All of you who use Equifax to conduct a part of your CIP responsibilities, raise your hands. Ok, now, only to those of you whose hands are in the air: how many of you have checked your firm’s incident response plan to determine the steps that need to be taken in the event of a
UB Greensfelder
What Is FINRA’s Job?
By UB Greensfelder on
Posted in Compliance, FINRA
A client of mine bought a BD, thereby requiring him to go through the CMA process. It was a very small firm, with fewer than ten registered reps. He was a newly minted 24, so he had other, more experienced principals on board to handle all supervisory responsibilities. His job, as outlined in the firm’s…
I Want HIS Lawyer!
By UB Greensfelder on
A little over a year ago, the SEC announced a stunning settlement with Merrill Lynch regarding its violation of SEC Rule 15c3-3, commonly known as the “Customer Protection Rule.” This is an important rule whose name gives away its purpose: it is designed to ensure that if a broker-dealer ever fails, customer assets can be…
Dawn Bennett Redefines “Spirited Defense” In Her SEC Case
By UB Greensfelder on
This one belongs in the “truth is stranger than fiction” category. By now, you are probably familiar with the exploits of Dawn Bennett, former hostess of her radio show, “Financial Myth Busting.” She was the one who the SEC permanently barred last year after she elected not to appear at her administrative hearing (after her…
Has FINRA Completed Its Inquiry?
By UB Greensfelder on
Here is a very interesting post from Michael Gross about what happens at the end of a FINRA exam. One point that he omitted, but worth mentioning, is that in the event FINRA does issue a close-out letter stating that its exam is done and no disciplinary action will be taken, that letter cannot be…
The Head-In-The-Sand Approach To Supervision: A Primer
By UB Greensfelder on
There’s a claimant’s lawyer I’ve litigated against several times who is very good at his job, and who I personally like very much. Part of the reason for his success is that he is very engaging, so even when he utterly lacks any decent facts on which to base his claim – which is often…
FINRA’s Board Acts To Fix The Problem…That FINRA Created
By UB Greensfelder on
So, as you undoubtedly recall, in its typical reactive approach to regulation, FINRA has expressed concern – after having concerns expressed to it by others (none of whom are actually from the securities industry, of course) – about (1) the high number of registered reps working in the industry with spotty disciplinary records, and (2)…
Let The Sun Shine On FINRA’s Office Of Disciplinary Affairs
By UB Greensfelder on
Back in the old days, back when it was still NASD and it bore some reasonable semblance of a true self-regulatory organization, the important decisions relating to the Enforcement process – the decision to issue a complaint, the decision to settle a case, and the decision in litigated matters that actually went to hearing –…
FINRA’s Annual Report: I Wish It Was Fake News
By UB Greensfelder on
Posted in Annual Report, FINRA
This past week, FINRA very, very quietly released its Annual Report for 2016. Too quietly, as they say in the movies. No press release. No press conference. No media attention at all, hardly. As President Trump just asked about State Election Commissioners who refused to respond to a request from his Election Fraud taskforce for…
The Unassailable FINRA Rule 8210
By UB Greensfelder on
My dissatisfaction with FINRA’s Rule 8210 and, more specifically, the aggressive manner with which FINRA wields that rule, has been the subject of several prior blogs. I happy to report that my partner, Michael Gross, has drunk the Kool-Aid, and joined me in tilting at this windmill. – Alan
The first paragraph of a paper…