Yesterday, NASAA released a Model Fee Disclosure Template for broker-dealers, urging firms voluntarily to adopt the model as a means of clearly disclosing to customers and prospective customers the types and amounts of various miscellaneous fees that BDs ordinarily charge their customers. Working with FINRA, SIFMA, the FSI, LPL Financial LLC, Morgan Stanley Smith Barney
UB Greensfelder
The SEC’s Proposal To Improve The Fairness Of Administrative Proceedings: Not Nearly Enough To Impact Its Winning Percentage, But Enough To Make It Seem It Cares
By UB Greensfelder on
In what many will likely consider to be an effort to quiet the increasing chorus of criticism over the SEC’s increased use of administrative proceedings over the last few years, today, the SEC announced a proposal to amend several of the rules governing those proceedings. While the SEC did not expressly acknowledge that the amendments…
Quick Hits: That’s Right. The Hits Keep Coming for Registered Individuals
By UB Greensfelder on
A couple of events caught my attention this week and, since they are related, I thought I’d address them together.
On Monday, the SEC announced a proposed rule change to FINRA Rule 8312, the FINRA BrokerCheck Disclosure Rule. Rule 8312 permits FINRA to disclose certain information on BrokerCheck about registered individuals. As many of you…
FINRA’s New Debt Research Report Rule, Or, In Other Words, When The Concept Of Managing “Conflicts Of Interest” Became Reality
By UB Greensfelder on
Much like some people (well, me, anyway) enjoy debating what was the first “punk rock” song to go mainstream (Pump It Up, by Elvis Costello, of course), others more erudite than I prefer, instead, to argue about what it was that initially propelled FINRA down its current Enforcement oriented path. To me, the answer has…
The Ongoing Puzzle Of Ongoing Due Diligence
By UB Greensfelder on
I am currently in the midst of a FINRA examination that is largely focused on the adequacy of the due diligence that my broker-dealer client conducted of a private placement. What is puzzling about the exam is that FINRA is not just interested in the due diligence that was conducted prior to effecting any sales…
Trying to Avoid Repaying a Forgivable Loan? No hiding in bankruptcy!
By UB Greensfelder on
Posted in Forgivable Loans, Note Claims
As an attorney that prosecutes non-payment of forgivable loan claims on behalf of BDs, I find these cases typically go one of two ways. In one case, the departed RR raises a series of frivolous counterclaims to try to get out from paying what is, on its face, usually a clear cut breach of contract…
Double Jeopardy: I’ll Take “Fundamental Unfairness” for $200, Alex
By UB Greensfelder on
I have written before about some of FINRA’s procedural processes that seem strange and unfair. For instance, the constitutionally guaranteed Fifth Amendment right against self-incrimination? Doesn’t exist in FINRA world. Try invoking the Fifth at a FINRA OTR rather than answering a question and you will be facing a permanent bar for violating Rule 8210.…
Compliance Officer Liability: Findings Without Sanctions? The Plot Thickens
By UB Greensfelder on
Posted in Administrative Proceedings, appeal, Compliance, Enforcement, RIA, Sanctions, SEC, Supervision
We have previously posted on the issue of CCO liability, a very sensitive subject, to say the least, for many readers of this blog. If this is a subject that interests you, then there was a very intriguing development this past week in this area that merits your attention.
It came in the form of…
FINRA Board Election: A Real Choice For a Change in the Mid-Size Firm Board Seat
By UB Greensfelder on
I have told many people over the years that the only way to effect true change at FINRA must come from the inside. I can write blog posts every day pointing out what I perceive to be the occasional error of FINRA’s ways, but apart from the cathartic effect it provides me to vent, the…
If You’re a Respondent, Time is NOT on Your Side
By UB Greensfelder on
Posted in Arbitration, Defenses, Disciplinary Process, Enforcement, FINRA, Registered Representative, SEC
There was a decision this week from the D.C. Circuit Court of Appeals on an appeal of a decision by a respondent who – stop the presses! – lost an SEC administrative proceeding, and then lost his appeal to the SEC. Montford and Company, Inc. v. SEC, No. 14-1126 (July 10, 2015). One of…