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 …
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 …
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 …
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 …
Duties of Care and Loyalty Coming to Investments Near You
6/28/19
By: Matthew Jones
The approval of Regulation Best Interest by the Securities and Exchange Commission last month continues to spark debate and controversy, and the future of the Rule remains uncertain. The Rule’s implementation was set for June 30, 2020. …
6/17/19
By: Joseph Suarez
On June 5, 2019, the U.S. Securities and Exchange Commission (“SEC”) approved its Best Interest Rule (the “Rule”) package requiring broker-dealers, and investment advisors, to act in their retail clients’ “best interests.” The SEC states the Rule, …
Protecting Seniors From Investment Exploitation – One Year Later
6/3/19
By: Ryan Baggs
One year after the passage of the Senior Safe Act (the “Act”) the SEC, FINRA, and NASAA continue to emphasize the importance of “covered financial institutions” (“CFIs” or “CFI”) providing adequate training to all relevant employees for …
5/15/19
By: John H. Goselin II
Beginning in August 2016, the ERISA Plaintiffs’ Bar launched a concerted attack on more than 20 major universities across the country filing class action lawsuits for alleged violations of ERISA fiduciary duties under ERISA Section …
4/22/19
By: Jennifer Lee
On April 16, 2019, the U.S. Securities and Exchange Commission (“SEC”) issued a Risk Alert summarizing the findings from the examinations of broker-dealers and investment advisers’ privacy practices and compliance with Regulation S-P.
Regulation S-P, 17 C.F.R. …
Plaintiffs’ Burden to Establish Punitive Damages: Farmers & Merchants Trust Co. v. Vanetik
4/18/19
By: Jennifer Weatherup
A recent decision from the California Court of Appeal has outlined the requirements for establishing a defendant’s financial condition as a prerequisite to an award of punitive damages, and has further emphasized that it is the plaintiff’s …
FINRA Seeks To Simplify Non-Party Discovery
4/9/19
By: Greg Fayard
In January 2019, the Financial Industry Regulatory Authority (FINRA) proposed changes to its rules to give non-parties more time to respond to discovery requests and witness orders from arbitration panels. Currently, non-parties only have 10 calendar days …
3/28/19
By: Jennifer Lee
The Securities and Exchange Commission will be hosting a public forum on distributed ledger technology and digital assets in Washington DC on May 31, 2019. This is a part of the SEC’s increasing efforts to regulate cryptocurrency …