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What once was a relatively simple process of removing outdated or false information on a registered person’s CRD (Central Registration Depository) record has become increasingly complicated (and expensive) over the years.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”. …
New FINRA Rules to Bring Significant Changes to Qualification & Registration Process for Representatives and Principals
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 …
SEC Issues Risk Alert on the Cybersecurity Practices of Registered Broker-Dealers, Investment Advisers, and Investment Funds.
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, …
The DOL Fiduciary Rule is Delayed No More
6/1/17
By: Ze’eva Kushner
Broker-dealers and registered investment advisors take note. The Department of Labor’s much anticipated Fiduciary Rule requiring financial advisors to act in the best interests of their clients in retirement accounts became effective on June 9, 2017. As …
The SEC’s Authority Does Not End at the Border
4/18/17
By: Ze’eva R. Kushner
Companies with significant operations in the United States but offering securities in other countries should beware. After almost seven years of uncertainty, it finally has been determined by one court that the Securities and Exchange Commission’s …
The S.E.C.'s Administrative Star Chamber Deemed Constitutional
10/11/16
By: John H. Goselin and Ze’eva Kushner Banks
If you are a broker-dealer, registered investment advisor or an individual associated with an entity regulated by the Securities and Exchange Commission (“S.E.C.”), the deck may be stacked against you. The Dodd-Frank …