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
broker-dealer
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…
Actions Speak Louder Than Words: The Regulation of Chief Compliance Officer (CCO) Conduct
By UB Greensfelder on
Yesterday, the SEC held its 2015 “National Compliance Outreach Program for Broker-Dealers.” The program was designed to “provide[] an open forum for regulators and industry professionals to share strong compliance practices and promote the exchange of ideas to develop an effective compliance structure.” In the spirit of this cooperation, SEC Chairwoman White opened the conference…
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…
FINRA Got It Right – The New Definition of a Non-Public Arbitrator
By UB Greensfelder on
Posted in Arbitration, FINRA
By now, it should be clear, we are oft to criticize FINRA in this blog. Much of that criticism is self-inflicted by, in our view, their unfair or unreasonable decisions. But, in a departure from the norm, I want to recognize an instance when FINRA is getting something right.
Effective this Friday, there will be…
FINRA’s Code Of Procedure: Unfair To The Gander
By UB Greensfelder on
We have complained before in this blog about some of the obvious inequities associated with the FINRA Enforcement process that disfavor respondents. But I heard of a new one this week from a colleague, so I thought I would take the opportunity to revisit the issue.
While there are several things problematic about the Code…
BrokerCheck: Please, Sir, May I Have Some More?
By UB Greensfelder on
FINRA recently announced a multi-million dollar ad campaign to increase public awareness of BrokerCheck, in an effort to increase the number of investors who actually use it. I had a few initial thoughts.
First, as I have observed before, it is hardly a secret that BrokerCheck does not serve as the basis for the vast…