Securities — any “fungible, negotiable financial instrument that holds some type of monetary value” — must be registered with the Securities and Exchange Commission (SEC). Exemptions exist, such as Rule 506(c) of Regulation D. Generally speaking, before a security can be promoted, sold, or traded, it must be registered or issued pursuat to an exemption from the registration requirement. Failing to register a security carries some pretty heavy consequences, as we will discuss more fully below. Among them, however, is this: selling or attempting to sell unregistered securities is a felony.

Led by the Office of the Advocate for Small Business Capital Formation, every year, the Securities and Exchange Commission (SEC) hosts a Small Business Forum where members of both the public and private sectors get together to discuss how the SEC might improve its policies affecting how small businesses raise capital for investors.

The U.S. Securities and Exchange Commission (SEC) recently instituted administrative proceedings and issued a cease-and-desist order with sanctions against an Idaho-based investment adviser firm. According to the SEC’s order, Inspire Investing, LLC (“Inspire” or “Inspire Investing”) materially misled investors as to its so-called “biblically responsible investing” strategy.

Federal Reserve Chair Jerome Powell (“Powell”) gave a much-anticipated speech recently at the Jackson Hole Economic Symposium — the invitation-only summit hosted each year by the Kansas City Federal Reserve.

In his keynote address, Powell examined the current economic situation for the nation and outlined the path ahead for monetary policy.

On March 8, 2024, an important new Bill was passed in the U.S. House of Representatives.  

According to Patrick McHenry (NC-10), Chairman of the House Financial Services Committee, the new Bill — H.R. 2799, known as the “Expanding Access to Capital Act” (the “Bill”) — builds on the success of the 2012 Jumpstart Our Business Startups Act (the “JOBS Act”). 

The new Bill is expected to provide several benefits for investors and the economy. 

In our rapidly evolving financial landscape, knowing your customer is a critical part of the onboarding process. As technology advances and investment fraud reaches new heights, financial institutions and businesses are under increasing pressure to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. 

The fintech industry has rapidly emerged as a dynamic and transformative force in the financial sector, leveraging technology to enhance financial services' efficiency, accessibility, and customer experience. With innovations ranging from digital banking to blockchain, fintech startups are disrupting traditional financial models and unlocking new growth opportunities.

The Securities and Exchange Commission (SEC) has been turning its attention to investment advisers recently. After amending the Investment Advisers Act in March of 2024  to crack down on online investment advisers’ responsibilities, the SEC, along with federal regulators, is now taking the “know your customer” (“KYC”) requirement that applies to banks, wealth management firms, fintechs, insurance companies, broker-dealers, and, indeed, any business that opens and maintains financial accounts for customers — and applying it to investment advisers.