Latest FINRA Rules to Regulate Expungement Actions
2/19/19
By: Margot Parker
FINRA recently announced its approval of enhanced training and guidance for arbitrators hearing expungement requests, an issue under increasing scrutiny as over 90% of such actions are currently granted. The proposal is now under review by the …
Tesla Going Private? Hold the Charge
8/31/18
By: Matt Jones
Elon Musk recently tweeted his plan to take Tesla private at $420/share. He even went so far to say “Funding secured.” Such a tweet was of course met with a mix of emotions and responses. Once that …
8/27/18
By:Ted Peters
The Securities and Exchange Commission, created through the Securities Exchange Act of 1934, is without a doubt one of the most powerful regulatory agencies in the free world. According to its website, the SEC’s mission is …
Supreme Court to Revisit Liability Under Rule 10b-5 – Will Prospective Justice Kavanaugh Weigh In?
7/25/18
By: Ted Peters
Section 10(b) of the Securities Exchange Act, and Rule 10b-5 promulgated under it, makes certain conduct in connection with the purchase or sale of any security unlawful. Specifically, Rule 10b-5(a) prohibits the use of any “device, scheme, …
Loss of SEC Commissioners Piwowar and Stein May Wreak Havoc on SEC’s Proposed Fiduciary Regulations
6/1/18
By: Ted Peters
On May 7, 2018, Republican SEC Commissioner Michael Piwowar announced that he will resign effective July 7, 2018. Piwowar’s five-year term expires on June 5, but SEC commissioners are permitted to remain in office for up to …
“Senior Safe Act” Encourages Reporting of Senior Investor Fraud
5/25/18
By: Ted Peters
On May 22, 2018, the Senior Safe Act, authored by U.S. Senators Susan Collins (R-ME) and Claire McCaskill (D-MO), passed in the House of Representatives as part of a bipartisan banking reform package after previously being …
Lessons Learned from the SEC’s Order in the Yahoo! Data Breach Enforcement Action
5/22/18
By: Jennifer Lee
On April 24, 2018, the SEC issued an order in the enforcement action against Altaba Inc., formerly Yahoo! Inc., and imposed a $35 million fine relating to the 2014 data breach which affected more than 500 million …
DOL Fiduciary Rule Suffers a Slow Death
5/15/18
By: Ted Peters
In 2016, the U.S. Department of Labor (“DOL”) promulgated a set of rules and regulations now infamously referred to as the “Fiduciary Rule.” After multiple criticism and legal challenges, the Fifth Circuit Court of Appeal struck down …
FINRA Increases Penalties For Brokers’ Bad Behavior
5/8/18
By: Ted Peters
In further response to mounting pressure for securities regulators to exert greater control over problem brokers, the Financial Industry Regulatory Authority (“FINRA”) released Regulatory Notice 18-17 on May 2, 2018. FINRA has long maintained a “rulebook” of …
New FINRA Proposals for High Risk Brokers
5/4/18
By: Theodore C. Peters
On April 30, 2018, FINRA published Regulatory Notice 18-16, captioned “High-Risk Brokers,” which seeks comment on proposed rule amendments that would place further restrictions on not only high-risk brokers, but also the member firms that …
DOJ Fails to Challenge 5th Circuit Ruling Striking Fiduciary Rule
5/3/18
By: Theodore C. Peters
On March 15, 2018, the Fifth Circuit Court of Appeal stuck down the “fiduciary rule” proposed by the Department of Labor (DOL), which required brokers to act in the best interests of their clients in retirement …
Yahoo Fined $35M for Delay in Disclosing 2014 Cyberattack
4/30/18
By: Theodore C. Peters
On April 24, 2018, the U.S. Securities and Exchange Commission hit Altaba, Inc. (formerly known as Yahoo) with a $35 million fine. The penalty stems from Yahoo’s failure to disclose a 2014 cyberattack until 2016, even …