Environmental, Social, and Governance (“ESG”) Retirement Investing is a form of socially conscious investing where fiduciaries in a retirement plan review non-financial factors when analyzing investment decisions. (CFA Institute). Though the letters “ESG” may appear novel in the retirement context, “socially conscious” retirement investing is decades old. As early as the 1970s, public pension funds made socially conscious decisions within pension portfolios by divesting from “sin” stocks, like companies affiliated with smoking and gambling. (Jean-Pierre Aubry et. al, Center for Retirement Research). Millennials, the largest segment of the workforce in U.S. history, are now driving interest in ESG investing, putting trillions of dollars at stake for asset managers. (Chris Versage & Mark Abssy, Nasdaq). Workforce retirement plans are most of a non-retiree’s investment savings. (Economic Well-Being of U.S. Households, Federal Reserve). Therefore, because millennials are the largest segment of the work force, millennials increased attention in ESG to retirement investing…
Read MoreIn October of this year, the U.S. Securities and Exchange Commission (“SEC”) fined Kim Kardashian $1.26 million for touting a cryptocurrency on her Instagram account. (Clara Hudson, Bloomberg). Ms. Kardashian posted an advertisement for EthereumMax, a crypto asset security, and failed to disclose that she was paid $250,000 for the post. Id. The SEC also recently adopted significant changes to the Investment Advisers Act of 1940 (“Advisers Act”) to improve the regulation of financial securities advertising. (Ellen Kaye Fleishhacker et al., Arnold & Porter). The SEC replaced the outdated framework with the “Marketing Rule” to expand the definition of advertising, increase current disclosure requirements, and provide investment advisers with more flexibility. (Michael S. Caccese et al., K&L Gates). The Kim Kardashian case and the Marketing Rule highlight the SEC’s priority of public disclosure while acknowledging investment advisers’ need for flexibility and access to online marketing channels…
Read MoreAfter almost fifty years since founding the company in 1973, Patagonia founder and majority owner, Yvon Chouinard, and his family have donated all of the voting stock and transferred all of non-voting stock of the company in the effort to mitigate climate change and protect the environment. (Martine Paris, Bloomberg Law). In this unconventional business decision, Chouinard divested control over Patagonia to a trust and all future profits to an environmental nonprofit. (Tima Bansal, Forbes). While Chouinard considered selling the company or taking it public, he decided that transferring ownership of Patagonia, valued at about $3 billion, was the only way to both preserve nature and his company’s values….
Read MoreOn September 16, 2022, following President Joe Biden’s Executive Order earlier this year, the White House released its first-ever comprehensive framework for regulating cryptocurrency (the “Framework”). (The White House). After six months of collaboration between agencies across the government, including the Securities and Exchange Commission (“SEC”) and U.S. Department of the Treasury (“USDT”), among others, the agencies developed a framework to advance several priorities relating to: 1) protecting consumers, investors, and businesses; 2) enhancing financial stability; 3) counteracting illicit finance; and 4) advancing responsible innovation…
Read MoreIn December 2020, the Securities and Exchange Commission (“SEC”) filed a complaint in the United States District Court for the Southern District of New York against Ripple Labs, Inc. (“Ripple”), one of the crypto asset industry’s most prominent companies. (Securities and Exchange Commission, Complaint). The complaint alleged Ripple’s XRP token was an investment contract, and therefore a security which required registration under Section 5 of the Securities Act of 1933 (“Securities Act”). (Securities and Exchange Commission, Complaint; Jeff Roberts, Decrypt). Regardless of the victor, this litigation will set precedent regarding digital asset regulation in the future…
Read MoreGlobalization and the expansion of international trade have created an economy unlike any before. The United States (“U.S.”) has particularly benefitted from foreign trade, with many businesses dependent on it for their success. However, recent events and growing concerns surrounding the sustainability of the global business model have led to executive actions and legislative movements which may foreclose significant portions of the world for U.S. businesses and may have dramatic implications…
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