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EB-5 Insights Where Government Policies and Business Realities Converge

Tag Archives: SEC

Posted in Securities Law

FINRA recently issued Notice to Members 17-42, which proposes sweeping changes to the process by which a securities broker may seek to expunge reference to a customer complaint from his or her public record.  The comment period for the proposed rule amendments ended on Feb. 5, 2018.  The proposed changes will now to go the… Continue Reading

Posted in Investment, Securities Law

On Thursday, July 27, regulators and industry professionals gathered in Washington, D.C. to discuss the current regulatory environment, cybersecurity, and other hot topics at the SEC and FINRA’s 2017 National Compliance Outreach Program for Broker-Dealers. The panelists, including SEC Commissioner Michael Piwowar, FINRA President and CEO Robert Cook, and Susan Axelrod, the Executive Vice President of… Continue Reading

Posted in EB-5, Events

Greenberg Traurig attorneys Kate Kalmykov and Jennifer Hermansky will be speaking at the 2016 AILA EB-5 Conference to be held Oct. 24-25, 2016, at the Renaissance Washington, D.C. Downtown Hotel in Washington, D.C.  Kate will speak on a panel entitled Securities Enforcement by SEC, State, and Private Parties along with the SEC Deputy Director of… Continue Reading

Posted in Department of Homeland Security, EB-5 Investment, EB-5 Program, Immigration, USCIS

Due to the complex intersection of real estate, corporate, securities and immigration law (among others), an investment in a company under the EB-5 Program can be a complicated affair. One of the reasons an EB-5 investment is complicated has to do with U.S. governmental regulatory bodies with potential oversight over an EB-5 investment. The following… Continue Reading

Posted in EB-5 Investment, EB-5 Program, Immigration

In the United States, there are very strict laws in place to protect investors.  These laws are administered by a governmental agency known as the U.S. Securities and Exchange Commission (SEC).  The mission of this agency is to regulate the U.S. markets, protect investors from fraud, ensure fair, systematic, and efficient markets, and facilitate capital… Continue Reading

Posted in EB-5 Investment, Securities Law

Nearly all U.S. broker-dealers are members of the Financial Industry Regulatory Authority (FINRA).  FINRA regulates, and provides oversight and guidance for its member firms.  When a broker-dealer becomes a FINRA member, they enter into a membership agreement which, among other things, specifies which financial products and services the broker-dealer is permitted to offer to its… Continue Reading

Posted in EB-5 Program

Earlier this month, the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) each published their 2016 exam priorities letters. Each agency publishes an exam priority letter annually in which they identify topics of examination focus for the coming year, recurring challenges faced by firms, and perceived areas of heightened risk to… Continue Reading

Posted in EB-5 Program, Securities Law

Last week, the U.S. Securities and Exchange Commission (SEC) announced a series of enforcement actions against lawyers across the country, charging them with offering EB-5 investments and receiving compensation while not registered to act as brokers. According to the SEC, the attorneys and firms involved in these matters assisted in the facilitation of investment sales… Continue Reading

Posted in EB-5 Program

Yesterday, new FINRA Rule 2040 became effective.  The rule was approved by the SEC earlier this year.  Rule 2040(c) requires a broker-dealer who sells EB-5 securities disclose to investors the amount of fees paid to foreign finders.  In addition, a broker-dealer must receive written acknowledgement from an investor which shows that the investor is aware… Continue Reading

Posted in EB-5 Investment, EB-5 Project, Securities Law

Yesterday, the U.S. Securities and Exchange Commission (SEC) ordered a US-based foreign finder operation to cease and desist from operation as an unlicensed broker-dealer.  The charges are some of the first against brokers handling investments in the EB-5 Immigrant Investor Program and follow earlier SEC actions against fraudulent EB-5 offerings. According to the SEC’s order,… Continue Reading

Posted in Securities Law

After a nationwide conference call of industry participants sponsored by agencies of the U.S. government and several years of cautionary discussions, through its recent actions, the agency that regulates securities sales in the United States, the Securities and Exchange Commission (SEC), and its self-regulatory arm, the Financial Industry Regulatory Authority (FINRA), have made compliance with… Continue Reading

Posted in Securities Law

Written by Terry R. Weiss and Matthew S. Johns In the wake of recent cybersecurity breaches, the SEC and FINRA simultaneously issued reports this week to the securities industry summarizing cybersecurity examination findings and to investors recommending certain precautions to safeguard online investment information. In its Risk Alert – Cybersecurity Examination Sweep Summary, the SEC… Continue Reading

Posted in Securities Law

Written by Richard M. Cutshall and Arthur Don On Jan. 13, 2015, the SEC’s Office of Compliance Inspections and Examinations released its annual list of examination priorities for 2015. This GT Alert provides an overview of the examination priorities, and highlights how most securities industry participants – registered investment advisers, broker-dealers, registered investment companies and… Continue Reading

Posted in Securities Law

Written by Richard M. Cutshall, Steven M. Felsenstein, and Carl A. Fornaris On Dec. 30, 2014, the SEC approved a proposed rule change pursuant to which FINRA is adopting a revised version of NASD Rule 3010(e) concerning background investigations of proposed registered representatives and adding a new obligation for member firms’ written supervisory procedures to require… Continue Reading

Posted in Inspector General

On December 12, 2013, the Office of the Inspector General (“OIG”)  for the Department of Homeland Security (“DHS”) released a long awaited report analyzing the United States Citizenship and Immigration Services (“USCIS”) administration of the EB-5 Regional Center program. Please see previous posts about the investigation. The report contains four recommendations of which USCIS concurred… Continue Reading

Posted in EB-5 Program, Securities Law

AILA recently updated their executive summary of the USCIS EB-5 Engagement with the Securities and Exchange Commission (“SEC”). The two page document contains a summary of the highlights from the important April 3, 2013, teleconference with the USCIS and SEC. The SEC noted that the definition of a “security” is broad and most EB-5 investments… Continue Reading

Posted in EB-5 Investment, EB-5 Program, Immigrant Investor, Securities Law

Prepared by: Arthur Don | Steven M. Felsenstein  The Investment Regulation Update is a periodic publication providing key regulatory and compliance information relevant to broker-dealers, investment advisers, private funds, registered investment companies and their independent boards, commodity trading advisers, commodity pool operators, futures commission merchants, major swap participants, structured product sponsors and financial institutions.

Posted in EB-5 Program, Marketing, Securities Law

Late last month, Securities and Exchange Commission (SEC) Chairwoman Mary Schapiro announced to the House Oversight and Government Reform Subcommitte that the SEC was not prepared to meet the July 4 deadline on issuing new rules pursuant to the Jumpstart Our Business Startups (“JOBS Act”).  The JOBS Act provides for an ease in the stringent… Continue Reading

Posted in Marketing

Oftentimes, I am asked by clients seeking to raise capital what type of information they can include on their website to inform readers about the investment opportunity. Unfortunately, my answer is that no information may be included unless it is password protected and made available only to individuals that have been pre-screened as eligible “accredited… Continue Reading