Automated digital investment advisory programs, often referred to as “robo-advisers”, have grown in popularity over the last decade since their initial introduction in 2008. (SEC; Investopedia). As a digital financial adviser, a robo-adviser manages investments with minimal human intervention. (Milan Ganatra, Aashika Jain, Forbes). Robo-advisers provide automated investment portfolios based on the investor’s imputed preferences, risks, and goals by using advanced algorithms that analyze investor information. (Id.; Charles Schwab). While this technology is a considerable advancement and is accurate most of the time, it is not without its drawbacks and risks…
Read MoreOn March 21, 2022, the U.S. Securities and Exchange Commission (“SEC”), proposed a new climate reporting rule to provide investors with more climate-related data to make informed investments. (SEC). The announcement of this proposal has been met with serious reservations by industry lobbyists and Republican politicians who view the regulation as outside of the SEC’s authority. Id. Notably, General Motors (“GM”) strongly objected to the proposal and sent their CEO to meet with members of the SEC. (SEC). While many organizations have voiced their criticisms of the proposal, whether the SEC will take heed of these objections has yet to be seen…
Read MoreOn May 3, 2022, the Securities and Exchange Commission (“SEC”) announced that it will add twenty positions to the newly renamed Crypto Assets and Cyber Unit within its Division of Enforcement. (Securities and Exchange Commission). This unit’s previous name was simply the “Cyber Unit,” but this new renaming indicates the SEC’s increased focus on crypto assets. Id. Since the SEC created this unit in 2017, it has brought more than 80 enforcement actions related to fraudulent and unregistered crypto asset offerings and has levied more than $2 billion dollars in fees, fines, and penalties…
Read MoreThe GameStop short squeeze and trading halt in early 2021 fueled debates around Wall Street hedge funds and retail trading. One of the areas that drew the most attention was the practice of payment for order flow (“PFOF”), which is a popular form of compensation received by the retail trading brokers such as Robinhood. (Alex Rampell and Scott Kupor, Andreessen Horowitz). Shortly after the trading frenzy, the Securities and Exchange Commission (the “SEC”) released a 44-page report on how the short squeeze and trading halt went down, and raised several red flags on retail broker practices in the report. (Yun Li, CNBC). Since then, the SEC’s chair, Gary Gensler, has directed efforts to research and propose a set of rules aiming to make the US retail securities market more transparent and fair…
Read MoreIn light of recent events and social media exposing continued racial inequalities in the United States, social justice has become a topic at the forefront of discourse. Calls for change and acknowledgment of social justice issues have reached further into the corporate sphere with both the U.S. Securities and Exchange Commission (“SEC”) and shareholders alike demanding more accountability and transparency on the impact corporations have on racial inequalities. (U.S. Securities and Exchange Commission). Recently, Apple shareholders, against the Apple CEO’s recommendation, approved proposals for audits on the company’s civil-rights impact, including the company’s diversity, pay equity, and use of concealment clauses in employment agreements. (Gurman, Bloomberg Law). This recent push is one of many instances calling for similar corporate action and accountability across the board. (Maiden, Corporate Secretary). With recent SEC focus on social justice, new regulations and shareholder pressure, social justice is a topic corporations won’t be able to avoid much longer…
Read MoreThe National Football League (“NFL”) implemented the Rooney Rule for hiring head coaches in 2003. (Julie Goldsmith Reiser, Lori Nishiura Mackenzie, Bloomberg Law). The Rooney Rule requires any NFL franchise interviewing candidates for head coaching positions to interview at least one minority candidate or be subject to a $500,000 fine. Id. When the Rooney Rule was first implemented, it appeared to be successful in achieving its goal of increasing the number of diverse head coaches in the NFL. Id. However, statistics now show otherwise…
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