Edward Canter
Subscribe to all posts by Edward Canter
Last week, the U.S. Attorney’s Office for the Eastern District of Virginia moved to dismiss public corruption charges against former Virginia Governor Robert McDonnell, and his wife, Maureen McDonnell. The decision comes after the U.S. Supreme Court unanimously vacated the former Governor’s corruption conviction earlier this summer. McDonnell v. United States, 579 U. S. ____ … Continue Reading
On August 25, 2016, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, proposed a rule that would require all banks, regardless of whether they are subject to regulation by a “Federal functional regulator,” to establish and implement written AML programs, conduct ongoing customer due diligence, and identify and … Continue Reading
Last week, in an opinion authored by Judge Richard Posner, the U.S. Court of Appeals for the Seventh Circuit rejected a proposed class-action settlement arising from Walgreen Co.’s acquisition of the Swiss-based pharmacy company, Alliance Boots GmbH. In re Walgreen Co. Stockholder Litigation, No. 15-3799 (7th Circ. Aug. 10, 2016). Judge Posner’s sharply-worded opinion endorsed … Continue Reading
Last month, the SEC announced that it had adopted amendments updating the rules of practice governing its in-house administrative proceedings. On August 9, 2016, Compliance Week published an article on the recently-adopted amendments, entitled, SEC modifies administrative proceedings, but did it go far enough? The article features insights from Proskauer partner Joshua Newville, who discusses … Continue Reading
The Department of Justice yesterday upped the ante in its efforts to encourage companies to self-report potential Foreign Corrupt Practices Act (“FCPA”) violations when it unveiled a one-year pilot program that includes carrots for companies who take the self-reporting route and sticks for those that don’t. This announcement follows the Department’s recent emphasis on prosecuting individuals … Continue Reading
Last week, in the consolidated cases of Charles Hill, Jr. v. SEC (No. 15-12831) and Gray Financial Group, Inc. v. SEC (No. 15-13738), the U.S. Court of Appeals for Eleventh Circuit heard oral argument on the question of whether federal district courts have jurisdiction to review constitutional challenges to SEC administrative enforcement proceedings. The Eleventh … Continue Reading
As we wrote about here, in April the Department of Labor issued its highly anticipated, re-proposed regulation addressing the standard of care for broker-dealers and other financial professionals who provide retirement investment advice. Since its release, the proposed rule has come under fire from critics who maintain that the DOL proposal, while well intentioned, will ultimately … Continue Reading
Earlier this month, the Securities Industry and Financial Markets Association (“SIFMA”) released its “Proposed Best Interests of the Customer Standard for Broker-Dealers” – an alternative to the U.S. Department of Labor’s (“DOL”) proposed regulation addressing the standard of care for broker-dealers and other financial professionals who provide retirement investment advice. Unlike the DOL’s proposed rule, … Continue Reading
Last week, Richard Ketchum, Chairman and CEO of the Financial Industry Regulatory Authority (“FINRA”), doubled-down on his recent criticism of the U.S. Department of Labor’s (“DOL”) proposed regulation addressing the standard of care for broker-dealers providing retirement investment advice. Speaking at FINRA’s annual conference, Chairman Ketchum said that, while he supports a “best interests of … Continue Reading
On May 1, 2015, Richard Ketchum, Chairman and CEO of the Financial Industry Regulatory Authority (“FINRA”), reaffirmed his support for a uniform fiduciary standard for broker-dealers. Testifying before the House Financial Services Committee, Chairman Ketchum emphasized that the U.S. Securities and Exchange Commission (the “SEC”) – and not the U.S. Department of Labor (the “DOL”) … Continue Reading
On March 25, 2015, U.S. Representative Jim Himes introduced the Insider Trading Prohibition Act. The bill is the latest in a series of efforts to define insider trading following the Second Circuit’s decision last year in United States v. Newman. We have blogged previously about similar legislation introduced by U.S. Senators Jack Reed and Bob … Continue Reading
On March 25, 2015, the SEC proposed an amendment to Rule 15b9-1 that would require high-frequency trading firms to register with FINRA. According to the SEC, the proposed amendment will better align the scope of Rule 15b9-1 with today’s market structure. Rule 15b9-1, as presently written, exempts certain market participants from the requirement under the … Continue Reading
In the latest regulatory action addressing high frequency and other algorithmic trading, a recent FINRA Regulatory Notice seeks comment on a proposed rule change under which persons associated with a member firm would be required to register as Equity Traders under Rule 1032(f) if they are primarily responsible for the design, development or significant modification … Continue Reading
Ever since the U.S. Court of Appeals for the Second Circuit issued its landmark decision in United States v. Newman, debate has raged about whether the court has sanctioned insider trading or has appropriately restrained the Government’s efforts to prosecute innocent market conduct – and whether the judiciary, rather than Congress, should be defining and … Continue Reading
