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Broker-Dealer Sanctions

Mayer Brown Free Writings + Perspectives

FINRA Sanctions Broker-Dealer for Failure to Supervise Recommendations of Structured Notes

A broker-dealer failed to reasonably supervise its registered representatives when making recommendations of certain variable rate structured products (“VRSPs”), including fixed to floating rate steepeners and other variable...more

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

Bracewell LLP

Personal Devices and Messaging Platforms in the Workplace: Tips, Tactics and Best Practices for In-House Counsel

Bracewell LLP on

Federal regulators have cracked down on the use of texts messages and messaging platforms for business communications, using their broad authority to root out record retention violations, resulting in significant fines and...more

Katten Muchin Rosenman LLP

Six Takeaways From FINRA's Revised Sanction Guidelines

The Financial Industry Regulatory Authority (FINRA) Sanction Guidelines have been significantly revised, now giving FINRA discretion to impose considerably higher fines on mid- and large-size firms. The revisions, published...more

UB Greensfelder LLP

Highlights From SIFMA’s Compliance And Legal Seminar 2022

UB Greensfelder LLP on

I attended the four-day SIFMA Compliance and Legal seminar last week, and there were a bunch of interesting soundbites from regulators that folks might find interesting. The challenge at these conferences is always...more

Goodwin

SEC Publishes Sample Climate Change Comment Letter

Goodwin on

In This Issue. The U.S. Securities and Exchange Commission (SEC) published a sample comment letter on climate change disclosures; the Financial Industry Regulatory Authority (FINRA) is conducting a review of brokerage firm...more

Balch & Bingham LLP

SEC Issues Cybersecurity Sanctions Against Eight Firms

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Background - On August 30, 2021, the Securities and Exchange Commission (SEC) sanctioned eight firms in three actions for cybersecurity failures in their policies and procedures that exposed the personal information of...more

Goodwin

SEC Makes Cybersecurity Top Priority; Sanctions Firms for Cybersecurity Failures

Goodwin on

There is little doubt that the U.S. Securities and Exchange Commission is making cybersecurity a top priority. SEC Chair Gary Gensler told a Senate committee on Tuesday, September 14, 2021 that the agency is developing a...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

UB Greensfelder LLP

FINRA AWC Provides New Defense To Allegation Of “Willfulness”

UB Greensfelder LLP on

I dare you. In fact, I double-dog dare you to figure out how or why FINRA decides to charge willfulness in some cases but not in others. Bottom line is that it is nearly impossible (except if you’re a big firm, in which case...more

UB Greensfelder LLP

For FINRA, Restitution Is The Solution

UB Greensfelder LLP on

Seems like just days ago I blogged about Jessica Hopper and her commitment to providing restitution to customers. Since I posted that blog, there were two other settlements (which I added to that blog as updates) in which...more

UB Greensfelder LLP

SunTrust Settlement Proves That Jessica Hopper, FINRA’s Head Of Enforcement, Would Be A Good Umpire

UB Greensfelder LLP on

I may have said this before in another post, but in my opinion, whether a baseball umpire is good or bad is not a matter of whether he has a low strikezone, a high strikezone, or a wide one. What matters is that whatever that...more

Katten Muchin Rosenman LLP

Bridging The Week - March 2020

A proprietary trading firm was sanctioned by a sixth futures-industry regulator for purported spoofing trades by one of three employees many years ago. For the employees’ aggregate alleged misconduct, the firm was first...more

Holland & Knight LLP

New California Legislation for Trust and Estate Attorneys to Watch in 2020

Holland & Knight LLP on

California Gov. Gavin Newsom recently signed into law a number of bills that will affect Trust and Estate attorneys, and which are effective as of Jan. 1, 2020. In addition, three new laws make changes to civil discovery...more

UB Greensfelder LLP

When It Comes To Sanctions, What Does “Relevant Disciplinary History” Mean To FINRA, And Does It Vary Depending On The Size Of The...

UB Greensfelder LLP on

The day after Christmas, FINRA issued a press release announcing that five big firms – Citigroup, J.P. Morgan Chase, LPL, Morgan Stanley and Merrill Lynch – had each entered into a settlement, collectively agreeing to pay a...more

Epstein Becker & Green

SEC Sanctions Broker-Dealer and Its CEO for Failing to Supervise an Employee Who Committed Securities Fraud

Epstein Becker & Green on

On August 20, 2019, the Securities and Exchange Commission (“SEC”) charged Mosaic Capital, LLC, formerly known as AOC Securities, LLC (“AOC”), and its CEO with failing to adequately supervise an employee who engaged in...more

Faegre Drinker Biddle & Reath LLP

Waive or Pay: FINRA Reaches Final Settlements in Its Mutual Fund Waiver Initiative

Justice Brandeis once famously said that sunlight is the best disinfectant. Perhaps, but in FINRA’s purview, settlements might be better. Along these lines, FINRA recently announced that it has reached final settlements in...more

UB Greensfelder LLP

A Glaring Example Of FINRA Dragging Its Feet, Culminating In A Pointless Default Decision

UB Greensfelder LLP on

FINRA loves to tout its supposed intent to bring meaningful cases, cases that matter to the investing public, rather than enforcing “foot faults,” as it has been accused of doing over the years. My own experience with FINRA...more

UB Greensfelder LLP

FINRA AWC Includes Waiver Of A Fine: Is This A Sign Of Good Things To Come?

UB Greensfelder LLP on

Way back in 2006, NASD issued Notice to Members 06-55, which tweaked the Sanction Guidelines to allow not just the size of the firm to be taken into consideration when determining the appropriate sanctions to be meted out,...more

Ballard Spahr LLP

SEC Sanctions Broker-Dealer, Clearing Firm and Chief Compliance Officer for AML Violations

Ballard Spahr LLP on

On May 16, 2018, the Securities Exchange Commission (“SEC”) announced it had settled charges against a registered broker-dealer, its clearing firm, and its chief compliance and anti-money laundering (“AML”) officer brought...more

Eversheds Sutherland (US) LLP

Senior Investors Are the Focus of New “Principal Consideration” in FINRA Sanctions

On April 10, 2017, the Financial Industry Regulatory Authority’s (FINRA) National Adjudicatory Council (NAC) introduced new Sanction Guidelines (Guidelines) which allow the NAC and FINRA staff to take into consideration the...more

Broker-Dealer Compliance + Regulation

FINRA Revises Its Sanction Guidelines

In April 2017, FINRA announced that it had revised its sanction guidelines for violations of its rules. The new revisions, among other things...more

Katten Muchin Rosenman LLP

Bridging the Week - February 2017

Making Regulation Great Again: President Trump Requires Loss of Two Regulations for Every New One and Orders Review of All Financial Services Laws and Rules: Last week, through the issuance of two executive orders, President...more

BakerHostetler

Spoofing, Sports and the Panama Papers: BakerHostetler Offers Mid-Year Review of Cross-Border Government Investigations and...

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Halfway through 2016, the international community has seen a staggering variety of cross-border investigations and enforcement actions. Brexit, the release of the Panama Papers, allegations of widespread sports doping and the...more

Carlton Fields

SEC Sanctions Unregistered EB-5 Investments Broker

Carlton Fields on

We previously warned that some individuals involved with arranging EB-5 investments may be required to register as broker-dealers (see "Immigrant Investor Program Raises SEC Broker Registration Issues" in the Summer 2014...more

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