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Let's talk antitrust: Discussing recent cases and emerging competition issues
Recent cases and judgments have shone a light on some emerging themes and trends that companies will want to consider as part of their risk management framework.
United States | Publication | May 11, 2020
The two-year Treasury yield hit a record low last week. Unattractive interest rates and a volatile stock market will cause investors to look for larger returns without involvement in the stock market. History teaches us that this combination leaves investors vulnerable to the lure of a Ponzi scheme.
Registered representatives, too, will be looking for alternatives for their customers that can give them the returns that more traditional investments currently cannot provide. Some representatives may also need more cash themselves, as both investors and those in the industry may be feeling the "pinch" from the current economic turmoil. Increased selling away activity is likely to follow.
And finally, with both registered representatives and back offices working remotely, supervision may be more challenging than ever.
Firms would be well-served to review their field supervision operations (and make an internal record of having done so), and might consider the following additional measures:
Send a Field Supervision Alert reminding registered representatives of the following:
Send an investor education reminder to customers that:
A robust supervisory structure with written documentation is a firm's best defense to a selling away claim. A few alerts and written updates now may pay big dividends in the future if a defrauded investor seeks to hold the firm liable for the unauthorized activities of its registered representative.
Video
Recent cases and judgments have shone a light on some emerging themes and trends that companies will want to consider as part of their risk management framework.
Publication
After a lacklustre finish to 2022 when compared to the vintage year for M&A that was 2021, dealmakers expected 2023 to see the market continue to cool in most sectors, in response to the economic headwinds of rising inflation (with its corresponding impact on financing costs), declining market valuations, tightening regulatory scrutiny and increasing geopolitical tensions.
Publication
On 18 September 2023, the CMA published its Initial Report (Initial Report) on AI Foundation Models (FM), supplemented in April 2024 with the publication of its “Update Paper” focused on potential antitrust risks associated with FMs and a “Technical Update Report” providing more detail on the development on FMs (collectively the “Reports”). Below, we consider these CMA publications.
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