4/20/21
By: Kirsten Patzer Even before Robinhood made headlines with the GameStop debacle earlier this year, the Massachusetts Securities Division and Secretary of the Commonwealth, William Galvin, had Robinhood in their sight. On December 16, 2020 the Massachusetts regulators brought their first action under the recently implemented fiduciary rule standard, alleging Robinhood aggressively targeted young people…
SEC and FINRA Release 2021 Examination Priorities
3/15/21
By: Chad Weaver and Tyler Jacobs On March 3rd, the SEC Division of Examinations announced their 2021 examination priorities. Earlier this year, on February 2nd, FINRA released a report of Examinations and Risk Monitoring to provide insight to member firm’s compliance programs. Unsurprisingly, there is significant overlap between the priorities of the two securities regulatory…
Yes, Robinhood can, and should, halt the purchase of GameStop
1/29/21
By: Kirsten Patzer In the wake of GameStop Corp. (GME) stock spiking as high as 800% over the last several weeks, broker dealers are stepping in to stop the madness. The lead up to Robinhood, Interactive Brokers, and other trading platforms halting the purchase of high-flying stocks GameStop, AMC Entertainment Holdings Inc. (AMC), and other…
Statute of Limitations Tolled in California Amid Pandemic
8/3/20
By: Matthew Jones In response to the COVID-19 pandemic, California’s Governor Gavin Newsom issued a “state of emergency” for the entire State. In response, the California Judicial Council adopted several Emergency Rules to implement during the pandemic. In particular, Rule 9 states that all statute of limitations for civil causes of action are tolled from April 6,…
FINRA Amends Rules to Incentivize Timely Payment of Arbitration Awards
6/17/20
By: Kathleen Cusack and Kirsten Patzer On May 21, 2020, the Financial Industry Regulatory Authority (FINRA) announced that effective September 14, 2020, its Membership Application Program (MAP) rules will be amended to further incentivize the timely payment of arbitration awards. The amendment to MAP will seek to do so by preventing an individual from switching firms…
FINRA Issues Guidance on Remote Work Including Continued Warning for Cyber Threats
6/15/20
By: Kathleen Cusack and Kirsten Patzer Although all 50 states have begun the process of reopening, business spaces have not yet returned to full capacity and many people continue to work remotely. On May 28, 2020, the Financial Industry Regulatory Authority (FINRA) issued new guidance for working from home based on surveys of financial firms. …
FINRA In-Person Hearings Further Postponed Until July 31
5/20/20
By: Kathleen Cusack and Kirsten Patzer On Friday, May 15, 2020, amidst continued concern over the potential spread of COVID-19, the Financial Industry Regulatory Authority (FINRA) postponed all in-person arbitration and mediation proceedings until July 31, 2020. FINRA initially postponed in-person meetings beginning in March and extended the suspension several times. In its most recent…
Considerations For CPAs Dealing With Unpaid Fees
4/15/20
By: Nancy Reimer, Nicole Graham, Elizabeth Lowery, Zinnia Khan, and Caroline Wu Many Certified Public Accountants and accounting firms will likely be increasingly confronted with collecting fees as the COVID-19 health crisis continues. In dealing with unpaid fees, a CPA must pay close attention to their professional duties and obligations with respect to the release…
3/30/20
By: Greg Fayard The federal Coronavirus Aid Relief and Economic Security (CARES) Act signed into law March 27, 2020, includes retirement tax relief for victims of the pandemic—namely victims’ 401(k)s and IRAs. Under section 2202 of the $2 Trillion law (which amends the IRS code), victims under 59 and a half may withdraw up to…
Business Continuity Plans in the Age of Coronavirus
3/23/20
By: Jennifer Weatherup As the Coronavirus, or COVID-19, has caused unprecedented disruptions, including a precipitous decline in the stock market, it is increasingly important for broker-dealers to prepare plans which will allow them to fulfill their responsibilities to customers and continue operations under difficult circumstances. More specifically, broker-dealers should ensure that their business continuity plans…
Beware of FINRA's Increased Focus on Non-Registered, Associated Persons
8/9/19
By: Elizabeth Lowery On July 29, 2019, FINRA announced that Citigroup Global Markets, Inc. was fined $1.25 million for failing to conduct timely or adequate background checks on approximately 10,400 non-registered associated persons spanning a seven-year period from 2010 to 2017. This large fine issued even though Citigroup had completed screening and fingerprinting which was…
Next Up Libra: Regulating Cryptocurrency
7/23/19
By: David Molinari Reluctance to accept cryptocurrency as a medium of exchange continues to focus, in substantial part, on the inability to regulate a virtual form of currency. Cryptocurrencies were originally meant to be stateless entities, not beholden to legal frameworks of any state or country. Such intent was/is short-sighted if the goal is to…