September 4, 2013 –
More disclosure requirements ahead, bitcoins here to stay … Securities Edge August 2013 wrap-up

Here is your recap of important topics we covered last month in The Securities Edge. Did you miss them? Sign up now to receive future blog posts by email as soon as each is published.

Auditing directives keep coming

Public Company Accounting Oversight Board proposal piling on more costs for public companies (again)

The proposed auditing standards sound like a lofty goal, except that the information they would require auditors provide is: (1) self-evident; (2) an infringement on the judgment of the issuer’s audit committee; or (3) just plain not helpful.   Read more >>

Acts of God no excuse

Hurricanes, flash freezes and other disasters – plan and disclose accordingly or you may be hearing from the SEC

While there is no express requirement to include this type of risk assessment in public filings by public companies, I would not be surprised if the SEC issues comment letters in the near future asking for it.   Read more >>

Victory for SEC in civil fraud litigation

Bitcoins as securities? Tough times for virtual currencies in the real world

It’s impossible to determine how this case will end up, but the court’s determinations that bitcoins are money and that bitcoin investments are securities will likely have significant ramifications in other investigations and actions involving virtual currency players.   Read more >>

Investment advice far from uniform

Uniform fiduciary standard for broker-dealers and investment advisers? Proceed with caution!

Investment advisers and broker-dealers need clear guidance allowing them to serve clients confident they are complying with regulatory requirements. For example, an investment adviser may be prohibited, under the fiduciary standard, from buying a mutual fund for a client that would garner a higher fee or commission. However, a broker-dealer may purchase it, as long as the investment is ‘suitable’ for the client, possibly incentivizing broker-dealers to sell their own products ahead of other, lower-cost, competing products.   Read more >>

Now that you can advertise …

Avoiding 5 potential traps in “new” Rule 506 offerings

Now that the SEC has adopted final rules to remove the ban on general solicitation and advertising in Rule 506 offerings, there are several potential pitfalls to avoid.     Read more >>

Join us September 11-12 in Atlanta

The Southeastern Chapter of the Society of Corporate Secretaries & Governance Professionals has announced its annual meeting and conference will be held Wednesday, September 11 and Thursday, September 12. Events include a dinner at Empire State South, and conference topics including:

• Interview with Meredith Cross of WilmerHale and Director of Corporation Finance of the SEC (2009-13)
• Conversation with PCAOB member Lewis Ferguson about recent rule proposals
• Disclosure and governance trends – a discussion addressing issues such as the status of the Dodd-Frank governance provisions, hedging and pledging developments, global governance trends that are beginning to leak into the U.S. and recent trends in SEC comment letters

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