News & Analysis as of

Broker-Dealer Breach of Duty

Marshall Dennehey

FINRA Grants Respondents’ Motions for Sanctions Against Claimant and Broker’s Request for Expungement

Marshall Dennehey on

Marlin Keith Andrews v. William S. Humber and Stifel, Nicolaus & Co., Inc., FINRA Case #22-01176 - The claimant asserted causes of action including failure to supervise, breach of fiduciary duty, respondeat superior,...more

Patterson Belknap Webb & Tyler LLP

Eight Noteworthy Investment Adviser Enforcement Actions From the First Half of 2023

Presented below is a highlight of eight noteworthy enforcement actions the Securities and Exchange Commission has taken against investment advisers through the second quarter of 2023. Since the beginning of this year, the...more

Marshall Dennehey

Arbitrator Finds No Extraordinary Circumstances Existed That Would Permit the Equitable Tolling of FINRA’s Six-Year Eligibility...

Marshall Dennehey on

In an action filed in 2022 involving allegations of breach of fiduciary duty, negligence and fraud related to certain unspecified securities, an arbitrator granted the respondent broker-dealer’s motion to dismiss pursuant to...more

Marshall Dennehey

Broker-Dealer Found Grossly Negligent for Employees’ Ponzi Scheme Operated Out of Its Offices

Marshall Dennehey on

A group of investors alleged causes of action, including breach of fiduciary duty and respondeat superior, against the broker-dealer for its failure to supervise four of its employees who operated a Ponzi scheme out of the...more

Seward & Kissel LLP

SEC Settles Charges Against Investment Advisers for Alleged Breaches of Fiduciary Duties

Seward & Kissel LLP on

Who may be interested: Registered Investment Advisers, Mutual Funds, Compliance Officers - Quick Take: The SEC settled charges against two affiliated registered investment advisers, alleging that the advisers failed to...more

Pillsbury Winthrop Shaw Pittman LLP

Gensler SEC Expands Scope of Insider Trading Enforcement

Recent enforcement action could signal expanding the boundaries of misappropriation theory, with significant implications for SEC-regulated entities and other market participants. With Chair Gensler at the helm, an...more

Goodwin

Tenth Circuit Upholds District Court’s Ruling Finding No Breach of Fiduciary Duties in Section 36(b) Case

Goodwin on

In This Issue. The federal bank regulators published frequently asked questions concerning the London Interbank Offered Rate transition; the Consumer Financial Protection Bureau (CFPB) confirmed an effective date for two...more

Goodwin

Ninth Circuit Holds Loss Causation May Be Predicated on Information Potentially Available Under Freedom of Information Act

Goodwin on

Ninth Circuit Holds Loss Causation May Be Predicated on Information Potentially Available Under Freedom of Information Act; D.C. Circuit Upholds FINRA’s Permanent Ban of Broker Accused of Misconduct After Finding SCOTUS...more

Goodwin

California State Court Upholds Exclusive Federal Forum-Selection Charter Provision for 1933 Act Suits

Goodwin on

California State Court Upholds Exclusive Federal Forum-Selection Charter Provision for 1933 Act Suits; California District Court Dismisses Fraud-Related Claims Against AT&T; Third Circuit Holds Challenge to SEC’s Decision to...more

Proskauer - The Capital Commitment

SEC Cracks Down on Pension Fund Advisers’ Undisclosed Compensation and Conflicts

In August 2020, the SEC issued two orders against VALIC Financial Advisors Inc. (VFA) related to VFA’s management of 403(b) and 457(b) plans. These matters arise out of two of the SEC’s enforcement initiatives, the Teachers...more

Skadden, Arps, Slate, Meagher & Flom LLP

Investment Management Update - September 2019

In this issue, we summarize regulatory, litigation and industry developments from May to September 2019 impacting the investment management sector, including SEC action on standards of conduct for broker-dealers and...more

Kramer Levin Naftalis & Frankel LLP

SEC Sues Investment Adviser for Nondisclosure of Revenue Sharing Agreement Details

On Aug. 1, the Securities and Exchange Commission (the SEC) charged Commonwealth Equity Services LLC, dba Commonwealth Financial Network (Commonwealth), a registered independent investment adviser to private clients (but not...more

Winstead PC

The Velvet Hammer: Undue Influence Based On Deceit, Fraud, and Relationship Poisoning and a Financial Institution’s Duty To Report...

Winstead PC on

The normal view of undue influence involves an actor threatening an elderly or infirm person into signing a document that he or she otherwise would not sign. One imagines the actor having control over the person and threating...more

Alston & Bird

A New Class Action Theory for Breach of Fiduciary Duty by Brokers Recommending Variable Annuities Is Being Advanced, But Should...

Alston & Bird on

Our Securities Litigation Group explains how the novel theory from the plaintiffs’ bar to bring a breach of fiduciary duty class action could foreshadow an increase in financial firms’ litigation risk....more

Eversheds Sutherland (US) LLP

The far reach of state law – Nevada proposes fiduciary duty regulations for broker-dealers and investment advisers

Under Nevada law, financial planners owe a fiduciary duty to their clients. In accordance with this duty, a financial planner must disclose, at the time advice is given, any gain the financial planner may receive if the...more

Patterson Belknap Webb & Tyler LLP

Third Circuit Enforces Plan Releases Against Later-Purchasing Shareholders Bringing Claims Concerning Post-Confirmation Conduct

Bankruptcy plans often include provisions releasing debtors and their officers and directors from certain potential liability. In Zardinovsky v. Arctic Glacier Income Fund, No. 17-2522 (3d Cir. Aug. 20, 2018), the United...more

Bass, Berry & Sims PLC

Chris Lazarini Comments on Fiduciary Duty in ERISA Plan Management

Bass, Berry & Sims attorney Chris Lazarini commented on a putative ERISA class action case brought against several banks and their affiliates alleging breach of fiduciary duty or for knowing participation in prohibited...more

Vedder Price

Investment Services Regulatory Update - September 2017

Vedder Price on

Market and Product Developments - Securities Industry Implements T+2 Settlement Cycle - On September 5, 2017, the securities industry transitioned to a shorter settlement cycle for most broker-dealer securities...more

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