FINRA came out with a slightly weird Regulatory Notice last week. In a succinct document, barely over two pages, FINRA addressed something that may, or may not, actually be of concern to anyone. In short, Regulatory Notice 19-10 states FINRA’s position on what a broker-dealer is supposed to tell the customers of a registered representative
Registered Representative
Rogue Brokers: The Numbers Do Not Tell The Whole Story
By Alan Wolper on
Not too long ago, I blogged a couple of times about the amount of attention that is suddenly being paid to the number of registered representatives with disciplinary histories working for FINRA member firms, i.e., the so-called recidivists (who used to be called “rogue reps”). Among the complaints I voiced was the fact that while…
FINRA’s Board Continues To Bend In the Wind Of Criticisim
By Alan Wolper on
Posted in Arbitration, Board of Governors, Enforcement, FINRA, PIABA, Registered Representative, Rogue rep, Rule 2010, Sanctions
On Wednesday, the FINRA Board met and discussed two topics that I recently blogged about: recidivist brokers and unpaid arbitration awards. In predictable fashion, FINRA withered in the face of criticism that its existing rules and policies are somehow not tough enough on its member firms, and embarked on a proposed series of steps…
Sticks And Stones May Break Your Bones, But Words Will Get You Barred
By Alan Wolper on
I have been meaning to write something about this recent NAC decision for a while now, but I am still not really sure what to make of it. I suppose it stands for two propositions. First, there is almost nothing that a registered rep can do without FINRA sticking its nose in, regardless of whether…
It Can Pay To “Lawyer Up” When Dealing With FINRA
By Alan Wolper on
Posted in Defenses, Disciplinary Process, Enforcement, Examination, FINRA, OTR, Registered Representative, Sanctions
I realize that the title of this blog post may sound self-serving, so I apologize for that up front, as it is not my intent. Still, there is a lesson here to be learned.
I got a phone call yesterday from a reporter asking me to comment on a disciplinary action that FINRA had just…
Is There A Catch-22 To Fighting FINRA Charges?
By Michael Gross on
Here is a fascinating analysis by my partner, Michael Gross, of FINRA’s twisted logic when it comes to sanctions: your very decision not to admit liability and to put FINRA to its proof can, and will, be held against you when it comes time to determine the appropriate sanctions. Or will it? – Alan
The…
FINRA Is Going Rogue…Again
By Alan Wolper on
I read an article this week bemoaning the fact that “rogue brokers” – a term that is commonly used but steadfastly undefined – apparently remain rampant in the securities industry. Anyone that has read FINRA’s 2017 Exam Priorities Letter knows that this is one of the issues on which FINRA intends to focus its regulatory…
The Long Arm Of The Law Has Nothing On FINRA’s Reach
By Alan Wolper on
So, you’re a registered rep, working for a broker-dealer. Necessarily, you are registered with and subject to the oversight of FINRA, not a particularly happy proposition. But at least you can take comfort in the fact that while FINRA may have the right to stick its nose into your securities business, what you do away…
A Miscellany Of FINRA Issues A Little Too Big To Call Nitpicking
By Alan Wolper on
For some reason, a bunch of noteworthy events all happened around the same time this week, so please bear with me as I vent a little about them. Individually, they are irritating; in the aggregate, they are borderline alarming.
First, the FINRA Wells process. I have blogged about this before, and how, in a…
The Devil Is In The Details When It Comes To Enforcing Arbitration Agreements With Registered Reps
By Alan Wolper on
It should be abundantly clear to everyone that BDs are required to arbitrate disputes with their registered reps. There are several reasons I can assert this with such a great deal of certainty. First, and most obvious, there is a rule about it. Rule 13200(a) of the Code of Arbitration Procedure provides that
[e]xcept as…