United States: Compliance

Nossaman LLP's Compliance Notes newsletter delivers essential updates on regulatory developments, legal requirements, and compliance strategies affecting businesses across multiple industries.

When an AI system is trained on material nonpublic information, MNPI, and then used to inform or execute trades, the firm deploying that system may face insider trading liability, even if no human trader ever directly reviewed the underlying data. The SEC has not yet brought a case on this precise theory, but recent enforcement actions, particularly its 2023 settlement with Virtu Financial, establish the compliance framework most likely to govern AI-driven trading. The legal risk is no longer hypothetical.

Federal banking agencies have issued revised model risk management guidance in SR 26-2, introducing a more explicitly risk-based approach to model governance, validation, and monitoring.

Drawing on lessons from thousands of incident responses, this comprehensive guide examines the most common and consequential mistakes organizations make when responding to data breaches.

The SEC has voted unanimously to propose rescinding the climate-related disclosure rules adopted in March 2024, which never took effect due to immediate legal challenges and a subsequent stay. Chairman Paul Atkins emphasized that disclosure obligations should be guided by materiality and imposed only when benefits justify costs, marking a significant shift in the Commission's approach to climate-related reporting requirements.

The Supreme Court's unanimous decision resolves a significant question regarding the SEC's disgorgement authority, foreclosing defendants from contesting disgorgement awards based on the absence of investor financial harm.

State attorneys general are increasingly taking center stage in antitrust enforcement across the United States, creating a more complex and decentralized regulatory environment for businesses. Understanding how this shift impacts investigations, litigation strategies, and compliance risk management has become essential for companies navigating today's antitrust landscape.

Federal banking regulators have jointly updated interagency supervisory documents to remove all references to reputational risk, marking a significant shift in how banks will be examined and supervised.

President Trump's new executive order establishes a voluntary framework for AI developers to share advanced frontier models with federal agencies for cybersecurity assessment...