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
FINRA
Statutorily Disqualified? FINRA Says “Deal With It”
By UB Greensfelder on
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,…
When It Comes To Churning, FINRA Knows What’s Best For Investors
By UB Greensfelder on
Since I first started practicing law back in the 1980s, customer complaints against brokers have often involved allegations of “churning,” which is deemed to be fraud. Now, as it was 30+ years ago, to prove a churning claim, a customer needs to demonstrate that (1) the broker acted with scienter, which is defined to…
Frequently Asked Questions About FINRA Rule 8210
By UB Greensfelder on
As readers of this Blog know, Rule 8210 is a favorite subject of mine to complain about, particularly the frightening vigor with which FINRA constantly tests the limits of the rule. What follows are some very helpful FAQs about Rule 8210 from Michael Gross. – Alan
The Scope of the Rule
Can FINRA really ask…
A Settlement Agreement With FINRA (Or So You Thought)
By UB Greensfelder on
In OHO Order 16-26, a Hearing Officer confirmed what those uninitiated to FINRA’s disciplinary process likely would not even suspect: an agreement to settle a FINRA regulatory matter on terms proposed by FINRA’s Department of Enforcement is not necessarily an enforceable agreement.
In this case, the respondent argued that FINRA should be estopped from…
The Math of Mark-Ups/Downs
By UB Greensfelder on
I am pleased to welcome a new author to Broker-Dealer Law Corner, my partner in Ulmer’s Boca Raton office, Michael Gross. Like myself, Michael returned to private practice after a stint at FINRA, specifically, with the Department of Enforcement, where he handled big, litigated cases all over the US. There is no substitute for the…
Pick Your Poison: Given What A Jury Can Do, Is Arbitration Really That Bad?
By UB Greensfelder on
Posted in Arbitration, FINRA
Some of my clients simply cannot enough bad things about the arbitration process. It is expensive. It is unfair. There’s no industry panelist anymore. Claimants can get away with anything. Panels are sometimes comprised of people who care more about how many sessions they can get paid for than the merits of the case. Or…
Advertising Case Loss Reveals Limits To FINRA’s Jurisdiction Over Outside Business Activities
By UB Greensfelder on
It is a simple fact that a broker-dealer has no obligation to supervise a disclosed outside business activity. How do I know? FINRA has said so. This, for instance, comes straight from Reg Notice 05-50: “Rule 3030 does not require that the firm supervise or even approve an outside business activity, although a…
Trouble With Your Clearing Firm? FINRA To The Rescue
By UB Greensfelder on
For the most part, my broker-dealer clients are introducing firms that clear through any number of generally recognized clearing firms. Increasingly, for whatever reason, I have been asked to get involved in disputes with clearing firms surrounding terms contained in the clearing agreement. Unfortunately, this typically turns into a big problem, as these agreements are…
Procedural Motions In FINRA Enforcement Actions: An Exercise In Futility
By UB Greensfelder on
Defending a FINRA Enforcement action is not easy. This stems principally from the fact that FINRA simply won’t file a complaint in the first place if they believe that there’s any realistic chance they will not win the case. Thus, they expect to win every time they do file a complaint, and perhaps not unreasonably…