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
FINRA
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…
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.…
FINRA Discovery Guide’s Misguidance: Part 2
By Chris Seps on
I’ve previously posted about my frustration with the way the discovery guide is written, with particular attention focused on List 1 Item 10. See my prior post here. Item 14 causes me similar angst. Why? Because Item 14 is so poorly worded that, if read literally, almost no audit report will ever be responsive…
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…
FINRA Discovery Guide’s Misguidance: Part 1
By Chris Seps on
FINRA’s Discovery Guide for Customer Disputes is not perfect. I think that FINRA would be the first one to admit that – which is why the Discovery Guide adopted under the Code of Arbitration Procedure for Customer Disputes has been revised three times in the past five years, and a task force has been set…
For Those About to be Suspended: The Guessing Game is Over Whether You Can Receive Your Trails
By UB Greensfelder on
Posted in Disciplinary Process, Enforcement, FINRA, Rule 2040, Rule 8311, Sanctions, Supervision, suspension, Trail commissions
There are lots of FINRA rules, so many that some don’t get the attention they deserve because others, like the suitability rule or the supervision rule, generally hog the limelight. Moreover, some rules have such narrow application that you may not realize they even exist because they impact only a very few people or entities.…
How Do You Make a Million Dollars? Become Part of FINRA Senior Management!
By UB Greensfelder on
I’m not sure that I’m as excited as Navin Johnson was when the new phone books were delivered — https://www.youtube.com/watch?v=-7aIf1YnbbU – but I was pretty happy when FINRA published its 2014 Year in Review and Financial Report. That’s because, at a minimum, I get to enjoy the part where it reveals the compensation paid…
FINRA’s (Mostly) New Background Check Rule Goes Into Effect July 1
By UB Greensfelder on
As everyone who studies FINRA’s Regulatory Notices is already well aware, two days from now, FINRA’s rule requiring background checks on prospective registered representatives goes into effect. A lot of what the new rule mandates is not new, but, as there are some things that clearly were not required before, it is worth taking a…