Newsfeed

On 22 January 2025, the United States Securities and Exchange Commission (US SEC) published a Notice of Proposed Plan of Distribution and Opportunity for Comment concerning a Fair Fund created from a $200 million civil penalty imposed on Barclays PLC and Barclays Bank PLC. The proposed plan seeks to compensate investors who traded in Barclays American Depository Receipts (ADRs) on the New York Stock Exchange (NYSE) and ordinary shares on the London Stock Exchange (LSE) during the relevant period. The proposal, under the Fair Fund provisions of Section 308(a) of the United States Sarbanes-Oxley Act of 2002 (SOX), represents a novel approach as it seeks to extend compensation to investors who purchased securities of a foreign issuer on a foreign exchange. This proposal has raised legal and policy concerns, as outlined by Commissioner Hester M. Peirce, who has questioned its consistency with statutory limitations and its broader implications for the US SEC’s mission. The US SEC’s...

The United States Securities and Exchange Commission (US SEC) has announced a series of leadership changes, coinciding with the transition to President Donald J. Trump’s administration. These include the departures of senior officials and the appointment of an Acting Chairman, ensuring the agency adapts to the administration's goals. On January 17, 2025, Amanda Fischer announced her departure as Chief of Staff, a role she had held since January 2023. Fischer initially joined the US SEC in June 2021 as Senior Counselor to former Chair Gary Gensler. Her tenure was marked by key contributions to equity and Treasury market reforms, as well as the agency’s collaboration with the Financial Stability Oversight Council. Fischer also emphasized transparency, integrity, and safeguarding working families’ savings. Former Chair Gary Gensler praised Fischer for her strategic leadership and her role in guiding consequential reforms, stating: "Fischer’s career prior to the US SEC included roles as...

On 17 January 2025, the United States Securities and Exchange Commission (US SEC) published an order instituting administrative and cease-and-desist proceedings, pursuant to Sections 15(b) and 21c of the United States Securities Exchange Act of 1934 and Section 203(e) of the United States Investment Advisers Act of 1940, making findings, and imposing remedial sanctions and a cease-and-desist order thereby sanctioning LPL Financial LLC, a leading broker-dealer and investment adviser, for extensive anti-money laundering (AML) violations. The US SEC found that the firm had failed to adhere to regulatory obligations designed to prevent financial crime and safeguard market integrity. LPL Financial agreed to pay a civil penalty of $18 million and implement significant remedial measures to address its compliance shortcomings. The US SEC’s investigation revealed that, between May 2019 and December 2023, LPL Financial had repeatedly failed to enforce its own AML policies. The firm did not...

On 16 January 2025, the United States Securities and Exchange Commission (US SEC) announced the departure of YJ Fischer, Director of the Office of International Affairs (OIA). YJ Fischer, who has led the OIA since August 2021, will leave her position on 20 January 2025. YJ Fischer brought two decades of experience in complex international negotiations to the US SEC, including roles in both public and private sectors. During the Obama administration, she served at the US State Department, leading initiatives such as salvaging critical infrastructure in Iraq, participating in UN-led negotiations on the Syrian conflict, and contributing to the implementation of the Iran nuclear agreement. In the private sector, Fischer worked on global policy at YouTube, facilitated market entry for start-ups, and secured multimillion-dollar government R&D investments. Before joining the US SEC, YJ Fischer practised law at Kirkland & Ellis, earning recognition for her pro bono work. Her academic...

On 16 January 2025, the United States Securities and Exchange Commission (US SEC) announced order instituting administrative and cease-and-desist proceedings, pursuant to section 21c of the United States Securities Exchange Act of 1934 and sections 203(e) and 203(k) of the United States Investment Advisers Act of 1940, making findings, and imposing remedial sanctions and a cease and-desist order and settled charges against Two Sigma Investments LP and Two Sigma Advisers LP (collectively, Two Sigma) for breaching fiduciary duties and failing to address known vulnerabilities in their investment models. The firms also faced charges for violating whistleblower protection rules. As part of the settlement, Two Sigma agreed to pay $90 million in civil penalties and voluntarily reimbursed $165 million to impacted funds and accounts. The US SEC’s findings revealed that from March 2019 to October 2023, Two Sigma was aware of material vulnerabilities in its algorithmic investment models but...