Commentary by Sebastian Souchet
SEC Commissioner Allison Herren Lee addressed questions on the scope and application of Regulation Best Interest, speaking to (i) what constitutes a “recommendation” under Reg BI, and (ii) firms’ conflicts of interest in light of developments in the securities markets.
The SEC amended its rule under the Advisers Act that permits advisers to charge performance-based compensation to “qualified clients.” The amendments are intended to "streamline" the process for adjusting the assets-under-management and net worth tests for inflation.
The SEC charged a global management consulting firm partner with trading on material nonpublic information taken from the firm and its clients.
The Congressional Research Service summarized current legal standards for insider trading, and described legislative reform efforts to "codify the elements of the offense and fill perceived gaps in existing doctrine."
The SEC instituted proceedings halting the effectiveness of a Wyoming-based digital asset company's registration of two digital tokens as securities.