Financial Regulation

When homeowners fall behind on their mortgage payments, they may face the difficult decision of whether to foreclose or short sell their property. Both options have their own advantages and disadvantages, and the best choice depends on the individual homeowner’s circumstances. Key Facts Foreclosure is an involuntary action initiated by…

Rule 506(b) of Regulation D: An Overview Rule 506(b) of Regulation D (Reg D) is a “safe harbor” exemption that allows issuers to offer and sell securities without registering them with the Securities and Exchange Commission (SEC) [1]. This exemption is commonly used by small businesses and start-ups to raise…

The Communications Assistance for Law Enforcement Act (CALEA) The Communications Assistance for Law Enforcement Act (CALEA), also known as the “Digital Telephony Act,” is a United States wiretapping law passed in 1994. CALEA enhances the ability of law enforcement agencies to conduct lawful interception of communication by requiring that telecommunications…

Compliance in accounting refers to the adherence to laws, regulations, and standards governing a company’s financial reporting. It encompasses clear and transparent processes for recording and verifying all financial transactions, including revenue, expenses, assets, and liabilities. Compliance ensures the accuracy, relevance, security, and accountability of an organization’s financial matters. Key…

Shelf Registration Statement Expiration and Financial Statement Age Requirements Shelf registration statements are used to register securities for future sale. The length of time that a shelf registration statement is effective varies depending on the type of offering and the issuer’s eligibility. Expiration of Shelf Registration Statements Under the Securities…

Oversight of the PCAOB by the SEC The Public Company Accounting Oversight Board (PCAOB) is a non-profit corporation established by Congress to oversee the audits of public companies and SEC-registered brokers and dealers. The SEC has oversight authority over the PCAOB, including the approval of the Board’s rules, standards, and…

FSCS Protection in Peer-to-Peer (P2P) Lending The Financial Services Compensation Scheme (FSCS) is a UK government-backed scheme that provides protection to consumers in the event of a financial institution’s failure. While P2P lending is not covered by the FSCS, there are other protections in place for lenders and investors. Contingency…

The Sarbanes-Oxley Act (SOX), enacted in 2002, is a comprehensive legislation designed to enhance corporate governance, financial reporting, and auditing practices in the United States (IBM, 2023). The act was introduced in response to several high-profile corporate scandals, including Enron and WorldCom, which highlighted the need for stricter regulations to…