Authored by Debbie Klis with contributions from Nicole Kalajian and Robin Powers. On August 23, 2023, the Securities and Exchange Commission (“SEC”) issued new final rules that impose significant new requirements on private fund advisers (the “Rules”). [1] The Rules impose limits on awarding preferential rights to certain investors, as well as mandating new disclosure,…

We congratulate our client, OneMedNet Corporation, on the announcement of their de-SPAC transaction with Data Knights Acquisition Corp. The transaction will result in a newly combined company named OneMedNet. Upon closing, OneMedNet will continue to be led by its CEO, Mr. Paul Casey, a 40-year public company veteran with a proven track record driving value…

After more than eight months of a lapsed EB-5 Regional Center Program (the “Program”), Senators Charles Schumer (D-NY) and Charles Grassley (R-IA) have agreed on an EB-5 reform bill (the “EB-5 Reform and Integrity Act” or “Act”) that will re-start the Program, as part of the $1.5 trillion Consolidated Appropriations Act of 2022, the omnibus…

The financial news since the start of 2022 has contained numerous articles concerning the Securities and Exchange Commission’s (“SEC”) more than 50 proposed rules that Chairman Gary Gensler is considering, representing one of the largest regulatory initiatives by the SEC in decades.  Particularly of note, Gensler emphasized his desire for greater competition and efficiency in…

Published by Börsen-Zeitung, Magazine for Financial Markets (Edition 20, January 29, 2022) The regulations of the EU Green Deal are gradually phasing in since March of last year. Issuers are required to report on the sustainability of their business activities. Financial intermediaries need to inform their clients about the sustainability of financial products. Thus, incentives…

On January 27, 2021 the Division of Examinations of the Securities and Exchange Commission published their second risk alert focused on Private Fund Advisor deficiencies commonly noted in connection with their examinations. These include: Conduct Inconsistent with Disclosures Failure to obtain informed consent from Limited Partner Advisory Committees, Advisory Boards or Advisory Committees (collectively “LPACs”)…

Enacted on July 12, 2020, the EU Regulation 2020/852, known as the Taxonomy Regulation, attempts to redirect capital flow and investments towards more “sustainable” activities, while requiring more transparency from certain companies. It is applicable to the following companies, with more than 500 employees over the financial year and a balance sheet of more than…

On September 9, 2021, SEC Chairman Gary Gensler revealed the main components of his agenda in a speech before the SEC’s Investment Advisory Committee, which included: 1. Behavioral Design of Online Trading Platforms and use of DEPs Chairman Gensler discussed the “proliferation” of online trading and management apps and robo-advisers, called digital engagement practices (DEPs).…

On July 26, 2021, a senior U.S. Securities and Exchange Commission official, Allison Lee, advised that Chinese companies listed on U.S. stock exchanges must disclose the potential risks associated with the Chinese government interfering in their businesses, as part of their normal reporting requirements. The genesis of SEC’s comment is believed to be the recent…

On May 19, 2021, the Securities and Exchange Commission (“SEC”) charged a broker-dealer, BTIG, LLC (“BTIG”), with repeatedly violating the (i) order-marking and (ii) locate provisions of Regulation SHO, in connection with more than 90 sale orders from a single hedge fund customer. Regulation SHO regulates short sales of securities and is aimed, in large…