The Delaware Supreme Court will address the standard for pleading that an independent director has breached fiduciary duties in connection with a controlling shareholder buyout. The issue was certified for interlocutory appeal in a pair of recent Delaware Chancery Court cases. In re Cornerstone Therapeutics Stockholder Litigation, No. CIV.A. 8922-VCG (Del. Ch. Sept. 10, 2014) … Continue Reading
On February 3, 2015, the Financial Industry Regulatory Authority (“FINRA”) issued its Report on Cybersecurity Practices. Reinforcing FINRA’s emphasis on protecting investor information, the report discusses the results of a recent industry-wide cybersecurity examination and presents a list of principles and best practices to guide the industry’s cybersecurity efforts going forward. 2014 Cybersecurity Examination Last year, FINRA … Continue Reading
Yesterday, U.S. District Judge Andrew L. Carter, Jr. rejected the argument by the U.S. Attorney’s Office for the Southern District of New York to limit the Second Circuit’s decision in United States v. Newman to classical insider-trading cases. Judge Carter’s order, vacating four insider-trading guilty pleas in United States v. Conradt, represents another setback for U.S. Attorney Preet … Continue Reading
Over the last five years, the U.S. Attorney for the Southern District of New York, Preet Bharara, has aggressively pursued insider-trading cases against a broad spectrum of defendants. As a result, insider trading remains a topic of public interest—especially in the compliance community. On December 23, 2014, Compliance Week published an article on the Second … Continue Reading
Bringing quantitative analyses to the debate over high-frequency trading, two working papers recently made available by the SEC’s Division of Economic and Risk Analysis present economic models suggesting that there are market benefits from certain forms of high-frequency and low-latency trading. In light of the on-going interest in high-frequency trading among various regulators, the recognition of … Continue Reading
On December 10, 2014, the Second Circuit reversed insider trading convictions of two former hedge fund managers, holding that, to sustain a conviction for insider trading, the government must prove a tippee who trades on the basis of material non-public information had knowledge that the tipper not only disclosed confidential inside information, but also that … Continue Reading
DOJ Moves to Dismiss Public Corruption Charges Against Former VA Governor
By Edward Canter and Sigal Mandelker on Posted in White Collar
FinCEN Proposal Looks to Extend AML Requirements to Non-Federally Regulated Banks
By Chantel L Febus and Edward Canter on Posted in Financial Services
Seventh Circuit Adopts Trulia Standard for Disclosure-Only Settlements
By Edward Canter and Tanya Dmitronow on Posted in Class Settlement, Securities Law, Securities Litigation
Joshua Newville Discusses Amendments to Rules Governing SEC Administrative Proceedings with Compliance Week
By Edward Canter and Tanya Dmitronow on Posted in SEC Enforcement, Securities Litigation, Securities Regulatory, White Collar
Justice Department Launches New FCPA Pilot Program
By Edward Canter and Sigal Mandelker on Posted in White Collar
Eleventh Circuit Considers Challenge to SEC Administrative Proceedings
By Edward Canter and Tanya Dmitronow on Posted in SEC Enforcement, Securities Litigation
DOL Open to Changing Fiduciary Proposal, But Some Press for it to be Scrapped
By David Picon and Edward Canter on Posted in Financial Services
The Battle Lines Continue to Form Over the DOL’s Fiduciary Proposal
By David Picon and Edward Canter on Posted in Financial Services, Securities Regulatory
FINRA CEO Criticizes DOL Fiduciary Proposal (Again)
By David Picon, Edward Canter, Harry Frischer and Philip Arnold on Posted in Financial Services, Securities Regulatory
FINRA Chairman: SEC Should Lead on Uniform Fiduciary Standard
By David Picon and Edward Canter on Posted in Financial Services, Securities Regulatory
Third Congressional Proposal to Define Insider Trading
By Edward Canter, Jonathan Richman and Tanya Dmitronow on Posted in Securities Law, Securities Litigation
SEC Rule Change Would Require High-Frequency Traders to Register with FINRA
By Edward Canter and Harry Frischer on Posted in Financial Services, Securities Law, Securities Regulatory
Proposed FINRA Rule Would Require Associated Persons Who Develop Algorithmic Trading Strategies To Register as Equity Traders
By Edward Canter and Harry Frischer on Posted in Financial Services, Securities Law, Securities Regulatory
After Newman, Congress Seeks to Define Insider Trading
By Edward Canter, Jonathan Richman and Tanya Dmitronow on Posted in Securities Law, White Collar
Delaware Independent Director Liability in Control Buyout Cases
By Edward Canter, Richard Spinogatti and Sarah Gold on Posted in Securities Litigation
FINRA Cybersecurity Report Highlights Risks, Best Practices
By David Picon and Edward Canter on Posted in Corporate Governance, Financial Services
Personal Benefit Required Under Misappropriation Theory of Insider Trading
By Edward Canter, Jonathan Richman and Richard Spinogatti on Posted in Securities Law, White Collar
Compliance Week: Insider-Trading Gets More Complicated
By Edward Canter and Harry Frischer on Posted in Securities Law, White Collar
SEC Working Papers Suggest Market Benefits From Certain Types of High-Frequency and Low-Latency Trading
By Brian Friedman, Edward Canter, Harry Frischer and Stephen Ratner on Posted in Financial Services, Securities Regulatory
Reversing Convictions, Second Circuit Clarifies Scope of Tippee’s Required Knowledge in Insider Trading Cases
By Edward Canter and Richard Spinogatti on Posted in Securities Law, White Collar
