I am still catching up on things that happened over the last couple of months, as I dig myself out of the hole created by (finally) completing a 39-day FINRA arbitration (SOC filed in 2014, hearing started in 2019). Truthfully, it seems there’s been a lot of the usual. You know, FINRA taking formal disciplinary
FINRA
A Sad Story Of Regulators Simultaneously Doing Too Much And Too Little
By Alan Wolper on
Not too long ago, a single, small BD experienced a bizarre combination of regulatory overzealousness and regulatory indifference, by the SEC and FINRA, respectively. These things, sadly, happen all the time, but what happened to this unfortunate firm presents an excellent case study in regulators who simply do not wield their considerable prosecutorial discretion in…
FINRA Is Bearish On FinTech (For Now) With Its Record Fine Against Robinhood
By Denise Fesdjian on
I am certain that, by now, you have read the Robinhood AWC. Here is a fascinating take on that settlement, and what it portends for the securities industry, as well as for FINRA, by Denise. – Alan
There’s no question that FinTech firms are on the rise, and attempting to revolutionize the financial services space…
For FINRA, Unlike The SEC, Blaming The BD Always Seems To Be The Answer
By Alan Wolper on
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,…
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Today FINRA announced in a press release here that it has withdrawn from SEC consideration…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…