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
Wolper
How The Fiduciary Rule May Impact Outside Business Activities
By UB Greensfelder on
Because fixed annuities and fixed life insurance are not securities, many broker-dealers treat the sales of these products by their registered reps as outside business activities. In that event, there is no obligation by the BD to supervise those sales, and they can be run directly with the issuing company and not through the broker-dealer. …
Where’s The Beef? The SEC Complains That Filing A SAR Isn’t Enough If It Skimps On Details
By UB Greensfelder on
Many of my clients chafe at the AML rule, given the cost of compliance and the even higher cost of defending an Enforcement action if the regulators conclude that red flags were somehow missed, or spotted but not dealt with adequately, or soon enough, or both, or spotting the red flags, responding to them, but…
Does FINRA Give Credit For Self-Reporting Problems? It Says It Does, But….
By UB Greensfelder on
I read a fascinating piece the other day in BankInvestmentConsultant about FINRA’s Enforcement program, specifically about the notion of broker-dealers self-reporting problems, and whether that was a smart thing to do. Some of the quotes attributed to FINRA senior Enforcement management are really interesting, so I wanted to share them with you in the event…
Body-Slammed By FINRA, Twice In A Week
By UB Greensfelder on
Posted in Arbitration, Disciplinary Process, Enforcement, FINRA, PIABA, Rule 9555, Statutory Disqualification
I sometimes (well, perhaps frequently) use this blog as a vehicle to complain about certain things that FINRA does, or about certain of its rules, that I feel are just unfair, plain and simple. To show you that I am not simply making this up, I experienced two such events this past week, which I…
FINRA’s Board Continues To Bend In the Wind Of Criticisim
By UB Greensfelder on
Posted in Arbitration, Board of Governors, Enforcement, FINRA, PIABA, Registered Representative, Rogue rep, Rule 2010, Sanctions
On Wednesday, the FINRA Board met and discussed two topics that I recently blogged about: recidivist brokers and unpaid arbitration awards. In predictable fashion, FINRA withered in the face of criticism that its existing rules and policies are somehow not tough enough on its member firms, and embarked on a proposed series of steps…
Sticks And Stones May Break Your Bones, But Words Will Get You Barred
By UB Greensfelder on
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…
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…