There are certain topics that broker-dealers have been encountering for decades, yet continue unnecessarily to wrestle with due to the absence of clear guidance from the regulators. I have written about one such topic before, and that’s the fuzzy line between most outside business activities, which RRs are obliged (at a minimum) by rule to
investment advisers
More Thoughts On Hold Recommendations In A Reg BI World
By Alan Wolper on
I have blogged before about hold recommendations. Surprisingly – at least to me – the statistics I get from the publisher of this blog reveal that more people have read that particular post than anything else I have written since I started this thing a few years ago. That has to mean something, right? …
When It Comes To Testifying To The SEC, Providing Alternative Facts Can Be A Bad Idea
By Alan Wolper 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…
SEC Gives Advisors A Break On Custody Rule
By Alan Wolper on
Posted in custody rule, SEC
A common complaint that I hear from broker-dealers and investment advisors is that it is nearly impossible anymore to obtain informal guidance from their regulators. Where it was once possible, even normal, to make a call and get casual advice how to comply with a particularly tricky rule, nowadays, regulators routinely decline to respond to…
Tell Me Something I Don’t Know: OCIE’s Tips To Surviving An SEC IA Exam
By Alan Wolper on
Let’s chalk this one up to “great minds think alike,” or maybe just “minds think alike.” You may recall that in his recent letter to member firms that accompanied FINRA’s 2017 Exam Priorities Letter, FINRA CEO Robert Cook said, “starting this year, we will publish a summary report that outlines key findings from examinations in…
The First Circuit Makes The Case Against Cherry-Picking Instances Of Alleged Misrepresentations By Focusing, Instead, On “Context”
By Alan Wolper on
Years ago, I handled the defense of a FINRA Enforcement case that still galls me. The client sent a series of emails, over many months, about a particular security to customers who already owned the stock. The point of the emails was largely to provide updates, and, from time-to-time, to suggest that the customers consider…
Compliance Officer Liability: Findings Without Sanctions? The Plot Thickens
By Alan Wolper on
Posted in Administrative Proceedings, appeal, Compliance, Enforcement, RIA, Sanctions, SEC, Supervision
We have previously posted on the issue of CCO liability, a very sensitive subject, to say the least, for many readers of this blog. If this is a subject that interests you, then there was a very intriguing development this past week in this area that merits your attention.
It came in the form of…
David Slays Goliath: Texas Investment Advisor Beats SEC In Administrative Proceeding
By Alan Wolper on
If you have been a regular reader of this Blog, or even if you just browse the Wall Street Journal on occasion, you have undoubtedly noticed the attention being given over the last few weeks to the SEC’s decision increasingly to bring its Enforcement cases before Administrative Law Judges, rather than in federal court.…
SEC Supports Creating a Uniform Fiduciary Standard; But is FINRA Already Enforcing It?
By Heidi VonderHeide on
SEC Chairwoman Mary Jo White recently announced her support of a uniform fiduciary standard for broker-dealers and investment advisers, ending any remaining speculation as to her views on the subject. The announcement kicked of a whirlwind of speculation in the industry – What would the new standard look like? When would we see it? Will…