Blog

For Better or For Worse: SEC Adopts New Rules Relating to SPACs

For Better or For Worse: SEC Adopts New Rules Relating to SPACs

The United States Securities and Exchange Commission (“SEC”), by a 3-2 vote, recently adopted new rules and amendments pertaining to special purpose acquisition companies (“SPACs”) (“SPAC Rules”)[1] to “enhance disclosures...

Hiding the Ball: The Implications of the Marketing Rule

Hiding the Ball: The Implications of the Marketing Rule

A recent order by the Commission in In the Matter of Wahed Invest, LLC, No. 3-22283 (Nov. 1, 2024) (the “Order”) issued against Wahed Invest LLP (“Wahed”) illustrates the operation of the Marketing Rule. Wahed, a financial services company based in New York, is subject to federal law and regulations, including the Investment Act, since it has been registered with the Commission as an investment adviser since 2015. On November 1, 2024, the Commission published a cease-and-desist order against Wahed for disseminating ads containing endorsements from professional athletes on its website, through emails, and on social media posts that failed to provide the disclosures required under the Marketing Rule.