I am on the record, many times, with my belief that, at least in theory, FINRA should never lose any Enforcement cases it files. This is for the simple reason that if FINRA has any genuine doubts about its ability to prevail in front of a hearing panel, due to the quality of the evidence
Rule 2010
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…
Frequently Asked Questions About FINRA Rule 8210
By Michael Gross 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…
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…
FINRA’S Ability To Enforce Securities Act Violations Subject To Compelling Court Challenge
By Alan Wolper on
Last week, word spread about a legal challenge that has been mounted in federal court against FINRA’s ability to enforce violations of the Securities Act of 1933, and, perhaps not surprisingly, it has generated a lot of talk, not to mention enthusiasm (at least among those who chafe at FINRA’s aggressive Enforcement mentality). The specifics…
PIABA Cries Wolf, Again, To Ensure That Its Lawyers Get Paid
By Alan Wolper on
Once again, I found myself gritting my teeth in frustration after reading yet another PIABA report complaining about some perceived inequity in the FINRA arbitration process that cuts against customers. This week, PIABA released its study demonstrating that sometimes when claimants prevail in arbitrations against broker-dealers, the BD that lost is unable to pay the…