By: Neil T. Smith, Hayley Trahan-Liptak, and Sophia A. Khan
The traditional understanding of how the government charges insider trading is evolving, as the Securities and Exchange Commission (SEC) pushes to expand the scope of what constitutes misappropriation of material non-public information (MNPI) under Rule 10b-5.
Read MoreBy: Matthew Rogers and Annabelle North
Following up on its previously-issued Investor Alert warning investors on the use of so-called “AI washing” by advisers in their marketing materials, the Securities and Exchange Commission (SEC) announced on 18 March 2024 the settlements of charges against two investment advisers for “making false and misleading statements about their purported use of artificial intelligence (AI).”
Read MoreBy: Jamie L. Jackson and Yuki Sako
The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (Select Committee) issued a bipartisan report criticizing investments made by US venture capital firms (VC), as well as US institutional investors as limited partners (LP), into companies in the People’s Republic of China (PRC) in artificial intelligence (AI) and semiconductor sectors (Report). In line with the Select Committee’s previously released report strategizing how to reset the United States’ economic and technological competition with China, the Report signals Congress’ intensified interest in curtailing the unintentional flow of US investments into China’s military industrial complex.
Read MoreBy: Hilger von Livonius and Philipp Riedl
As anticipated in our earlier blog on ELTIF 2.0, Regulation (EU) 2023/606 amending the Regulation on European long-term investment funds (ELTIF Regulation) has been in force since 10 January 2024. There is a lot of hope in the German market that the revised ELTIF regime will finally help this product to achieve a breakthrough.
Read MoreBY: TJ Bright and Annabelle North
On 22 January 2024, industry groups representing private investment fund sponsors, including the Alternative Investment Management Association (AIMA), National Association of Private Fund Managers, and Managed Funds Association, filed their first reply to the Securities and Exchange Commission’s (SEC) response in the groups’ ongoing petition against the new private fund adviser rules (PFAR) adopted by the SEC on 23 August 2023.
Read MoreBy: Áine Ní Riain and Lucy Deane
Under the EU PRIIPs Regulation “manufacturers” are required to prepare a key information document (KID) where relevant packaged retail investment products (including most funds) are made available to retail investors.
Read MoreBy: Cheryl Isaac and Wiley Cole
On 4 December 2023, the Commodity Futures Trading Commission (CFTC) proposed guidance on the listing of voluntary carbon credit (VCC) derivative contracts. The proposal outlines how designated contract markets (DCMs), which are CFTC-registered derivatives exchanges, may list VCC derivative contracts while complying with statutory “Core Principles” set forth in the Commodity Exchange Act (CEA) and applicable CFTC rules and regulations.
Read MoreBy: Dylan Moses, Michael Ruck, Rosie Naylor and Joseph Skilton
Under the new UK Economic Crime and Corporate Transparency Act 2023, organisations that are bodies corporate or partnerships will become criminally liable for the economic crimes of their senior managers. They will also have a new liability (albeit subject to an important defence) for failure to prevent their employees and associates from committing fraud.
Read MoreBy: Yuki Sako
On 21 September 2023, the Prime Minister of Japan Kishida unveiled his new policy initiatives to support new entry of managers to Japan. In his speech at the Economic Club of New York, the Prime Minister announced his plan to (i) establish programs to support emerging managers, (ii) seek for legislative and regulatory changes necessary to allow outsourcing of back-office operations, and (iii) launch special business zones targeted for overseas asset managers in which all the regulatory processes are conducted in English and other business and living supports are provided.
Read MoreBy: Megan Clement
On 19 September, U.S. Congress’ Sub-Committee on Capital Markets held a hearing on oversight of the SEC’s Division of Investment Management during which Director William Birdthistle testified on various SEC proposed rules affecting investment funds and advisers.
Read MoreCopyright © 2025, K&L Gates LLP. All Rights Reserved.