In this post, Michael Gross complains — and rightly so — about the lack of any definitive guidance from FINRA regarding the appropriate range of fines to be imposed for AML violations. The bigger issue, however, at least in my view, is not necessarily the lack of guidance, but the fact that the fines FINRA
disciplinary hearings
As Berthel Fisher Just Learned, Those Who Don’t Know FINRA’s History Of Disciplinary Actions Are Doomed To Repeat It
I have often used these posts to lament the fact that FINRA consistently acts as an enforcement driven group of crazed examiners, hell-bent on writing firms up for technical violations, at best, uncaring about the dramatic ramifications of their seemingly ceaseless attack on well-meaning broker-dealers and their owners. While I still harbor those feelings, occasionally…
FINRA Tweaks The Sanction Guidelines Again And – Guess What? – It Wasn’t To Make Them Gentler
Remember a few weeks ago? Remember I blogged about Robert Cook, FINRA’s new CEO? And how he was saying all the right things about FINRA perhaps being juuuuust a bit too Enforcement oriented? I expressed hope – sincere but wary hope – that given his remarks, it was possible that the pendulum might actually start…
Some Amusing OHO Decisions
As a former member of FINRA Enforcement’s Litigation Department and a current practitioner in FINRA regulatory matters, I have read my fair share of decisions from the Office of Hearing Officers (OHO). I recently read the Southeast Investments/Black decision, which was issued in March. There is some good stuff in there – from an entertainment…
When FINRA Can’t Discipline The Firm, Individuals Pay The Price
There has been a lot of discussion over the past few years, including in this blog, about the growing – and troubling – trend for Chief Compliance Officers to be named as respondents in disciplinary actions. While regulators regularly deny that they truly have it out for CCOs, as is often the case, their…
It Can Pay To “Lawyer Up” When Dealing With FINRA
I realize that the title of this blog post may sound self-serving, so I apologize for that up front, as it is not my intent. Still, there is a lesson here to be learned.
I got a phone call yesterday from a reporter asking me to comment on a disciplinary action that FINRA had just…
Article II Appointments Clause Defense To SEC Administrative Actions Gains Momentum In The Courts
Here is Part II of Ken Berg’s analysis of constitutional defenses that have been raised in response to the SEC’s increased use of administrative proceedings. In the interest of full disclosure, note that the Malouf case referenced towards the end is one that Heidi VonderHeide and I are handling. In addition, it also worth mentioning…
Is There A Catch-22 To Fighting FINRA Charges?
Here is a fascinating analysis by my partner, Michael Gross, of FINRA’s twisted logic when it comes to sanctions: your very decision not to admit liability and to put FINRA to its proof can, and will, be held against you when it comes time to determine the appropriate sanctions. Or will it? – Alan
The…
Swing And A Miss: A Rare Form U-4 Loss For FINRA
I have blogged multiple times, as recently as a couple of weeks ago, about the slew of Enforcement actions that FINRA has brought for an RR’s failure to update his or her Form U-4 in a timely manner to disclose a tax lien. My partner, Michael Gross, examines one such case that FINRA managed to…
Statutorily Disqualified? FINRA Says “Deal With It”
It is a nasty thing when one becomes statutorily disqualified. It means either leaving the industry, permanently, or having to file an MC-400 and trying to convince FINRA that you should be permitted to remain in the industry, albeit subject to heightened supervision and extra scrutiny from FINRA. I have previously blogged about statutory disqualification,…