I read an article this week bemoaning the fact that “rogue brokers” – a term that is commonly used but steadfastly undefined – apparently remain rampant in the securities industry. Anyone that has read FINRA’s 2017 Exam Priorities Letter knows that this is one of the issues on which FINRA intends to focus its regulatory
FINRA
Is FINRA Guilty Of Gaslighting Us When Its CEO Says Things Will Be Different?
By UB Greensfelder on
Posted in FINRA
Since the presidential election, heck, since the campaign, my friends and family will readily attest that my new favorite word is “gaslighting.” According to Wikipedia, it is “is a form of manipulation that seeks to sow seeds of doubt in a targeted individual or group, hoping to make the target question their own memory, perception,…
FINRA Releases Its 2017 Exam Priorities: No More “Culture Of Compliance” References, Plus The List Of Usual Suspects
By UB Greensfelder on
In the blog I posted yesterday, I discussed a late Xmas present that the 10th Circuit gave everyone who is subject to the SEC’s jurisdiction. Today, let’s talk about FINRA’s New Year’s gift to its member firms: the annual Regulatory and Examination Priorities Letter, which was released this week. As is typically the…
Swing And A Miss: A Rare Form U-4 Loss For FINRA
By UB Greensfelder on
I have blogged multiple times, as recently as a couple of weeks ago, about the slew of Enforcement actions that FINRA has brought for an RR’s failure to update his or her Form U-4 in a timely manner to disclose a tax lien. My partner, Michael Gross, examines one such case that FINRA managed to…
Statutorily Disqualified? FINRA Says “Deal With It”
By UB Greensfelder on
It is a nasty thing when one becomes statutorily disqualified. It means either leaving the industry, permanently, or having to file an MC-400 and trying to convince FINRA that you should be permitted to remain in the industry, albeit subject to heightened supervision and extra scrutiny from FINRA. I have previously blogged about statutory disqualification,…
When It Comes To Churning, FINRA Knows What’s Best For Investors
By UB Greensfelder on
Since I first started practicing law back in the 1980s, customer complaints against brokers have often involved allegations of “churning,” which is deemed to be fraud. Now, as it was 30+ years ago, to prove a churning claim, a customer needs to demonstrate that (1) the broker acted with scienter, which is defined to…
Frequently Asked Questions About FINRA Rule 8210
By UB Greensfelder 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…
A Settlement Agreement With FINRA (Or So You Thought)
By UB Greensfelder on
In OHO Order 16-26, a Hearing Officer confirmed what those uninitiated to FINRA’s disciplinary process likely would not even suspect: an agreement to settle a FINRA regulatory matter on terms proposed by FINRA’s Department of Enforcement is not necessarily an enforceable agreement.
In this case, the respondent argued that FINRA should be estopped from…
The Math of Mark-Ups/Downs
By UB Greensfelder on
I am pleased to welcome a new author to Broker-Dealer Law Corner, my partner in Ulmer’s Boca Raton office, Michael Gross. Like myself, Michael returned to private practice after a stint at FINRA, specifically, with the Department of Enforcement, where he handled big, litigated cases all over the US. There is no substitute for the…
Pick Your Poison: Given What A Jury Can Do, Is Arbitration Really That Bad?
By UB Greensfelder on
Posted in Arbitration, FINRA
Some of my clients simply cannot enough bad things about the arbitration process. It is expensive. It is unfair. There’s no industry panelist anymore. Claimants can get away with anything. Panels are sometimes comprised of people who care more about how many sessions they can get paid for than the merits of the case. Or…