Global Mindset. Local Instinct.

Capital Markets & Securities Regulation

U.S. SEC Warns of Investment Risks Involving Variable Interest Entity Structure

September 22, 2021 The U.S. Securities and Exchange Commission (SEC) issued an alert to investors this week warning about potential risks in investing in U.S.-listed companies that have contracts with but no control over operating entities in China.  This arrangement is commonly known as a variable interest entity (VIE) structure under which the U.S.-listed company’s wholly owned subsidiary in China…

3 Cryptocurrency Risks You need to Know About

Recently, we have seen an explosion in the number of different digital tokens/cryptocurrency/personal digital money.  Investor interest is at an all-time high in what some call digital currency and others, including the SEC, call securities. Let’s take a look at some of the legal and economic risks for sellers, promoters, and the trading platforms. Is it a security? The SEC…

Free Webinar Hosted by YK Law LLP: All You Need to Know about SEC’s New Fundraising Rules

Join YK Law on March 11 for a free webinar as we review and discuss SEC’s New Fundraising Rules. The SEC’s final rule published in November 2020 “Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets” is one of the most significant pieces of SEC rulemaking for private companies in the last twenty years. To understand…

5 Things You Need to Know about SEC’s New Fundraising Rules

On November 2, 2020, the SEC published a final rule called “Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets.” I refer to this as the rule or rulemaking. This rule is one of the most significant pieces of SEC rulemaking for private companies in the last twenty years.  The reason is that it…

To Delist or Not to Delist? NYSE Backtracks on Delisting of Chinese Telecom Companies

As the world welcomes 2021, the New York Stock Exchange (NYSE) announced its plan to delist three state-owned Chinese telecommunication companies from the exchange to comply with the Trump administration’s executive order barring U.S. investments in Chinese firms determined to be owned or controlled by the military. The United States Department of Defense had previously listed the three companies –…

Major Index Providers Drop Securities of Chinese Firms from Benchmarks

Early this month, S&P Dow Jones Indices decided to drop securities from 21 Chinese companies, including Hangzhou Hikvision Digital Technology Co. (“Hikvision”), Semiconductor Manufacturing International Corp. (“SMIC”) and CRRC Corp. (“CRRC”), from its benchmark indices. This action comes after a Trump administration executive order that limits U.S. investment in the securities of certain Chinese companies. Securities of 10 Chinese companies…

How to Invest in Startups Before IPO

If you’ve heard that investing in startups before their initial public offering (IPO) can be lucrative, you’ve heard correctly. This article explains how even investors with only $100 can invest in start-ups since the JOBS Act was passed in 2012. How Do You Invest in Pre-IPO Shares? Prior to 2012,  pre-IPO investing was only available to accredited investors, private equity…

U.S. Blockchain Law 101: Tokenization

The Tokenization of Real Estate This article was written by Alexandra “Sasha” Levin, Esq. and was originally published in the FIBREE annual report. Ms. Levin is a Partner, Co-Head of Emerging Growth & Technology Practice and Israel Practice, and Head of Real Estate Practice. She can be reached at (212) 837-2600 x1003 or [email protected]. While tokenization of real estate may…

Recommendation from Trump Administration May Result in the Delisting of U.S.-listed China-Based Companies from U.S. Exchanges

On August 6, 2020, the President’s Working Group on Financial Markets (“PWG”) released its report in response to President Trump’s June 4 Memorandum on Protecting United States Investors from Significant Risks from Chinese Companies. The PWG report made five recommendations that are intended to address “certain risks to investors in U.S. financial markets posted by the Chinese government’s failure to…

Legal And Regulatory Experts Weigh In On The SEC’s Proposed Changes To The Accredited Investor Status

On 15th January, the Securities And Exchange Commission’s (SEC) discussion paper concerning amending the “Accredited Investor” definition hit the federal register, starting a 60 day consultation period with the public. The proposed changes signal the latest step in a general direction that the U.S. has been heading towards facilitating better access to capital for startups through the easing of restrictions…