Federal Securities Law Source is published by Porter Wright’s Corporate and Securities Practice Group. The blog is devoted to highlighting current issues in securities laws, discussing the ramifications of those issues for today’s businesses and providing bottom-line takeaways for busy owners, managers and executives. We designed this blog so readers can quickly and easily learn about developments affecting investors, issuers, securities markets and governing organizations.

Recent Blog Posts

  • Take charge of compliance: Ensure your business meets Federal Corporate Transparency Act reporting requirements By Porter Wright    In 2021, Congress passed the Corporate Transparency Act (CTA) which will require many companies to report information about the company and its beneficial owner(s) to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Regulations implementing the CTA became effective Jan. 1, 2024. Attorney Jack Beeler explains the new regulations and what businesses need to do now in order to comply in this Porter Wright Law Alert.... More
  • Deadline approaching for public companies to adopt Dodd-Frank clawback policies By Greg Daugherty and Rich Helmreich    This summer, the Securities and Exchange Commission (SEC) approved final Dodd-Frank clawback policy listing requirements for both the NYSE (NYSE Listed Company Manual Section 303A.14) and Nasdaq (Nasdaq Listing Rule 5608). The listing standards provide that these compensation recovery policies apply to compensation received on or after Oct. 2, 2023, but listed companies have until Dec. 1, 2023, to adopt compliant policies. We summarize the key requirements of the policies below and recommend actions for publicly... More
  • House votes to expand access to accredited investor status By Porter Wright    Legislation aimed at increasing access to investment opportunities for all individuals regardless of their income or wealth level passed the House recently on May 31, 2023. H.R. 2797, or, the Equal Opportunity for All Investors Act of 2023, shares the name of a similar bill that never made it past the House after its introduction in 2021. H.R. 2797 was referred to the Senate Committee on Banking, Housing, and Urban Affairs on June 1, 2023. The Securities and... More
  • Increasing commentary on the importance of ESG disclosure By Porter Wright    On April 14, 2021, the U.S. Senate confirmed Gary Gensler, President Joe Biden’s nominee, to chair the U.S. Securities and Exchange Commission (SEC) until June 5, 2021. The Financial Industry Regulatory Authority (FINRA) issued a statement, in which the organization characterized Mr. Gensler as an advocate “for the interests of investors.” Investors and the SEC have expressed an interest in the reporting of environmental and social issues. Many spectators believe that under Gensler’s leadership, the SEC may implement... More
  • Federal Corporate Transparency Act requires companies to disclose beneficial owner By Porter Wright    Most companies established or registered to do business in the U.S. do not have to disclose or report their ownership information—but that is about to change. The recently-enacted Corporate Transparency Act, which went into effect Jan. 1, 2021, requires certain companies to report their beneficial owner(s) to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). My colleagues Jack Beeler and Diana Jia explain the new law, how it applies to businesses and what happens if they don’t... More
  • Paycheck Protection Program loan necessity questionnaire By Bob Tannous    Borrowers of Paycheck Protection Program (PPP) loans – together with their affiliates – who have loans in excess of $2 million and seek loan forgiveness will potentially need to complete necessity questionnaires according to the Small Business Administration. There are separate forms for for-profit and non-profit businesses and will likely affect 52,000 borrowers. My colleagues Jack Beeler, Cat Rice and Jack Meadows explain the purpose and questions asked in these questionnaires in this law alert.... More
  • SEC proposes exemptions from registration for finders By Ryan Steele and Porter Wright    On Oct. 7, 2020, the Securities and Exchange Commission (SEC) proposed a limited and conditional exemption from broker registration for natural persons, referred to as “finders,” who seek to help non-reporting, private companies raise capital from accredited investors in exempt offerings, subject to certain conditions. Generally, persons who effect transactions in securities for the account of others cannot do so through interstate commerce unless the person is registered with the SEC. There has long been... More
  • SEC amends definition of accredited investor By Ryan Steele and Porter Wright    On Aug. 26, 2020, the Securities and Exchange Commission (SEC) adopted amendments to Rule 501(a), Rule 215 and Rule 144A of the Securities Act of 1933 (Securities Act). These amendments are part of the SEC’s efforts to more effectively identify qualified investors and allow for expanded investment opportunities, while still maintaining appropriate levels of investor protections. Likely the most impactful of these amendments was the update to the definition of “accredited investor” under Rule 501(a). The... More
  • Delaware Supreme Court upheld federal forum provisions regarding Securities Act claims By Diana Lingyu Jia    Forum-selection provisions are common tools for corporations seeking to counteract potentially abusive shareholder litigation. Last month, the Supreme Court of Delaware held that Federal forum provisions, which require actions arising under the Federal Securities Act of 1933, as amended, to be filed in a Federal court, could survive a facial challenge. In Sciabacucchi v. Salzberg, Plaintiff Matthew Sciabacucchi purchased shares of common stock from Roku Inc., Stitch Fix, Inc. and Blue Apron Holdings, Inc., either in the... More
  • The CARES Act: Changes to the U.S. Bankruptcy Code By Bob Tannous    On March 27, 2020, President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. Among other things, the CARES Act made some important changes to the U.S. Bankruptcy Code.  My colleague Jack Meadows explains on our Banking & Finance blog.... More