Back in the old days, back when it was still NASD and it bore some reasonable semblance of a true self-regulatory organization, the important decisions relating to the Enforcement process – the decision to issue a complaint, the decision to settle a case, and the decision in litigated matters that actually went to hearing –
Enforcement
The Unassailable FINRA Rule 8210
By UB Greensfelder on
My dissatisfaction with FINRA’s Rule 8210 and, more specifically, the aggressive manner with which FINRA wields that rule, has been the subject of several prior blogs. I happy to report that my partner, Michael Gross, has drunk the Kool-Aid, and joined me in tilting at this windmill. – Alan
The first paragraph of a paper…
What Else Is New? FINRA Skates Despite “Massive” Failure To Produce Documents
By UB Greensfelder on
Let’s play pretend. Can you imagine what FINRA would do to a respondent broker-dealer in an Enforcement action that announced on Day Five of the hearing – i.e., during the “final phase” of the hearing – that – whoops! – it had forgotten to produce certain documents that it should have produced eight months before…
Don’t Let The Revolving Door Hit You In The Butt
By UB Greensfelder on
There has been a lot of talk, especially given the relatively recent change in the Executive Branch in Washington, about the problem with the “revolving door,” a concept so wide in scope that it actually has its own Wikipedia page. It is defined to be the “movement of personnel between roles as legislators and…
Rogue Brokers: The Numbers Do Not Tell The Whole Story
By UB Greensfelder 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 Provides The Blueprint For Monitoring Outside Business Activities
By UB Greensfelder on
Outside business activities are in the news. In Reg Notice 17-20, FINRA announced that it was seeking comments in an effort to learn whether or not the existing rules governing OBAs are effective. (The comment period is open until late June, so if you have strong feelings on the subject, now is the time…
Where’s The Beef? The SEC Complains That Filing A SAR Isn’t Enough If It Skimps On Details
By UB Greensfelder on
Many of my clients chafe at the AML rule, given the cost of compliance and the even higher cost of defending an Enforcement action if the regulators conclude that red flags were somehow missed, or spotted but not dealt with adequately, or soon enough, or both, or spotting the red flags, responding to them, but…
Does FINRA Give Credit For Self-Reporting Problems? It Says It Does, But….
By UB Greensfelder on
I read a fascinating piece the other day in BankInvestmentConsultant about FINRA’s Enforcement program, specifically about the notion of broker-dealers self-reporting problems, and whether that was a smart thing to do. Some of the quotes attributed to FINRA senior Enforcement management are really interesting, so I wanted to share them with you in the event…
Body-Slammed By FINRA, Twice In A Week
By UB Greensfelder on
Posted in Arbitration, Disciplinary Process, Enforcement, FINRA, PIABA, Rule 9555, Statutory Disqualification
I sometimes (well, perhaps frequently) use this blog as a vehicle to complain about certain things that FINRA does, or about certain of its rules, that I feel are just unfair, plain and simple. To show you that I am not simply making this up, I experienced two such events this past week, which I…
FINRA’s AML Fines: Murky (And Expensive) Waters
By UB Greensfelder on
Posted in AML, Disciplinary Process, Enforcement, FINRA, Rule 3011, Rule 3310, Sanctions, Supervision
In this post, Michael Gross complains — and rightly so — about the lack of any definitive guidance from FINRA regarding the appropriate range of fines to be imposed for AML violations. The bigger issue, however, at least in my view, is not necessarily the lack of guidance, but the fact that the fines FINRA…