SEC Fiduciary Rules Proceeds on Split Vote
4/19/18
By: Theodore C. Peters
The Securities and Exchange Commission (“SEC”) conducted a public hearing on April 18, 2018 to address a series of SEC proposals governing securities professionals. Recall that the Department of Labor previously sought to promulgate a “fiduciary …
Has Fiduciary Rule Suffered a Fatal Blow?
4/4/18
The Employee Retirement Income Security Act of 1974 (“ERISA”) defined a “fiduciary” as someone who provides investment advice for a fee. The following year, the U.S. Department of Labor (“DOL”) promulgated regulations that provided a five-part …
3/20/18
By: Theodore C. Peters
For years, litigants have battled over whether and to what extent state courts have concurrent jurisdiction over securities class actions brought under the Securities Act of 1933. The 1933 Act was enacted during the Great Depression …
FINRA to Pick Up the Check on Unpaid Arbitration Awards?
3/8/18
By: Theodore C. Peters
As recently reported, unpaid FINRA arbitration awards is a growing problem. As FINRA has acknowledged, roughly one quarter of FINRA arbitration awards issued in 2016 went unpaid. If lawmakers have their way, FINRA itself …
Unpaid FINRA Awards May Result in Tighter Membership Rules Governing Brokers and Member Firms
2/16/18
By: Theodore C. Peters
On February 8, the Financial Industry Regulatory Authority (“FINRA”) released a discussion paper: FINRA Perspectives on Customer Recovery, which openly addressed the reality that roughly one quarter of FINRA arbitration awards issued in 2016 were …
FINRA’s Senior Protection Rules Now Effective
2/7/18
By: Theodore C. Peters
In 2007, FINRA issued Regulatory Notice 07-43, which served as a “reminder” that member firms and registered persons had a heightened obligation to senior investors. At that time, NASD Rule 2310 required that in recommending …
FINRA Seeks to Tighten Rules for Expungement of Customer Dispute Information
1/5/18
By: Theodore C. Peters
What once was a relatively simple process of removing outdated or false information on a registered person’s CRD (Central Registration Depository) record has become increasingly complicated (and expensive) over the years. Bit by bit, securities regulators …
Is Virtual Currency Here To Stay?
11/15/17
By: Matthew S. Jones
With the growing interest in Bitcoin, Ethereum, and Litecoin, it was only a matter of time the U.S. Securities and Exchange Commission (“SEC”) and Internal Revenue Service (“IRS”) weighed in on the legality of such “cryptocurrency”. …
11/10/17
By: Patrick Y. Yoo
In October, 2017, the Securities and Exchange Commission approved a new set of Rules proposed by the Financial Industry Regulatory Authority (FINRA) that will go into effect October 1, 2018. The changes enacted by these Rules …
FINRA Tightens Expungement Requirements
10/12/17
By: Brett C. Safford
On September 25, 2017, the Financial Industry Regulatory Authority (FINRA) issued a “Notice to Arbitrators and Parties on Expanded Expungement Guidance” (hereafter, the “Notice”). The Notice continues the recent pattern of FINRA issuing rules …
Another Delay Is in the Works for the DOL Fiduciary Rule
9/1/17
By: Ze’eva R. Kushner
The landscape of the Department of Labor’s Fiduciary Rule continues to shift and has changed significantly since our last commentary on this topic in June. (DOL Fiduciary Rule is Delayed No More) On June …
8/11/17
By: Jennifer Lee
The U.S. Securities and Exchange Commission (“SEC”) is becoming increasingly focused on cybersecurity issues in recent years as data breaches and ransomware attacks become more frequent and wide-spread across all industries. The most recent Risk Alert, …