As the song goes, time keeps on slipping, slipping, slipping into the future. While Steve Miller may not have had FINRA and the SEC in mind when he wrote that lyric, the shoe certainly fits. Because here’s the thing about the passage of time, at least in FINRA/SEC world: typically, regulators pay it little attention.
broker-dealers
So You Received A Rule 4111 Letter From FINRA Informing You That You’re Presumptively A “Restricted Firm.” Now What??
By Alan Wolper on
It’s always exciting to watch something that you just know will be deemed by later generations to be an historic event. I mean, I distinctly remember watching Neil Armstrong on TV taking his first steps on the moon, or the tragic Challenger disaster, or OJ demonstrating how the glove just didn’t fit, and thinking: this…
Determining Chief Compliance Officer Liability Isn’t Really That Confounding
By Alan Wolper on
About a month ago, the SEC announced a settlement in a modest little case that has, nevertheless, managed to garner a lot of attention. This is a result of the fact that one of the respondents was the CCO, i.e., the Chief Compliance Officer, of the co-respondent RIA. Determining the particular circumstances under which CCOs…
Equitable’s Settlement With The SEC Demonstrates That A Single Customer Complaint Can Serve As Notice Of A Systemic Issue
By Alan Wolper on
Last week I posted a blog about the dangers of not heeding findings made during a regulatory exam, at least findings of clear, undisputable compliance issues that cannot be meaningfully defended. Today I am writing to highlight a corollary rule: if one customer points out the existence of a real problem, again, a clear problem…
Barclays AWC Teaches Important Lessons About The Price To Pay For Not Heeding Exam Findings
By Alan Wolper on
There is no question in my mind that the quality of FINRA examiners is a bit uneven. Some are smart and insightful and helpful; others are, well, not. Most of the time, they do know what they’re talking about. That means the opportunity to make legitimate arguments against exam findings can, at least sometimes, be…
When It Comes To GPB, FINRA Looks At Things Quite Differently Than The SEC And The DOJ
By Alan Wolper on
Among the criticisms I have leveled against FINRA are (1) that it is increasingly acting like a claimant’s arbitration attorney, by taking every possible opportunity to blame member firms for losses incurred by investors when other palpable reasons for those losses exist, and (2) that it loves, well after the fact, to jump in on…
The 411 On FINRA Rule 4111
By Alan Wolper on
Posted in FINRA
Well, Memorial Day is just past us, so we all know what that means: it’s time for FINRA to conduct its first annual assessment of its member firms to determine whether they should be branded a “Restricted” firm under new Rule 4111, with all the benefits and privileges appurtenant thereto. Given that it’s pretty clear…
FINRA’s Fixation On Unpaid Arbitration Awards Has Morphed Into Something More Dangerous
By Alan Wolper on
Shortly, I hope to get around to drafting a blog post about FINRA’s latest demonstration of abasement to PIABA and claimants’ counsel everywhere, namely new Rule 4111. But, that rule is such a monstrosity that it will take a little time to parse, and a lot of work to get the post shorter than ten…
More Thoughts On The Age Of FINRA Arbitrators
By Alan Wolper on
Posted in Arbitration, FINRA
Not too long ago, I wrote a piece complaining about (among other things) the fact that the potential arbitrators that FINRA rolled out to the parties in a particular arbitration I was handling skewed juuuuuuust a bit towards the older end of the age spectrum; indeed, the average age of the ten potential chairpersons was…
Some Ideas In Response To FINRA’s Recent “Discussion Paper” On Expungement
By Chris Seps on
FINRA recently published a “Discussion Paper” on expungement of customer dispute information in which it outlines its plans going forward on revising the expungement process. Expungement_Discussion_Paper.pdf (finra.org) (Let me just start by applauding FINRA for trying hard to get this right. The current patchwork of expungement rules and guidance could use some improvements, and there…