On July 13, 2016, the SEC announced its adoption of several amendments that update the SEC’s rules of practice governing its administrative proceedings.  The final amended rules are available here.

As SEC Chair Mary Jo White stated in the SEC’s announcement, “[t]he amendments to [the SEC’s] rules of practice provide parties with additional opportunities to conduct depositions and add flexibility to the timelines of [the SEC’s] administrative proceedings, while continuing to promote the fair and timely resolution of the proceedings.”  For example, under amended Rule 360, orders instituting proceedings would designate the time period for preparation of the initial decision as 30, 75, or 120 days from completion of post-hearing or dispositive motions.  Further, amended Rule 360 extends the length of the pre-hearing period from four months to a maximum of 10 months for cases designated as 120-day proceedings, a maximum of six months for 75-day cases, and a maximum of four months for 30-day cases.

Continue Reading SEC Adopts Amendments Updating its Rules of Practice for Administrative Proceedings

On October 13 from 1 – 2:30 pm ET, join Pam Greene and a panel of other experts for a timely webinar covering Regulation A+: Practical Tips and Guidance for Launching a Mini-IPO. Regulation A+ went into effect in June 2015 to allow private US and Canadian based companies to raise equity – up to $20 million under Tier I and up to $50 million under Tier II – from both accredited and nonaccredited investors, subject to certain limitations.

During this webinar, our distinguished panel, including Pam Greene, member in the Corporate and Securities Practice at Mintz Levin;   TJ Berdzik, CFA, of StockCross Financial Services, Inc.; Maggie Chou, of OTC Markets; Yoel Goldfeder, of Vstock Transfer; and Rudy Singh, of S2 Filings, will discuss the legal and business considerations in launching a Tier II Regulation A+ offering, how investors can achieve liquidity through the OTC Market, and why many are calling Tier II offerings a “Mini-IPO”.

We hope you can take part in what is sure to be an informative discussion. Click here to register.

Our friends over at Floyd Advisory recently released their Summary of Accounting and Auditing Enforcement Releases for the Year Ended December 31, 2014.

Some of the more notable highlights from the report include:

  • In the SEC fiscal year ended September 30, 2014, enforcement actions by the SEC reached an all-time high of 755 compared to the same period in prior years.
  • The 166 enforcement actions against Broker-Dealers in this timeframe constitute an all-time high and represents an increase of 25% from the previous peak in 2012.
  • Actions involving Issuer Reporting and Disclosure issues for this timeframe increased 45% compared with the same period from 2013, and constitutes the first rise in these types of actions since 2007.
  • In actions involving financial reporting issues:
    • 23 involved alleged balance sheet manipulation;
    • 20 involved alleged intentional misstatements of expenses;
    • 19 involved alleged improper revenue recognition;
    • 7 involved alleged manipulation of reserves; and
    • 1 involved alleged options backdating.
  • The SEC entered into 12 settlements involving an admission of wrongdoing by the settling party during the SEC’s fiscal year ending September 30, 2014. There have been two additional such settlements in in Q4 of 2014.
  • Actions involving auditors more than doubled in 2014 compared to 2013 and are at the highest level in 5 years.

Anyone interested in an analysis of the SEC’s enforcement activities in 2014 (and, most likely, a preview of what is to come in 2015), should be sure to read the entire report.