Daily Archives: March 7, 2019, 3:27 pm

SEC Enforcement for Internal Control Failures

On January 29, 2019, the SEC announced four settlements with publicly-traded companies for failure to maintain adequate internal control over financial reporting (ICFR). None of the companies was charged with making false or inaccurate statements, either about its ICFR or otherwise; indeed, each had repeatedly disclosed material weaknesses in ICFR over many years. These cases are interesting for at least…

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The Time Has Come to Address Rule 10b5-1 Trading Plans and Their Shortcomings | New York Law Journal

This proposed legislation creates an opportunity to address the criticism the Rule has faced and can further curtail incidents of insider trading by preventing the successful manipulation of trading plans. The bill directs the SEC to consider whether Rule 10b5-1 should be amended to: (1) limit an insider’s ability to adopt a trading plan during a particular timeframe; (2) limit the…

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Fraud in Cryptocurrency, and How the SEC Is Applying Federal Securities Laws to Stop It | New York Law Journal

The cryptocurrency space continues to grow rapidly, and multiple federal and state agencies are trying to regulate these evolving markets. It remains unclear which agencies are best suited for the task, and whether existing laws are well designed to protect the public from this market’s inherent risks. The disclosure-based federal securities laws would seem to offer little protection to, for…

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