Hillel Cohn

Firm/Organization: Morrison & Foerster LLP

Blogs: MoFo ReEnforcement: The Enforcement Blog, The BD/IA Regulator

Latest Articles

FINRA’s 2019 Risk Monitoring and Examination Priorities Letter Highlights Broker-Dealer Online Distribution Platform Activities

By Susan Gault-Brown, Hillel Cohn & Kelley Howes on January 28, 2019

FINRA recently published its 2019 Risk Monitoring and Examination Priorities Letter (“Priorities Letter”) highlighting topics upon which FINRA will focus in the coming year. Unlike letters in prior years, the Priorities Letter focuses primarily on areas that FINRA considers to be material new priorities. Of particular interest to the growing number of companies providing financial services through an online platform is the first materially new priority highlighted by FINRA in its Priorities Letter—online distribution platforms…

The BD/IA Regulator

Massachusetts Takes on Risky Broker-Dealers That Offer Private Placements

By Lloyd Harmetz & Hillel Cohn on July 5, 2018

On July 2, 2018, the State of Massachusetts announced that it was investigating 10 broker-dealers that have 15% or more of their agents with current disciplinary incidents and that offer private placements to individual investors. According to the announcement, the investigation arises in large measure due to a recent Wall Street Journal investigation into these types of firms, which targeted senior investors in particular. The Wall Street Journal’s article on the subject can be found at…

The BD/IA Regulator

SEC Proposes Simplified Relationship Summary for Broker-Dealers and Investment Advisers to Use with Retail Investors

By Kelley Howes, Hillel Cohn, Susan Gault-Brown & Lloyd Harmetz on May 2, 2018

In the third release comprising part of the package of proposed rules and forms related to broker-dealers’ and investment advisers’ standards of conduct, the SEC proposed a new disclosure document to be used by registered broker-dealers, registered investment advisers, and dual registrants. The new client relationship summary, or “Form CRS,” would provide certain basic disclosures to retail investors at the account opening stage. Form CRS would be an additive disclosure; it is not designed to…

The BD/IA Regulator

The SEC’s Standard of Conduct Proposals Would Raise the Bar on Investment Advisers

By Susan Gault-Brown, Hillel Cohn, Lloyd Harmetz & Kelley Howes on April 26, 2018

According to the SEC, its April 18, 2018 release proposing an interpretation of the standard of conduct for investment advisers is intended to “reaffirm – and in some cases clarify – certain aspects of the fiduciary duty that an investment adviser owes to its clients under section 206” of the Investment Advisers Act of 1940. As discussed in greater detail in this alert, however, the proposed interpretation, if adopted, appears to expand the parameters of…

The BD/IA Regulator

SEC Proposes a New Standard of Care for Broker-Dealers: Regulation Best Interest

By Hillel Cohn, Susan Gault-Brown, Lloyd Harmetz & Kelley Howes on April 24, 2018

On April 18, 2018, the SEC introduced new Regulation Best Interest for broker-dealers and their associated persons when dealing with retail customers. This alert provides background of broker-dealer regulation, an overview of Regulation Best Interest, and our take on what this means for broker-dealers going forward. This alert is one in a series of Client Alerts on recent SEC proposals regarding regulation of broker-dealers and investment advisers. Read our client alert.…

The BD/IA Regulator

First State Charges Broker-Dealer in Connection with Violations of DOL Fiduciary Rule

By Hillel Cohn, Dylan Naughton & Lloyd Harmetz on February 16, 2018

On February 15, 2018, the Enforcement Section of the Massachusetts Securities Division (the “Division”) of the Office of the Secretary of the Commonwealth charged a registered broker-dealer (the “Broker-Dealer”) that operated in Massachusetts with violating its own internal policies designed to ensure compliance with the U.S. Department of Labor’s (the “DOL”) Fiduciary Rule. The DOL Fiduciary Rule The DOL Fiduciary Rule significantly expands the scope of persons who will be deemed fiduciaries when dealing with…

MoFo ReEnforcement: The Enforcement Blog

First State Charges Broker-Dealer in Connection with Violations of DOL Fiduciary Rule

By Hillel Cohn & Lloyd Harmetz on February 16, 2018

The BD/IA Regulator

Understanding the Standard of Care for Broker-Dealers and the Department of Labor’s Fiduciary Rule

By Paul Borden, Hillel Cohn & Lloyd Harmetz on January 11, 2018

Until recently, broker-dealers operating in the United States weren’t subject to a fiduciary standard when dealing with their retail clients. The passage of the Dodd-Frank Act in 2010 included a provision enabling the Securities and Exchange Commission to consider and propose a higher standard of care for broker-dealers – something which it has not yet done but appears intent on pursuing this year. The Department of Labor (DOL) on its own adopted a fiduciary standard…

The BD/IA Regulator

The Fiduciary Rule Poll

By Hillel Cohn & Anna T. Pinedo on September 28, 2017

The US Department of Labor’s (DOL) fiduciary standard rule has been befuddling the financial services industry for the past seven years. In its simplest form, it increases accountability for the brokers, planners and insurance agents that handle US retirement accounts. It introduces measures to ensure they act in the best interest of their clients rather than for their own financial gain. And exactly what steps can be taken to best respond to the rule are…

The BD/IA Regulator

DOL Proposes to Defer Full Implementation of its Fiduciary Rule Until July 1, 2019

By Hillel Cohn on September 1, 2017

In April 2016, the U.S. Department of Labor (DOL) adopted a rule that significantly expands the category of persons deemed fiduciaries when providing investment recommendations to most retail retirement accounts (the “Fiduciary Rule”). On August 31, 2017, the DOL published a proposal to defer full implementation of the Fiduciary Rule until July 1, 2019.1 Persons deemed fiduciaries under this rule may not receive transaction-based compensation or engage in principal transactions with their retail retirement clients,…

Hillel Cohn

FINRA’s 2019 Risk Monitoring and Examination Priorities Letter Highlights Broker-Dealer Online Distribution Platform Activities

Massachusetts Takes on Risky Broker-Dealers That Offer Private Placements

SEC Proposes Simplified Relationship Summary for Broker-Dealers and Investment Advisers to Use with Retail Investors

The SEC’s Standard of Conduct Proposals Would Raise the Bar on Investment Advisers

SEC Proposes a New Standard of Care for Broker-Dealers: Regulation Best Interest

First State Charges Broker-Dealer in Connection with Violations of DOL Fiduciary Rule

First State Charges Broker-Dealer in Connection with Violations of DOL Fiduciary Rule

Understanding the Standard of Care for Broker-Dealers and the Department of Labor’s Fiduciary Rule

The Fiduciary Rule Poll

DOL Proposes to Defer Full Implementation of its Fiduciary Rule Until July 1, 2019

Company

Support

New to the Network