The longer I do this, the more apparent it becomes just how little anything changes. Sure, some things do change, a little. Rule numbers may get updated, as Rule 2310 becomes Rule 2111. Things that once may have been done manually are now automated. NASD changes its name to FINRA. But, in large ways, especially
Alan Wolper
Alan focuses his practice exclusively on defending regulatory investigations and enforcement actions brought by the Financial Industry Regulatory Authority (FINRA), the United States Securities & Exchange Commission (SEC), and state securities commissioners against brokers, broker-dealers, and investment auditors. He was previously Director of the National Association of Securities Dealers (NASD) Atlanta District Office, where he oversaw nearly 600 member firms and thousands of branch offices. Alan also served as a member of the NASD's Department of Enforcement, where he had the primary responsibility for prosecuting hundreds of formal disciplinary actions.
FINRA ♥ Rule 8210
By Alan Wolper on
I hope that you have had the chance to enjoy Jessica Hopper’s paean to Rule 8210 in her recent blog posted on FINRA’s website. Very disturbing, and for all the old reasons.
First, once again, she starts by patting herself – well, not just herself, I guess, but Enforcement generally – on the back for…
Goodbye Suitability, Hello Best Interest. But What Does That Mean, Practically Speaking?
By Alan Wolper on
After having proudly served for decades, and surviving a dramatic face-lift in 2012 (when old NASD Rule 2310 was replaced by shiny new FINRA Rule 2111), it seems that the “suitability rule,” as we’ve come to know it, has, at long last, been quietly sent out to pasture by FINRA. Although the title of Reg…
What Do You Call A Nominating Committee That Doesn’t Actually Nominate Anyone? A FINRA Nominating Committee
By Alan Wolper on
This will be a quick one, but I just had to get something off my chest before the weekend. As you probably know, there is an election upcoming. No, not that one, the one to elect certain members of FINRA’s Board of Governors. That Board consists of 24 members, as follows:
- Robert Cook, who is
…
More Thoughts On Hold Recommendations In A Reg BI World
By Alan Wolper on
I have blogged before about hold recommendations. Surprisingly – at least to me – the statistics I get from the publisher of this blog reveal that more people have read that particular post than anything else I have written since I started this thing a few years ago. That has to mean something, right? …
For FINRA, Restitution Is The Solution
By Alan Wolper on
Seems like just days ago I blogged about Jessica Hopper and her commitment to providing restitution to customers. Since I posted that blog, there were two other settlements (which I added to that blog as updates) in which FINRA again seemed to prioritize restitution over the imposition of a fine. Yesterday, however, FINRA announced a…
FINRA’s New MAP Rules Put Customers’ Interests Ahead Of Everything, Including Logic
By Alan Wolper on
Two years ago, when it was just an ugly rule proposal, I blogged about FINRA’s intent to modify its MAP rules to “Incentivize Payment of Arbitration Awards.” Sadly, FINRA once again showed it spinelessness by pushing these rule amendments through, ignoring the concerns of its own member firms. They are now not just rule proposals,…
The Trouble With The “Should-Have-Known” Standard, As It Applies To Red Flags
By Alan Wolper on
Last year, I wrote a piece called “Wedbush Learns That It’s Not Enough Just To Spot Red Flags.” As the title suggests, it analyzed an SEC decision in which Wedbush was sanctioned because it failed in several respects to follow up on certain red flags it saw that were indicative of potential misconduct.
I am…
SunTrust Settlement Proves That Jessica Hopper, FINRA’s Head Of Enforcement, Would Be A Good Umpire
By Alan Wolper on
I may have said this before in another post, but in my opinion, whether a baseball umpire is good or bad is not a matter of whether he has a low strikezone, a high strikezone, or a wide one. What matters is that whatever that umpire deems to be a strike vs. a ball is…
FINRA’s Concerns About Maintaining Confidentiality Seem To Be Broadening
By Alan Wolper on
I hope that, by now, everyone understands and appreciates just how freakishly sensitive the regulators are to misconduct involving the wrongful sharing of confidential information. If you don’t, however, FINRA was kind enough to publish two settlements in the last few weeks that work well to drive this concept home. And both share an interesting…