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
Enforcement
As Berthel Fisher Just Learned, Those Who Don’t Know FINRA’s History Of Disciplinary Actions Are Doomed To Repeat It
By UB Greensfelder on
I have often used these posts to lament the fact that FINRA consistently acts as an enforcement driven group of crazed examiners, hell-bent on writing firms up for technical violations, at best, uncaring about the dramatic ramifications of their seemingly ceaseless attack on well-meaning broker-dealers and their owners. While I still harbor those feelings, occasionally…
When It Comes To Testifying To The SEC, Providing Alternative Facts Can Be A Bad Idea
By UB Greensfelder on
At the beginning of most FINRA OTRs, the examiner reads from a script of sorts, outlining some of the basic rules governing the proceeding. One of the things the script calls for is an express acknowledgement by the witness that he or she is testifying pursuant to Rule 8210, and that, as a result, a…
FINRA Tweaks The Sanction Guidelines Again And – Guess What? – It Wasn’t To Make Them Gentler
By UB Greensfelder on
Remember a few weeks ago? Remember I blogged about Robert Cook, FINRA’s new CEO? And how he was saying all the right things about FINRA perhaps being juuuuust a bit too Enforcement oriented? I expressed hope – sincere but wary hope – that given his remarks, it was possible that the pendulum might actually start…
Some Amusing OHO Decisions
By UB Greensfelder on
As a former member of FINRA Enforcement’s Litigation Department and a current practitioner in FINRA regulatory matters, I have read my fair share of decisions from the Office of Hearing Officers (OHO). I recently read the Southeast Investments/Black decision, which was issued in March. There is some good stuff in there – from an entertainment…
When FINRA Can’t Discipline The Firm, Individuals Pay The Price
By UB Greensfelder on
There has been a lot of discussion over the past few years, including in this blog, about the growing – and troubling – trend for Chief Compliance Officers to be named as respondents in disciplinary actions. While regulators regularly deny that they truly have it out for CCOs, as is often the case, their…
SEC ALJs, Part 3: Separation Of Power/Removal Defense Rides On Coattails Of Reinvigorated Appointments Clause Defense
By Ken Berg on
In my second post on constitutionally-based affirmative defenses to SEC administrative proceedings, I discussed the shift of momentum in favor of the defense that the process of hiring SEC ALJs violates the Appointments Clause of the U.S. Constitution. This post examines the defense that the process of removing SEC ALJs violates the separation of power…
FINRA OTRs: Preparation Is The Key
By UB Greensfelder on
Last week, I published a post about the benefits of “lawyering up” when dealing with FINRA, particularly to handle the defense of an OTR. Here, my partner Michael Gross, who, like me, is a former FINRA Enforcement attorney, offers his advice about how properly to prepare for an OTR. While this post is helpful, it…
It Can Pay To “Lawyer Up” When Dealing With FINRA
By UB Greensfelder 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…
Article II Appointments Clause Defense To SEC Administrative Actions Gains Momentum In The Courts
By Ken Berg on
Here is Part II of Ken Berg’s analysis of constitutional defenses that have been raised in response to the SEC’s increased use of administrative proceedings. In the interest of full disclosure, note that the Malouf case referenced towards the end is one that Heidi VonderHeide and I are handling. In addition, it also worth mentioning…