Top 5 SEC Enforcement Developments For May 2023

In order to provide an overview for busy in-house counsel and compliance professionals, we summarize below some of the most important SEC enforcement developments from the past month, with links to primary resources. This month we examine:

• A new SEC rule requiring certain buyback disclosures;
• The SEC's first-ever Liquidity Rule action against an investment adviser;
• The first-ever approval for the custody of digital asset securities;
• A settled action against an investment adviser for failing to disclose conflicts of interest; and
• A settlement in SEC v. First Guaranty Bancshares, a buyback disclosure case.

1. SEC Introduces New Rules on Buyback Disclosures

On May 3, 2023, the SEC approved new rules that require public companies to provide more information about share repurchases. The rule mandates that companies disclose their daily repurchase activity on a quarterly basis, report the number of shares repurchased on a given day and at what average