Currently, the SEC does not appear to be inclined to extend deadlines for compliance with new Regulation BI and application of Form CRS…
Currently, the Securities and Exchange Commission (SEC) does not appear to be inclined to extend deadlines for compliance with new Regulation BI and application of Form CRS. Members can expect that OCIE inspections after June 30 will address member’s compliance. We believe that the standard for a firm’s compliance will be its good faith attempt to comply and how it documented its compliance efforts.
With respect to Form CRS, firms can start filing and delivering to clients immediately, and do not need to wait until May 1.
From OCIE issued guidance, firm compliance is expected and their examinations can be expected to focus the firm’s planning for implementation. Clients are advised to examine the SEC’s Regulation BI interpretive guidance.
Although a lawsuit was filed, briefed and argued affecting Regulation BI and Form CRS implementation before the Second Circuit, a decision is not anticipated before June 1.
Examinations
Members are recommended to review FINRA’s website devoted to COVID-19 matters Regulatory Notice 20-08, and FAQ’s.
FINRA is coordinating with the SEC staff concerning the SEC definition of ‘qualifying offices’ and refinement of the proposal’s definition of eligible locations. OCIE (and FINRA) can be expected to focus on the supervision of remote offices.
CARES Act Applicants Be Careful
Members who have utilized the capital financing aspects of the CARES Act should take notice that several advocacy groups have already positioned their readiness to make FOIA requests to assure that applicants have met all eligibility standards required and have not abused the purposes of the Act. Potentially, a member’s receipt of funding under the Act could involve future exam-related questions and requests for disclosures.
Enforcement Matters Postponed
FINRA enforcement matters appear to be delayed as scheduled hearings and appeals have been postponed and the defense bar has been diligent in asserting due process and fairness objections to proceeding with OTR’s by zoom or other remote access where counsel is not present with the subject or witness.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact Paul Lieberman, Stan Barrett or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
Nationwide Preliminary Injunction for CTA Filings Lifted
FinCEN Beneficial Owner Reporting Must be Completed by January 13 for pre-2024 Companies On December 23, 2024, the 5th Circuit Court of Appeals lifted the injunction that stayed the enforcement of the Corporate Transparency Act put into place by a federal judge in Texas. The result is that if you are required to file a […]
FinCEN Corporate Transparency Act filings shut down by the US District Court for the Eastern District of Texas
IMPORTANT UPDATE! FinCEN Corporate Transparency Act filings shut down by the US District Court for the Eastern District of Texas Under the Corporate Transparency Act (CTA), entities that were in existence before January 1, 2024 are required to file Beneficial Owner Reports (BOR) with the Financial Crimes Enforcement Network (FinCEN) before January 1, 2025. Requirements […]
New Intoxicating Hemp Law Will Dramatically Affect New Jersey Cannabis, Hemp, and Liquor Industries
On September 12, 2024, Gov. Phil Murphy signed controversial legislation that will dramatically alter New Jersey’s cannabis, hemp, and liquor industries. The new law aims to regulate the influx of intoxicating hemp products into the marketplace by bringing them under the purview of the New Jersey Cannabis Regulatory Commission (CRC). That means that edibles, THC-infused beverages, […]
Wheels Moving on Reclassification of Cannabis as AG Launches Rulemaking Process
On May 16, 2024, President Joe Biden announced that his administration is committed to reclassifying cannabis. Shortly thereafter, Attorney General Merritt Garland initiated the formal rulemaking process to move cannabis from a Schedule I to a Schedule III drug under the Controlled Substances Act (CSA). “This is monumental,” President Biden said in a video statement […]
Two PFAS Are Now Hazardous Substances under CERCLA
The U.S. Environmental Protection Agency (EPA) continues to take significant action regarding the regulation of per- and polyfluoroalkyl substances or PFAS. On April 19, 2024, the EPA released its Final Rule designating PFOA and PFOS as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which will allow EPA to use the […]
Could Your EPA Civil Enforcement Matter Turn Criminal?
Parties involved in a civil enforcement matter by the U.S. Environmental Protection Agency (EPA) could soon find themselves facing even more serious criminal liability. On April 17, 2024, the EPA’s Office of Enforcement and Compliance Assurance announced a new “Strategic Civil-Criminal Enforcement Policy” (Policy). The Policy is effective immediately and applies to all civil and […]
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No Extension of Deadlines for Regulation Best Interest and Form CRS
Author: Scarinci Hollenbeck, LLC
Currently, the SEC does not appear to be inclined to extend deadlines for compliance with new Regulation BI and application of Form CRS…
Currently, the Securities and Exchange Commission (SEC) does not appear to be inclined to extend deadlines for compliance with new Regulation BI and application of Form CRS. Members can expect that OCIE inspections after June 30 will address member’s compliance. We believe that the standard for a firm’s compliance will be its good faith attempt to comply and how it documented its compliance efforts.
With respect to Form CRS, firms can start filing and delivering to clients immediately, and do not need to wait until May 1.
From OCIE issued guidance, firm compliance is expected and their examinations can be expected to focus the firm’s planning for implementation. Clients are advised to examine the SEC’s Regulation BI interpretive guidance.
Although a lawsuit was filed, briefed and argued affecting Regulation BI and Form CRS implementation before the Second Circuit, a decision is not anticipated before June 1.
Examinations
Members are recommended to review FINRA’s website devoted to COVID-19 matters Regulatory Notice 20-08, and FAQ’s.
FINRA is coordinating with the SEC staff concerning the SEC definition of ‘qualifying offices’ and refinement of the proposal’s definition of eligible locations. OCIE (and FINRA) can be expected to focus on the supervision of remote offices.
CARES Act Applicants Be Careful
Members who have utilized the capital financing aspects of the CARES Act should take notice that several advocacy groups have already positioned their readiness to make FOIA requests to assure that applicants have met all eligibility standards required and have not abused the purposes of the Act. Potentially, a member’s receipt of funding under the Act could involve future exam-related questions and requests for disclosures.
Enforcement Matters Postponed
FINRA enforcement matters appear to be delayed as scheduled hearings and appeals have been postponed and the defense bar has been diligent in asserting due process and fairness objections to proceeding with OTR’s by zoom or other remote access where counsel is not present with the subject or witness.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact Paul Lieberman, Stan Barrett or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
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