian Rubin and Rebekah Runyon of Sutherland Asbill & Brennan LLP.
Not only do smaller funds have a very different risk profile from their larger institutional counterparts, but they also are likely to have fewer compliance resources available to focus on potential anti-money laundering violations. Another issue for smaller funds is the structure of their investments, say members of EisnerAmper LLP.
As law firms and clients conduct more business on a regional or national scale, multijurisdictional practice is becoming more prevalent for practicing attorneys. Attorneys engaged in both private practice and as in-house counsel need to be aware of the ethical risks of practicing across jurisdictions — including the implications of engaging in the unauthorized practice of law, say Melinda Gentile and Monique Cardenas of Peckar & Abramson PC.
It is increasingly necessary for law firms to implement strategies to improve efficiency, staffing and value to meet client needs. Haley Altman, CEO and co-founder of Doxly Inc., discusses how to successfully leverage analytical tools and emerging technology to increase profitability.