Financial Compliance

SEC Charges C-Hear, Inc. and Former CEO with Fraud

The SEC charged C-Hear, Inc. and its former CEO, Adena Harmon, with securities fraud in connection with a $4.2 million stock offering. The complaint alleges misleading statements about the company's technology and concealment of Harmon's criminal convictions, as well as misappropriation of investor funds.

California DFPI Enforcement Actions Summary - January 2026

The California Department of Financial Protection and Innovation (DFPI) issued a summary of enforcement and non-enforcement actions taken in January 2026. These actions include citations, desist and refrain orders, consent orders, and accusations related to violations of financial laws, including mortgage lending and securities regulations.

ESMA Supervisory Briefing on AAR Representativeness Obligation

The European Securities and Markets Authority (ESMA) has published a supervisory briefing clarifying expectations for counterparties regarding the active account requirement (AAR) representativeness obligation. The briefing provides guidance on identifying relevant subcategories, reporting trades, and includes an example of compliance.

SEC v. Cutter Financial Group, LLC and Jeffrey Cutter - Investment Adviser Fiduciary Duty Breaches

The SEC announced a final judgment against investment adviser Jeffrey Cutter and Cutter Financial Group, LLC for breaches of fiduciary duties. The judgment orders civil penalties totaling $150,000 and requires client notification and injunctions against future violations.

SEC charges North Texas brothers in real estate fraud

The SEC has charged two brothers and their companies in North Texas for allegedly conducting a real estate offering fraud, raising over $12 million through misrepresentations. The SEC seeks permanent injunctions, disgorgement, and civil penalties.

SEC Obtains Default Judgment Against Bluesky Eagle Capital Management Ltd

The SEC has obtained a final default judgment against Bluesky Eagle Capital Management Ltd. for making misrepresentations in its Form ADV filing. The judgment includes a permanent injunction and a civil penalty of $1,182,254.

ESMA Consultation on MAR Guidelines for Inside Information Disclosure Delay

The European Securities and Markets Authority (ESMA) is consulting on proposed amendments to its Market Abuse Regulation (MAR) guidelines concerning the delay of inside information disclosure. The changes aim to align with the Listing Act, reduce administrative burdens for issuers, and clarify requirements. Stakeholders are invited to provide feedback by April 29, 2026.

ESMA Fines Regis-TR €1.37M for EMIR/SFTR Breaches

The European Securities and Markets Authority (ESMA) has fined Regis-TR €1.37 million for seven breaches of EMIR and SFTR regulations. This is ESMA's first enforcement action for SFTR breaches and the highest fine imposed on a trade repository, requiring Regis-TR to cease ongoing infringements.

ESMA Publishes Sovereign Bond Deferrals List

The European Securities and Markets Authority (ESMA) has published a list of supplementary deferrals for sovereign bonds under MiFIR, effective May 4, 2026. These deferrals allow for the omission of trade volume publication for medium-sized trades on liquid bonds until the end of the trading day.

Canadian Securities Regulators Amend Benchmark Assurance Report Rules

Canadian securities regulators have adopted final amendments to rules governing designated benchmarks and benchmark administrators, effective May 5, 2026. These changes clarify assurance report requirements for independent public accountants, specifying the level of assurance, report type, and submission timing, and introduce a new requirement for certain designated benchmarks.