Broker- Dealer Law Corner

Broker- Dealer Law Corner

Tag Archives: Wolper

Expungement: Already An “Extraordinary Measure,” FINRA Now Seeks To Make It Even Less Accessible

Posted in Arbitration, Expungement, FINRA
Expungement is a funny thing, and here’s why: for years, claimants’ counsel have complained loudly to FINRA that expungement was being granted too frequently, that legitimate customer complaints were disappearing from CRD, resulting in an unfair, sanitized representation of brokers’ records that put unsuspecting customers at risk.  As Andrew Stoltmann, PIABA’s president, put it so… Continue Reading

FINRA’S 2018 Exam Priorities Reflect Business As Usual

Posted in Annual Report, Cybersecurity, Disclosure, FINRA, Outside business activities
I would imagine that the point of FINRA releasing its list of exam priorities each year is to help firms who are actually going to be examined, by providing a glimpse into FINRA’s playbook so they can address, proactively, the issues they know FINRA will focus on. To be forewarned is to be forearmed, right? … Continue Reading

Can FINRA Deliver On A Promise To Provide Meaningful Relief To Compliance Departments?

Posted in Compliance, FINRA, Outside business activities, Rule 3270
As I have discussed before, there are some rule violations that are going to happen no matter what FINRA says about them, no matter how many Enforcement cases it brings, and no matter what BDs do to “detect and prevent” such violations. A prime example of such is outside business activities, or OBAs.  The rule… Continue Reading

FINRA In The News, And Not In A Good Way

Posted in FINRA
It has been said that there’s no such thing as bad publicity, but I wonder if FINRA feels that way after having been featured in a number of less-than-favorable, or at least curious, media stories over the last couple of weeks. First, two weeks ago, Bruce Kelly of Investment News ran a story with this headline: … Continue Reading

What Is FINRA’s Job?

Posted in Compliance, FINRA
A client of mine bought a BD, thereby requiring him to go through the CMA process. It was a very small firm, with fewer than ten registered reps.  He was a newly minted 24, so he had other, more experienced principals on board to handle all supervisory responsibilities.  His job, as outlined in the firm’s… Continue Reading

Dawn Bennett Redefines “Spirited Defense” In Her SEC Case

Posted in Administrative Proceedings, Defenses, Disciplinary Process, SEC
This one belongs in the “truth is stranger than fiction” category. By now, you are probably familiar with the exploits of Dawn Bennett, former hostess of her radio show, “Financial Myth Busting.” She was the one who the SEC permanently barred last year after she elected not to appear at her administrative hearing (after her… Continue Reading

FINRA’s Board Acts To Fix The Problem…That FINRA Created

Posted in Arbitration, Board of Governors, Enforcement, FINRA
So, as you undoubtedly recall, in its typical reactive approach to regulation, FINRA has expressed concern – after having concerns expressed to it by others (none of whom are actually from the securities industry, of course) – about (1) the high number of registered reps working in the industry with spotty disciplinary records, and (2)… Continue Reading

FINRA’s Annual Report: I Wish It Was Fake News

Posted in Annual Report, FINRA
This past week, FINRA very, very quietly released its Annual Report for 2016.  Too quietly, as they say in the movies.  No press release.  No press conference.  No media attention at all, hardly.  As President Trump just asked about State Election Commissioners who refused to respond to a request from his Election Fraud taskforce for… Continue Reading

What Else Is New? FINRA Skates Despite “Massive” Failure To Produce Documents

Posted in Discovery, Enforcement, FINRA, Rule 8210, Rule 9251, Uncategorized
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… Continue Reading

FINRA Provides The Blueprint For Monitoring Outside Business Activities

Posted in Disciplinary Process, Disclosure, Enforcement, FINRA, Outside business activities
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 to… Continue Reading