FINRA Enforcement has often been accused (again, admittedly, by me, and not too infrequently) of going after the “low-hanging fruit,” that is, taking the easy case when it presents itself. Putting aside the question whether this observation is accurate or not – for what it’s worth, I think the answer is that it is often,
FINRA
Gamification: Regulators Should Try The Investor Education Game
By Michael Gross on
The controller has been passed to a new team of players in Washington. New players prefer to hit the reset button and start a new game, not pick up where the prior player left off. We know how our new players like to play the game. They want to control every aspect of the game…
FINRA Withdraws Proposed Expungement Rule Changes It Has Worked On For Four Years After Pushback From SEC
By Chris Seps on
Sorry for the flurry of posts this week, but the development Chris writes about here was not expected, and it is important enough that I decided to push it out today, on the eve of a three-day weekend. – Alan
Today FINRA announced in a press release here that it has withdrawn from SEC consideration…
JAMS vs. FINRA Arbitrations . . . And The Winner Is JAMS
By Alan Wolper on
Posted in Arbitration, FINRA
So I spent last week – the whole week – doing an arbitration with JAMS. It involved some of the typical elements of a FINRA claim, e.g., allegations of the sale of an unregistered security, of an “investment” gone bad, of misrepresentations and omissions in connection with the “sale” of that “investment,” but for reasons…
PIABA’s New Expungement Study Shows…Nothing Has Changed, Including The Quality Of Customers’ Claims
By Chris Seps on
I have been in a JAMS arbitration the last week or so, so thanks to Chris — Mr. Expungement — for his thoughts about PIABA’s study. – Alan
In a move that surprised nobody, PIABA[1] recently released an updated study on expungement awards from 2019/2020, and, in the most predictable fashion, they continue to…
You Should Understand The Difference Between Violating A Firm Policy And Violating A FINRA Rule . . . Even If FINRA Doesn’t
By Alan Wolper on
I am writing this while flying home from my first business trip in over 15 months. I have to tell you, it is more than a bit of a strange feeling to be out and among people again. While my face is sore from wearing this N95 mask nearly non-stop for three days, my hands…
FINRA’s New Rules Are A Game-Changer, Especially When It Comes To Hiring . . . And Not In A Good Way
For many years, FINRA has attempted in several settings to substitute objective criteria for subjective ones, to try and make things easier for itself, and to make things more consistent from district to district and from firm to firm. For instance, FINRA used to – and may still today – identify firms whose exam cycles…
FINRA Got It Right When It Comes To BCPs . . . But Not So Much On SARs
By Alan Wolper on
FINRA is often accused (mostly rightfully, and certainly by me) of being a horse-is-already-out-of-the-barn sort of regulator, jumping on an issue only after the problem has already arisen and made it to the front page of the Wall Street Journal. But, that’s not always the case. Indeed, there are occasions when FINRA is out ahead…
Credit Suisse Runs Into Trouble Trying To Monitor Outside Brokerage Accounts, Despite Its Best Intentions
By Alan Wolper on
I am back from Spring Break — spent here, in my home, of course — and I hope that you all had a nice Easter or Passover, or whatever. Good to be back. – Alan
Sometimes, the numbers that FINRA cites in its settlements with big broker-dealers are so ridiculously large that it’s nearly impossible…
If You Supervise Yourself — Which You Cannot Do — Make Sure You Do It Right
By Alan Wolper on
I have always operated with the understanding that, per FINRA rules, one cannot supervise him- or herself. Hardly an outrageous proposition. Today, however, that fundamental, bedrock understanding was so shaken, it has left me wondering whether anything is what it seems (especially when coupled with Loyola’s win this weekend over Illinois, which, really, can only…