Chief Legal Architect and a co-founder of Caffrey.AI
Steven Lofchie is the Chief Legal Architect and a co-founder of Caffrey.AI, an AI platform built for law firms, banks, and the financial regulatory industry. He is also a partner at Norton Rose Fulbright, where he advises financial institutions on securities laws, the Commodity Exchange Act, and broker-dealer regulation. Ranked by Chambers USA every year since 2007, he is the author of “Lofchie’s Guide to Broker-Dealer Regulation,” long considered the leading treatise on the subject.
Recent Articles & Comments
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Section 17(a)(3) of the Securities Act provides, in pertinent part, that: "It shall be unlawful for any person in the offer or sale of any securities . . . by the use of any means . . . to engage in any transaction. . . . "
Thus Ms. Peirce raises an important question: to what extent (if at all) should the regulators stretch their interpretation of their authority to reach conduct that may be inappropriate, but is arguably not within the scope of their authority? As the Commissioner…
Commissioner Crenshaw should be applauded for pushing the regulators to conduct testing of their regulatory theories, both before adopting and after implementation. It is all to the good that the SEC and other financial regulators (i) slow down the pace of reaction to market events, such as GameStop, to allow time for consideration, and (ii) generally conduct more testing both before adopting rules and again after implementing them to test their effectiveness.
Testing, however, will…
While the SEC's warning is directed towards investors, broker-dealers may take this as a warning to institute procedures to monitor sales of Bitcoin-focused funds to retail customers.