FINRA recently sanctioned a broker-dealer (the “Firm”) for failure to deliver prospectuses in connection with its sale of ETFs. FINRA also found that the Firm failed to implement a supervisory system reasonably designed to...more
In This Issue:
- Regulation
..SEC Chair’s Agenda Provides Glimpse of New Rules to Come
..The Results Are In: Investors Favor Additional Regulatory Protection
..SEC Declines to Approve Non-Transparent...more
The SEC has brought the first action under the “pay-to-play” rule adopted under the Investment Advisers Act. Andrew Ceresney, director of the SEC Enforcement Division, served notice that the SEC “will hold investment advisers...more
In This Issue:
- Regulation
..SEC Begins to Scrutinize Registrants’ Cybersecurity Practices
..SEC Staff Sets Boundaries for Adviser Testimonials in Social Media
..Chair White: SEC to Tackle High-Frequency...more
6/16/2014
/ Broker-Dealer ,
Cybersecurity ,
Dark Pool ,
Financial Industry Regulatory Authority (FINRA) ,
High Frequency Trading ,
Investment Adviser ,
JOBS Act ,
Legislative Agendas ,
Marijuana ,
New Legislation ,
Private Equity Funds ,
SEC Commissioner ,
Securities and Exchange Commission (SEC) ,
SIFIs ,
Transaction Fees
On January 31, 2014, the SEC issued a ground-breaking no-action letter, taking the position that a financial intermediary that limits its business activity to advising privately held companies in M&A transactions need not...more
FINRA did not wait for any dust (or snow) to settle on the New Year before alerting the brokerage industry and the public about its regulatory and examination priorities for 2014. This year’s letter, issued earlier than ever...more
1/6/2014
/ Algorithmic Trading ,
Anti-Money Laundering ,
Broker-Dealer ,
Compliance ,
Conflicts of Interest ,
Crowdfunding ,
Employer Liability Issues ,
Enforcement ,
Financial Industry Regulatory Authority (FINRA) ,
High Frequency Trading ,
Qualified Benefit Plans ,
Recidivism
In This Issue:
Regulatory Updates -
SEC Continues to Look at a Uniform Fiduciary Standard for Broker-Dealers and Investment Advisers; SEC Grants Unusual Exemptive Relief from Pay-to-Play “Time-Out” Provision;...more
Last week, the SEC’s Investment Advisory Committee recommended that the SEC enact rules to impose a fiduciary duty on broker-dealers when they provide personalized investment advice to retail investors. The Committee’s draft...more
Both the SEC and FINRA believe that the question of whether a uniform fiduciary standard should be imposed on broker-dealers and investment advisers needs to be resolved. The problem is, neither one seems to have a view...more
- Regulatory Updates:
CFTC Adopts “Substituted Compliance” Approach for Registered Investment Companies that are Commodity Pools; SEC’s Final Rules on General Solicitation and Bad Actor Disqualification for Investment...more
10/24/2013
/ Audits ,
Bad Actors ,
Broker-Dealer ,
CFTC ,
Commodity Pool ,
Compliance ,
Continuity of Enterprises ,
Dodd-Frank ,
Enforcement ,
Financial Industry Regulatory Authority (FINRA) ,
General Solicitation ,
Investment Adviser ,
JOBS Act ,
PCAOB ,
Private Funds ,
Rule 506 Offerings ,
Securities and Exchange Commission (SEC)
The Securities and Exchange Commission sanctioned an investment adviser and its owner for failing to seek best execution and breaching their fiduciary duty in selecting mutual fund share classes for three advisory...more
The SEC recently reminded non-U.S. broker-dealers and advisers with clients that relocate to the United States that they may be required to register under the U.S. securities laws. On July 31, 2013, the SEC sanctioned a...more
In a recent formal disciplinary proceeding, FINRA reaffirmed member firms’ obligations to maintain adequate procedures for conducting due diligence on private placements, including the review of sales materials, and systems...more
FINRA is once again focusing on member firms’ communications with the public. Regulatory Notice 13-23 provides members with guidance regarding disclosure of fees in communications about retail brokerage accounts and...more
In This Issue:
Regulatory Updates -
SEC Proposes Money Market Reform; SEC Eases Ban on General Solicitation and General Advertising in Certain Private Placements; SEC and CFTC Adopt Joint Rules to Address...more
7/19/2013
/ Broker-Dealer ,
CFTC ,
Disclosure Requirements ,
FSOC ,
General Solicitation ,
Identity Theft ,
Insider Trading ,
Investment Funds ,
JOBS Act ,
Marketing ,
Money Laundering ,
Money Market Funds ,
New Legislation ,
New Regulations ,
Nonbank Firms ,
NYSE ,
Private Placements ,
Securities and Exchange Commission (SEC) ,
Social Media ,
Tax Reform ,
Whistleblowers
A recent FINRA disciplinary action sends a strong message to broker-dealers that the development of their compliance systems — particularly with respect to email review and retention — must keep pace with the growth of their...more
In This Issue:
Regulatory Updates -
SEC Allows Limited Use of Social Media for Public Disclosure; Federal Reserve Board Publishes a Final Rule Specifying when Nonbank Firms are “Predominantly Engaged in...more
5/17/2013
/ Broker-Dealer ,
Custody Rule ,
ETFs ,
Federal Reserve ,
Final Rules ,
Investment Management ,
Nonbank Firms ,
Pensions ,
Public Disclosure ,
Securities and Exchange Commission (SEC) ,
Social Media ,
Startups
More than two years after an SEC Staff study recommended adoption of a uniform fiduciary standard for broker-dealers and investment advisers, the SEC has taken its first significant step towards possible implementation of the...more
In an attempt to “increase transparency, strengthen compliance, and inform the public and the financial services industry about key risks,” the SEC’s Office of Compliance Inspections and Examinations (OCIE) published its 2013...more
2/25/2013
/ Broker-Dealer ,
Conflicts of Interest ,
Corporate Governance ,
Enterprise Risks ,
Fund Distribution ,
Investment Adviser ,
NEP ,
OCIE ,
Revenue Sharing ,
Risk Management ,
Securities and Exchange Commission (SEC)
In its annual summary of regulatory and examination priorities, the Financial Industry Regulatory Authority (FINRA) signaled that it will aggressively pursue market misconduct. The January 11, 2013 report follows closely on...more