“It’s very much on the regulatory agenda and the enforcement agenda because there are so many opportunities for abuse in the whole process,” he said.
Gensler confirmed scrutiny top wall street Pc#
Galloway, shareholder and co-chairman, securities litigation and enforcement, at Winstead PC in Fort Worth, Texas. Regulators will not wait for a catastrophe involving SPACs to happen before taking meaningful action, said Toby M. The SEC has already opened an inquiry into SPACS, seeking information from securities underwriters on how they are managing the risks involved. Last week, Paul Munter, the SEC’s acting chief accountant, said market participants should carefully consider whether a SPAC’s target company “has a clear, comprehensive plan to be prepared to be a public company.” The agency has also released a statement on issues that should be considered before a private operating company undertakes a business combination with a SPAC. The structures allow businesses to become listed without going through a traditional initial public offering.Īccording to SPACInsider, a website that tracks SPACs, there have been 298 SPAC IPO transactions this year as of Friday, compared with 248 for all of 2020. The so-called “blank check companies” are shell companies formed for the purpose of raising capital to acquire existing businesses and usually have two years to make an acquisition. SPACs are certain to be a major focus of the SEC, experts say. The confirmation vote for President Biden’s nominee for SEC chairman, Gary Gensler, is slated for next week. Lee said in the statement that the restoration “will enable investigative staff to act more swiftly to detect and stop ongoing frauds, preserve assets and protect vulnerable investors.” The authorization was put in place by the Obama administration but was rescinded during the Trump Administration. Ohren, counsel with Baker & McKenzie LLP in Chicago and chair of its North America litigation and government enforcement group’s insurance practice. 9 statement that restored the power of senior officers in the agency’s enforcement division to approve formal orders of investigation likely portends a more robust and active agency, said Ronald L. Gillon said.Īcting SEC chair Allison Herren Lee’s Feb. “There’ll be a renewed effort to go after the wrongdoers,” Mr. Gillon, partner, insurance recovery & advisory, for Pillsbury Winthrop Shaw Pittman LLP in Washington.īut the SEC run by a Biden appointee likely won’t simply be a return to the Obama years, he said, noting that the agency under President Obama was criticized for not aggressively pursuing individuals. Substantially fewer enforcement actions were brought by the SEC during the Trump administration compared with the eight years of the Obama administration, with a smaller number of prosecutions for insider trading and other issues, said Peter M. “There’s a lot of pent-up energy among the staff to bring actions after the last few years,” he said. technology disputes, litigation and arbitration for Freshfields Bruckhaus Deringer LLP in Menlo Park, California. “The SEC has been unusually quiet for the last four years,” said Boris Feldman, a partner and head of U.S. If borne out, the rise in regulatory actions for listed companies and others that fall within the SEC’s regulatory scope will contrast with the agency’s work under the Trump administration, they say. Securities and Exchange Commission during the Biden administration, with special purpose acquisition companies, or SPACS, certain to be one area of focus, experts say. Companies should expect more aggressive regulatory and investigative activity from the U.S.
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