This week, the Securities and Exchange Commission (“SEC“) and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN“) jointly proposed new legislation requiring exempt reporting advisers and registered investment advisers to adopt written customer identification programs (“Proposed Rule“). Complimenting the February FinCEN proposal to designate advisers as “financial institutions” under the Bank Secrecy...
Corporate & Securities
On April 23, 2024, by a close 3-2 vote, the Federal Trade Commission (“FTC”) issued a final rule with a retroactive effect banning non-compete clauses nationwide (“New Rule”). Unless legal challenges delay or block enforcement, the New Rule become effective 120 days after publication in the Federal Register. According to the FTC, the New Rule...
When raising capital, establishing meaningful relationships with investors is essential for success. For private offerings under Rule 506(b) of Regulation D of the Securities Act, this concept is especially imperative. Rule 506(b) exempts issuers of private offerings from the extensive disclosure requirements in public offerings. Unlike Rule 506(c), which permits general solicitation, Rule 506(b) allows...
In 2023, private equity firms faced significant challenges amidst a static market, soaring inflation, elevated interest rates, and slow deal activity. This confluence of factors resulted in an abundance of dry powder held by private equity firms. Such abundance, coupled with anticipated stabilization in the market and increased demand leaves experts anticipating increased M&A activity...
At the beginning of the new year, the Corporate Transparency Act (“CTA”) went into effect, burdening 32 million businesses to submit certain beneficial ownership information (“BOI”) in reports filed with the Financial Crimes Enforcement Network (“FinCEN”). You can find a detailed summary of the CTA and BOI reporting requirements here. Many affected parties have voiced...
Feb82024
Effective January 1, 2024, the Corporate Transparency Act (“CTA”) has come into force, bringing with it substantial reporting obligations on small businesses. Given the stringent reporting obligations, tight reporting deadlines, and steep penalties associated with noncompliance, it is critical to be well informed about the new law and take the necessary steps to adhere to...
SEC ADOPTS NEW PRIVATE FUND ADVISER RULES By: Kamden Crawford, Esq. On August 23, 2023, the Securities and Exchange Commission (“SEC”) finalized new rules under the Investment Advisers Act of 1940 (“Advisers Act”) for advisers of private funds (“New Rules”) with the purpose of enhancing protections to investors in private funds. The New Rules can...
In this video, I go over some of the common areas to look into when looking for a securities lawyer. You want someone specialized so I give you some insight into what I would look for if I were to go out and hire a lawyer to help with a capital raise, securities offering, syndication,...