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
registered rep
FINRA OTRs: Preparation Is The Key
By Michael Gross 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 Alan Wolper 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…
Is There A Catch-22 To Fighting FINRA Charges?
By Michael Gross on
Here is a fascinating analysis by my partner, Michael Gross, of FINRA’s twisted logic when it comes to sanctions: your very decision not to admit liability and to put FINRA to its proof can, and will, be held against you when it comes time to determine the appropriate sanctions. Or will it? – Alan
The…
FINRA Is Going Rogue…Again
By Alan Wolper on
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…
Frequently Asked Questions About FINRA Rule 8210
By Michael Gross 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…
The Wendell Belden Case And Its Progeny: Fiduciary Before Fiduciary Was Cool
By Alan Wolper on
The entire securities world is anxiously awaiting the implementation of the fiduciary standard over retirement accounts, and, by most accounts, the eventual spread of that standard to ordinary investment accounts. I am not prepared to argue that this is not a big deal, and will cost the industry a ton of time and money to…
The Long Arm Of The Law Has Nothing On FINRA’s Reach
By Alan Wolper on
So, you’re a registered rep, working for a broker-dealer. Necessarily, you are registered with and subject to the oversight of FINRA, not a particularly happy proposition. But at least you can take comfort in the fact that while FINRA may have the right to stick its nose into your securities business, what you do away…
Altering Documents In A FINRA Arbitration Can Have Consequences That Go Well Beyond The Arbitration Itself…At Least For Respondents
By Alan Wolper on
The FINRA investigative process and the arbitration process exist side-by-side; at times, the misconduct that is alleged by a claimant in a Statement of Claim may simultaneously be the subject of an examination by Member Regulation, or even an Enforcement Complaint. Ordinarily, Enforcement doesn’t pay much attention to what happens in a parallel arbitration, except…
Updates: Two Losers + One Positive Note = A Bad Week For Broker-Dealers
By Alan Wolper on
There have been some developments this week in a few matters on which I have previously offered my views. To help you stay on the cutting edge of financial world current events as you mingle at your upcoming Cinco de Mayo fiestas, here are three updates. Two, not surprisingly, represent wins for the regulators. The…