Investment Companies Archives

What to Do If You Have Been Sued for Breach of Contract – Business Disputes: Mitigate, Mediate and Safeguard

January 13, 2025 by Dharmi Mehta

In this blog post titled, “What to do if you have been Sued for Breach of Contract,” Litigation attorney, Ms. Mehta offers key steps to take that can help resolve a dispute amicably or at least limit the damage to the business. All businesses run a risk of dispute at some point, from partner and shareholder disagreements to complaints and litigious action from external sources. No matter what the source or reason, disputes remain a source of stress, a drain on resources and a distraction if not a derailment from business goals.… Read More

Top SEC Enforcement Actions of 2024 and What Investment Advisers and Broker-Dealers Can Learn from Them

December 20, 2024 by M. Jacko

The U.S. Securities and Exchange Commission (“SEC”) continued to play a vital role in ensuring firms’ compliance with securities regulations in its mission to protect investors and promote transparency. In 2024, enforcement actions resulted in a record-breaking $8.2 billion in financial remedies. Interestingly, the number of enforcement actions dropped by 26% compared to 2023, as the SEC adopted a new strategy of high-impact actions and promoting self-reporting.

Areas that received the most scrutiny this year included emerging technology and alternative currency, off-channel communications, and cybersecurity.

This month’s Risk Management Tip focuses on five key SEC enforcement actions and violations of 2024, and how investment advisers, broker-dealers, and others can use these lessons to enhance their compliance programs and avoid costly mistakes.… Read More

Key Compliance Considerations for Third-Party Vendor Oversight

December 18, 2024 by Jacko Law Group, PC

FINRA and the SEC focus on protecting clients’ interests by covering all potential risk areas that could harm investors.

One pivotal area for financial firms to consider is their due diligence efforts related to third-party service providers. Third-party service providers are an extension of your firm. Regardless of whether the vendor is deemed critical or non-critical (Read more on this here), if not properly vetted and continuously supervised, weak controls by your vendor can expose your firm, and by extension, your clients to a range of risks.
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Potential Impact of the CTA Enforcement Ban in Texas Top Cop Shop v. Garland et al.

December 13, 2024 by Jacko Law Group, PC

On December 3, 2024, the U.S. District Court for the Eastern District of Texas filed a preliminary injunction blocking the enforcement of the Corporate Transparency Act (CTA), which mandates companies disclose beneficial ownership information. This injunction was issued in response to the case, Texas Top Cop Shop v. Garland et al. (Case 4:24-cv-00478). Texas Judge Mazzant, who issued the judgment, ruled that corporate regulation falls under state jurisdiction, not federal.
… Read More

Business Disputes: Mitigate, Mediate and Safeguard – Breach of Contract

December 2, 2024 by Jacko Law Group, PC

Business litigation encompasses a wide range of legal disputes. It is a risk that comes with operating a company. Business disputes can range from Breach of Contract claims to Client complaints. These conflicts are challenging for any business and can drain resources, damage reputations, and derail business objectives.

The first defense is knowing and understanding the potential disputes that can threaten the business. In this Litigation Blog Series titled, “Business Disputes: Mitigate, Mediate, and Safeguard,” we will cover the major disputes that businesses may come across, and steps on how to navigate them.

This post provides an overview of Breach of Contract. Moreso, allegations against a business or business owner for failure to fulfil their obligations under a legal agreement.… Read More

Privacy, Cybersecurity, and Other Protections for Investors

November 27, 2024 by Kathryn Konzen

Structuring a business strategically plays a major role in optimizing benefits and in protecting the business from potential issues. Another important facet of strategically structuring a business is to plan for the unexpected and put in place safety nets and contingency plans in the event of a business threat. This is the core principle of risk mitigation. What happens if a business owner is unable or unwilling to pay off a personal debt? Can creditors come after their business assets? It depends.… Read More

SEC Releases EXAMS Priorities for 2025

October 23, 2024 by Jacko Law Group, PC

On Oct. 21, 2024 , the US Securities Exchange Commission (“SEC”) published a press release announcing their 2025 Examination Priorities. Many of the focus areas come as no surprise, as the SEC has diligently alerted industry and investors alike to what their areas of concern have been throughout the year. There are, however, a few areas that registrants may find require an extra review or a deeper dive.… Read More

Regulatory Focus On Off-Channel Communications: What You Need to Know for Your Compliance Program

October 15, 2024 by M. Jacko

Director of Operations and Counsel Kathryn Konzen, Esq. explores the vulnerabilities to cyberattacks in the financial sector in the article titled “Cybersecurity: Regulatory Compliance, Attacks, and Risk Mitigation,” published in GRC Outlook. The article offers insight into why the sector remains a target for cybercriminals and how to mitigate cyber risks.… Read More

Private Funds Adviser Charged for Integration Doctrine Violations

October 15, 2024 by Jacko Law Group, PC

The Securities Exchange Commission (“SEC”) recently charged a Private Funds Adviser for violations of the Registration and Custody rules, specifically as they relate to integration doctrines.

This is the first SEC enforcement action in over ten years against an Investment Adviser for violations against the Integration Doctrine. The Integration Doctrine is set forth in Rule 152 of the Securities Act of 1933 and prevents the separating of single offerings into multiple offerings to take advantage of exemptions that would otherwise not be available if the offering was not divided.… Read More

Policies and Procedures- SEC Priorities and Areas of Scrutiny

September 13, 2024 by Jacko Law Group, PC

As part of any Compliance Program, your Policies and Procedures provide one of the strongest internal controls for what to do, and when. Policies and Procedures are critical for helping to mitigate risk and provide direction to employees on how to comply with the various securities regulations that govern your business. That is why it is so important, prior to year-end, to review and update Policies and Procedures to ensure they are customized to your business practices, with consideration for new regulations and use of technology to help govern your firm.… Read More