Latest Articles

This post was also written by Kiran Somashekara. The Financial Industry Regulatory Authority’s (FINRA’s) National Adjudicatory Council (NAC) released updated Sanction Guidelines on May 12, 2015, for use in adjudicating disciplinary proceedings involving FINRA member firms and associated brokers. The updated Sanction Guidelines provide for tougher sanctions for violations of FINRA rules. FINRA explained that the Guidelines “harmonize the Sanction Guidelines with the current state of the cases in this area,” but are not meant…
This post was written by Terence Healy and Daniel Herbst. On March 1, 2013, the Securities and Exchange Commission (“SEC”) published a sweeping request for comments that may determine whether a uniform fiduciary standard will be required for all broker-dealers and investment advisers providing services to retail customers. Under the present regime, registered investment advisers (“RIAs”) are subject to fiduciary duties of care to their customers under the Investment Advisers Act, while broker-dealers are…
This post was written by Terence Healy and Daniel Herbst. A recent ruling by a hearing panel of the Financial Industry Regulatory Authority (“FINRA”) could provide a path to effectively kill customer class actions against brokers. On February 21, a FINRA panel upheld an arbitration clause in a Charles Schwab and Co. customer agreement which requires all disputes be brought in a FINRA-run arbitration forum. FINRA does not allow class-action claims in its arbitration…