General Counsel
Tw Li

October 14, 2021

Don't Be a Nudge

SEC Investor Advocate: The Rise of DEPs Exposes "Significant Flaws" in Reg BI

Steven Lofchie

Commentary by Steven Lofchie

SEC Investor Advocate Rick Fleming expressed concern that the use of digital engagement practices blurs the distinction between solicited and unsolicited trading under Regulation Best Interest.

"In my view, for Reg BI to remain a relevant and useful regulation in this era of gamification, the Commission should make clear that 'recommendations' include instances where a broker-dealer utilizes DEPs to nudge investors in a way that reasonably could be viewed as encouraging trading, and the Commission should use its enforcement authority to back up its position."

SEC Investor Advocate Rick Fleming

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NYLS Event

SEC Enforcement Director Outlines a More Aggressive Approach

Philip S. Khinda

Commentary by Philip S. Khinda

SEC Division of Enforcement Director Gurbir Grewal asserted that the "decline in trust in our financial markets" is in part a result of "repeated lapses by large businesses, gatekeepers, and other market participants." He said that regulators do not hold them sufficiently accountable.

Biden Administration Highlights Counter-Ransomware Efforts

The Biden Administration outlined its ongoing efforts to counter ransomware extortion attacks.

Broker-Dealer Settles NYSE American Charges for Order Routing Recordkeeping Violations

A broker-dealer settled NYSE American LLC charges for (i) failing to keep accurate records of manual customer orders that were routed to the NYSE American Options floor, and (ii) related supervisory violations.

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