One of the requirements for any False Claims Act case is that the falsity or fraud must be material. We explain what that term means, and how a whistleblower goes about proving the materiality of a fraud.
What is the
Corporate & Commercial
SEC Division of Corporation Finance Issues Additional Disclosure Guidance Related to COVID-19 Pandemic
On June 23, the Division of Corporation Finance (the Division) of the Securities and Exchange Commission issued CF Disclosure Guidance: Topic No. 9A (Topic 9A) providing additional disclosure considerations for public reporting companies regarding operations, liquidity and capital resources disclosures…
SEC and Antitrust Division of DOJ Sign MOU
On June 22, the Securities and Exchange Commission and the Department of Justice’s Antitrust Division announced a Memorandum of Understanding (MOU) that is intended to foster collaboration between the agencies with respect to the enhancement of competition in the securities…
SEC Chairman Speaks on Modernizing US Equity Market Structure
On June 22, Securities and Exchange Commission Chairman Jay Clayton and Brett Redfearn, the Director of the SEC’s Division of Trading and Markets, spoke together on an SEC-sponsored virtual forum about modernizing the US Equity Market Structure. Chairman Clayton identified…
SEC Approves Changes to FINRA’s Suitability and Non-Cash Compensation Rules
On June 19, the Financial Industry Regulatory Authority (FINRA) issued a regulatory notice that it had amended its Capital Acquisition Broker (CAB) suitability rule and rules governing non-cash compensation to align with the Securities and Exchange Commission’s Regulation Best Interest…
Prudential Regulators Revise Initial Margin Rules for Uncleared Swaps
On June 25, the five prudential regulators responsible for the margin rules for bank swap dealers (the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC),…
NFA Sets Effective Date for Rule Amendments Related to NFA’s Penalties and Disciplinary Procedures
On June 22, National Futures Association (NFA) issued Notice I-20-26 announcing that the recent amendments made to Part 3 of its Compliance Rules will become effective on August 31, 2020. NFA Compliance Rule 3-14 was amended to allow an NFA…
CFTC Approves Two Final Rules and Two Proposed Rules at June 25 Open Meeting
On June 25, the Commodity Futures Trading Commission held an open meeting where it approved two final rules, advanced two proposed rules and withdrew a previously proposed rule and supplemental proposal.…
FDIC Publishes Final Rule Regarding the “Valid When Made” Doctrine
On June 25, the Federal Deposit Insurance Corporation (FIDC) published its final rule with respect to whether a loan made by a state-chartered bank is “valid when made” pursuant to the preemptive authority in Section 27 of the Federal Deposit…
Volcker Rule Regulators Make Changes to Covered Fund Rules
On June 25, the five regulators responsible for Section 13 of the Bank Holding Company Act of 1956 (Volcker Rule) approved a set of amendments that modify and clarify the covered fund provisions of the regulations implementing the Volcker Rule.…