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Steven Lofchie
Partner
Fried, Frank, Harris, Shriver & Jacobson LLP

Steven Lofchie, a partner in the Financial Services Group, concentrates his practice in advising financial institutions on regulatory issues and on derivatives and other financial instruments. He is consistently recognized in the United States by Chambers USA, Legal 500, and IFLR 1000 in the areas of financial services regulation and derivatives. The Best Lawyers in America also selected Steven as one of the nation's leading lawyers in several areas including: Administrative/Regulatory, Derivatives and Futures, Securities/Capital Markets, and Securities Regulation Law. He is the author of Lofchie’s Guide to Broker-Dealer Regulation (4th ed. 2011), considered the leading treatise in the field.  In 2014, he testified before a subcommittee of the House on equity market structure.

Steven counsels funds (private and both SEC and CFTC-registered), broker-dealers, and banks regarding regulatory and transactional issues. His regulatory practice addresses virtually all the securities-law related statutory and regulatory requirements applicable to these institutions and their affiliates.

Steven represents many financial entities and their investment advisers on trading.

His transactional practice focuses on over-the-counter derivatives, securities financing, and trading agreements (from prime brokerage to the use of asset-backed structures for the financing of investments in hedge funds), and various types of licensing and membership agreements.

Steven is a frequent writer and speaker on financial regulation and policy. In 2014, he testified before a subcommittee of the House on equity market structure. In addition, he has been very active in developing web-based compliance tools, online compliance manuals, research tools and document analysis systems. These tools are available through www.findknowdo.com.

Fried Frank Regulatory Intelligence includes:

Fried Frank Regulatory Intelligence also hosts tens of thousands of other documents, including statutes, rules, no-action letters, releases, case law and relevant legislation.

Steven received his B.A. from Sarah Lawrence College and has an M.B.A. from Columbia Business School, where he was a General Motors Fellow. He received his J.D. from Yale Law School, where he was a member of the Yale Law Journal.

He also serves as a Senior Fellow on financial regulation at the Center for Financial Stability, a nonpartisan financial industry think tank.

Practice Areas

  • Bank Regulation
  • Broker-Dealer Regulation
  • Commodities & Futures Regulation
  • Derivatives & Structured Products
  • Financial Regulation
  • Investment Management
  • Investment Management Litigation
  • Investment Management Regulation & Compliance
  • Investment Management Transactions
  • OTC Derivatives
  • Structured Products
  • Swap Regulation

Admissions

  • U.S. District Court, Southern District of New York
  • New York

Education

  • Yale Law School J.D., 1989
  • Columbia Business School M.B.A., 1984
  • Sarah Lawrence College B.A., 1979

Recent Articles & Comments

September 28, 2022

Commissioner Pham's proposal would position the CFTC well should it obtain authority to become the direct regulator of those digital assets that are deemed to be "commodities." (Currently, the CFTC would only have anti-fraud authority over such products, but the agency is pushing to be granted regulatory authority as well.)

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September 27, 2022

These cases demonstrate no systemic effort to conceal information from the SEC. The communications technology just moved ahead of the recordkeeping technology. While penalties were doubtless warranted, there should be some greater proportionality between the underlying violation and the penalty. That seems to be lacking here.

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September 26, 2022

At a time when U.S. regulators are clearly pursuing enforcement actions against digital assets, it is really not prudent to publicly market a product to retail investors in illegal off-exchange swaps and proclaim one of the product's advantages is that it allows evasion of AML regulations. It only compounds the idiocy to announce that one is converting the operation of the protocol to a DAO so as to avoid regulatory obligations.

In situations such as this (where there is obvious…

September 23, 2022

The investment adviser was essentially dead in the water as far as the finding of a compliance violation goes because it failed to follow its own procedures.

Leaving that aside, the question of whether wrap fee accounts are worthwhile for clients is more complicated than how many times the client trades. As the enforcement action notes, the services of a broker-dealer and an investment adviser are somewhat different: The adviser has the task of monitoring the client's account on an…