If you are a regular reader of this blog, you know that one of my pet peeves with FINRA is its unrelenting zeal to bar people, permanently, from the securities industry. Seemingly without much regard for the actual conduct at...more
Forced to sit at home under government-ordered decree, and having finished binge-watching Season 3 of Ozark and Season 4 of Money Heist on Netflix, what’s left to do except prey upon scared investors – particularly seniors –...more
A couple of years ago, I complained... about FINRA’s Office of Disciplinary Affairs, or ODA. I am here to report that…nothing has changed.
Let me explain. I am defending a FINRA Enforcement case that is scheduled to go to...more
My young boys will sometimes chase me around the house, catch me, and yell “gotcha” as they drag me off to their pretend jail. No matter how much I plead that I’ve done nothing wrong, I always end up in jail, despite having...more
12/19/2019
/ Broker-Dealer ,
Conflicts of Interest ,
Disclosure Requirements ,
Failure To Disclose ,
Investment Adviser ,
Investment Management ,
Investors ,
Lack of Interpretive Guidance ,
Regulation Best Interest ,
Regulation BI ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Securities Transactions
This post is about Reg BI, but if you really want to learn about it, as opposed simply to listening to me gripe, I urge you to register for the webcast that my partners Heidi VonderHeide and Rob Betman will present on...more
As I have mentioned before, several times, PIABA is deathly concerned with the fact that sometimes customers who prevail in arbitrations are unable to collect their awards, which typically happens when the respondent firm...more
Anyone who has sat through a talk by financial regulators is undoubtedly familiar with the refrain from the individuals that they do not speak for the Commission and that the opinions offered are their own. Even with that...more
9/30/2019
/ Broker-Dealer ,
CFTC ,
Cryptocurrency ,
Cybersecurity ,
Enforcement ,
Financial Regulatory Agencies ,
Popular ,
Regulation Best Interest ,
Regulatory Oversight ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Self-Reporting ,
Transparency
Nearly ten years ago, FINRA decided to update its old suitability rule, NASD Rule 2310. It had been around a long time, and while it seemed to work fine, FINRA decided to incorporate into the new amended rule – FINRA Rule...more
6/26/2019
/ Best Interest Standard ,
Books & Records ,
Broker-Dealer ,
Dismissals ,
Fiduciary Duty ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
New Rules ,
Regulation Best Interest ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
Standard of Conduct ,
Statement of Claim ,
Suitability Rule
While I feel I have enjoyed as much success defending respondents in FINRA Enforcement matters as anyone, I am still careful to caution clients who are unwilling to consider any settlement that going toe-to-toe with FINRA at...more
Most of the time, the cases I write about were some other lawyer’s. In some respects, it’s easier to offer comments when it isn’t my case. I can, hopefully, be more objective, less pissed off (when the result is one I...more
5/2/2019
/ Administrative Law Judge (ALJ) ,
Anti-Fraud Provisions ,
Audits ,
Conflicts of Interest ,
Disclosure Requirements ,
Form ADV ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Negligence ,
Securities and Exchange Commission (SEC) ,
Settlement Agreements
I am hardly saying that SEC Regulation S-P is the sexiest of regulations. I mean, has any customer is history actually read one of those exciting statement stuffers that discloses in some dense font a BD’s privacy policy?...more
4/24/2019
/ Broker-Dealer ,
Civil Monetary Penalty ,
Customer Information ,
Cybersecurity ,
Data Privacy ,
Data Protection ,
Data Security ,
Encryption ,
Enforcement Actions ,
Incident Response Plans ,
Investment Adviser ,
Notice Requirements ,
OCIE ,
Opt-Outs ,
Personally Identifiable Information ,
Policies and Procedures ,
Popular ,
Privacy Policy ,
Regulation S-P ,
Regulatory Requirements ,
Risk Alert ,
Risk Assessment ,
Securities and Exchange Commission (SEC)
I have been busy the last month getting ready for a big arbitration, and attending the first week of what looks like is going to be a four- or five-week slog when all is said and done. So, I am just catching up on some recent...more
4/17/2019
/ Broker-Dealer ,
Civil Monetary Penalty ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Internal Investigations ,
Market Manipulation ,
Penny Stocks ,
Policies and Procedures ,
Professional Misconduct ,
Registered Representatives ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Securities Transactions ,
Securities Violations
About a year ago, the SEC offered investment advisors the unique opportunity to report themselves to the SEC if they sold mutual funds to their clients that offered a lower priced share class than the class actually selected...more
1/31/2019
/ 529 Plans ,
Broker-Dealer ,
Conflicts of Interest ,
Deadlines ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
Mutual Funds ,
Securities and Exchange Commission (SEC) ,
Self-Disclosure Requirements ,
Self-Reporting ,
Settlement Negotiations ,
Share Class Selection Disclosure Initiative (SCSD) ,
Share Classes