mary tolbert

Details Section 13(b)(2)(B) of the Securities Exchange Act of 1934 requires public companies to “devise and maintain a system of internal accounting controls.” In a recent opinion, a New York federal court rejected the Securities Exchange Commission’s (SEC) argument that a public issuer violates Section 13(b)(2)(B) when it fails to implement an adequate system of cybersecurity controls. The SEC had some success with this legal theory in administrative enforcement actions.

Details The Supreme Court of the United States (SCOTUS) issued two opinions in the past week that are likely to have a longer-term effect on the way securities industry matters are handled. Juries, not the Securities Exchange Commission (SEC), should decide legal issues like fraud. In Sec. & Exch. Comm'n v.

Details The Financial Industry Regulatory Authority (FINRA) published guidance* to remind parties, attorneys, arbitrators, and mediators that the unauthorized disclosure of a Suspicious Activity Report (SAR) is a violation of federal law that may be punishable by civil and criminal penalties, including fines and imprisonment. The rules governing the confidential treatment of SARs are strict, and the penalties for violating those rules can be significant.