Court Upholds SEC Ruling on Multimanager exemptive order By John M. Baker, Esq. The U.S. Court of Appeals for the D.C. Circuit on Friday rejected an appeal by Fund Democracy, LLC from an order of the Securities and Exchange Commission denying Fund Democracy’s request for a hearing on a multimanager […]
Other
Concept Release on Exchange Traded Funds – 2001
Actively Managed ETFs Raise Questions and Request for Comments By John M. Baker, Esq. The Securities and Exchange Commission on Thursday issued a concept release seeking comments on actively managed exchange-traded funds, or ETFs. Actively Managed Exchange-Traded Funds, Release No. IC-25258 (Nov. 8, 2001). All existing ETFs are based on […]
SEC Proposed Equity Compensation Plan Disclosures
Annual disclosure will be required By John M. Baker, Esq. The SEC recently proposed enhanced disclosure of the number of securities authorized for issuance under, and received by or allocated to participants pursuant to, equity compensation plans. Release Nos. 33-7944, 34-43892, 66 Fed. Reg. 8732 (Jan. 26, 2001). Current rules […]
Members Must Make Timely Payments of Court Awards
NAC Extends Interpretations of 2110 to include court awards By John M. Baker, Esq. The National Adjudicatory Council, which is the national committee that reviews initial decisions rendered in NASD disciplinary proceedings, has ruled that NASD rules require the timely payment of court awards. Division of Enforcement v. Shvarts, […]
SEC Proposed Definition of Qualified Purchaser
Important Change for NSMIA Pre-emption By Richard I. Alvarez, Esq. This is the first in a series of periodic bulletins covering new developments in state securities, or Blue Sky, laws which may be of special interest. Topics will range from notice of new rule proposals from the various state securities […]
Wolves For The Small Business Sheep
By Mark J. Astarita, Esq. As the regulatory environment in the corporate finance area becomes less restrictive, in order to permit smaller companies to obtain access to financing that the myriad of traditional regulation makes cost prohibitive, the relaxed regulations often open doors to scams and frauds – not necessarily […]
Perrino Report
NASD FILES “PERINO REPORT” AMENDMENTS: Responding to the Perino Report, NASD seeks revisions on arbitrator disclosure and removal standards, plus it is narrowing its “public” and “non-public” arbitrator classifications. The amendments NASD proposes to Rules 10308 and 10312 parallel those we described in last week’s report on NYSE’s rule changes […]
Prime Bank Fraud Action by SEC
Another Prime Bank Fraud Action Commenced by SEC December 20, 2000. The SEC announced today that it filed an action against Phillip Ezell, a resident of Fort Wayne, Indiana, for offering fictitious “prime bank” instruments over the Internet from March 1998 to August 2000. The Commission alleges that Ezell, doing […]
GAO Report on Blue Sky Revenue Released
Blue Sky Filings Become a Cash Cow By John M. Baker, Esq. Blue sky filings are quite the cash cow, according to a recent General Accounting Office report. Expenditures and Revenues of State Securities Regulatory Agencies, No. GAO/GGD-00-189R (Aug. 15, 2000). For example, in 1999 the 46 jurisdictions reporting usable […]
