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Edited by Yelena Maltser « ymaltser@sglawyers.com
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SUPREME COURT REJECTS NEWMAN REQUIREMENT OF “PECUNIARY OR SIMILARLY VALUABLE” PERSONAL BENEFIT FOR INSIDER TRADING LIABILITY FOR ‘TIPPING FAMILY AND FRIENDS
BY SAMUEL J. LIEBERMAN
The U.S. Supreme Court gave the government a major victory in Salman v. U.S.,. which lowers the standard for proving insider trading involving tipping family or friends, and will embolden the government to bring similar cases. Sa/man holds that a gift of inside information to a family or friend is sufficient to prove insider trading tip- ping liability—even If the tipper did not receive a valuable guid pro quo in exchange for the tip. This significantly narrows U.S. v. Newman, in which
Salman will almost certainly embolden the SEC and federal prosecutors to bring more insider trading cases, because it is
much easier for the government to prove a “gift” to a “friend” than to prove a “pecuniary” or similar quid pro quo.
the Second Circuit (a lower appellate court) held that a tipper must receive “at least a potential gain of a pecuniary or similarly valuable nature,”
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Status of the New DOL Fiduciary Rule
BY DANIEL G. VIOLA Reprinted with permission of Hedgeweek
The Department of Labor's (the “DOL’) new fiduciary ruling (the “Rule”) has created strife in the securities industry and has the potential to significantly impact how financial advisers and brokers will manage retirement accounts in the future.
Currently, brokers, financial advisers, and other finance professionals do not legally have to act
in a client’s best interest, with few exceptions, such as those who are registered as investment advisers with the U.S. Securities and Exchange Commission or in individual states. Those who are not registered, like brokers, just have to prove that the investment is suitable, not necessarily the best option, for their client—no matter that that fund might be more expensive and provide
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a Inside this Issue
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Supreme Court Rejects Newman Requirement of “Pecuniary or Similarly Valuable” Personal Benefit for Insider Trading Liability for Tipping Family and Friends
Status of the New DOL Fiduciary Rule
A Cautionary Tale in the Use of Non- Compete Agreements
The Question On All Of Our Minds: What Impact Will the Trump Administration Have on the Hedge Fund Industry?
Compliance Deadlines — Second Quarter 2017
SEC & FINRA Release 2017 Exam Priorities
Gregory Hartmann Joins Sadis & Goldberg's Corporate and Financial Services Practices
Recent and Upcoming Events
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