A holding subjecting Term Loan Bs to securities regulation would have a profound effect on the $1.4 trillion market for syndicated term loans and on financial institutions at a time of limited liquidity.
Continue Reading Are Syndicated Term Loans Securities Under Reves v. Ernst & Young? 2nd Circuit Solicits SEC Views
On Jan. 30, 2020, the Securities and Exchange Commission (SEC) issued (i) guidance regarding the disclosure of key performance indicators (KPIs) and metrics in Management’s Discussion and Analysis, or MD&A (the “Guidance”), which is effective immediately and applies to the upcoming annual reports on Form 10-K and 20-F as well as related earnings releases; and
Yesterday, the new FINRA Rule 2040 became effective. The rule was approved by the SEC earlier this year. Rule 2040(c) requires a broker-dealer who sells EB-5 securities to disclose to investors the amount of fees paid to foreign finders. In addition, a broker-dealer must receive written acknowledgement from an investor which shows that the investor
After a nationwide conference call of industry participants sponsored by agencies of the U.S. government and several years of cautionary discussions, through its recent actions, the agency that regulates securities sales in the United States, the Securities and Exchange Commission (SEC), and its self-regulatory arm, the Financial Industry Regulatory Authority (FINRA), have made compliance with securities laws for those in the EB-5 industry a priority.
According to reports, the SEC may bring actions against as many as 20 individuals who were accepting finders’ fees without being registered as broker-dealers or associated persons of broker-dealers. In addition, FINRA indicated in its recent announcement of examination priorities that it is focused on its members’ due diligence and suitability checks in the sale of private placements, including EB-5 securities.
Continue Reading U.S. Securities Regulators Take Notice of EB-5