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Broker- Dealer Law Corner

All-Public Arbitration Panels Are Paying Out Money At An Unprecedented Rate…Just As PIABA Intended

By Alan Wolper on August 16, 2019

I read an article this week in Investment News with the following headline: “Brokerage Customers Winning More FINRA Arbitration Cases.” As a guy who defends customer cases, I was naturally intriguied by this. According to the article, “brokerage customers who do file claims against their registered representative or firm are faring better in the process this year. So far in 2019, 176 cases have been decided, and 44%, or 78 cases, resulted in the customer…

Broker- Dealer Law Corner

Big Firms Paying Big Fines: A Discussion Of Two FINRA Settlements

By Alan Wolper on July 31, 2019

What is it with big firms and fingerprints? You may recall back in October 2017, J.P. Morgan entered into an AWC with FINRA in which it agreed to pay a $1.25 million fine for the following, as described in FINRA’s press release about the case: FINRA found that for more than eight years, J.P. Morgan did not fingerprint approximately 2,000 of its non-registered associated persons in a timely manner, preventing the firm from determining whether those…

Broker- Dealer Law Corner

Why Is FINRA So Interested In Your Non-Securities Business?

By Alan Wolper on July 23, 2019

Rightly or wrongly, I don’t know much about cryptocurrencies or digital coins. But that’s ok. What is worrisome, on the other hand, is that I am increasingly concerned that FINRA doesn’t either. And while my own ignorance will have exactly zero impact on your day, that is most certainly not the case with FINRA. I came to this conclusion after reading Reg Notice 19-24, released last week. On its face, the Notice seems fairly…

Broker- Dealer Law Corner

Make No Mistake, PIABA Cares About One Thing: Getting Paid

By Alan Wolper on July 11, 2019

If you read this blog even semi-regularly, you know that I have taken a few shots at PIABA. I think they’re well earned, but some people – particularly PIABA lawyers, not surprisingly – have suggested that I’m overdoing it. Well, if you ever had any doubt that the motivation behind pretty much everything that PIABA does is simply doing whatever it can to ensure that its attorneys get paid, just take a look at PIABA’s …

Broker- Dealer Law Corner

A Glaring Example Of FINRA Dragging Its Feet, Culminating In A Pointless Default Decision

By Alan Wolper on July 1, 2019

FINRA loves to tout its supposed intent to bring meaningful cases, cases that matter to the investing public, rather than enforcing “foot faults,” as it has been accused of doing over the years. My own experience with FINRA suggests that while it talks a big game, in reality, we all still live in foot-fault city. I stumbled across this decision recently, and it serves as a good example of two problems that FINRA has. First,…

Broker- Dealer Law Corner

Implicit Recommendations To Hold: FINRA’s Suitability Rule Goes Toe-To-Toe With SEC’s Regulation BI

By Alan Wolper on June 25, 2019

Nearly ten years ago, FINRA decided to update its old suitability rule, NASD Rule 2310. It had been around a long time, and while it seemed to work fine, FINRA decided to incorporate into the new amended rule – FINRA Rule 2111 – some new concepts. One such concept concerned recommendations to hold. Under the old rule, only recommendations to purchase, sell or exchange a security had to be suitable. Under the new rule, FINRA…

Broker- Dealer Law Corner

A Fish Out Of Water? A Futures Clearing Firm In A FINRA Arbitration

By Ken Berg on June 18, 2019

I am fortunate to have Ken Berg, a commodities regulatory guru, just down the hall from me, so I’ve never had to learn that stuff too well. But, here, as you will see, there can be considerable overlap between the securities and the commodities regulatory regimes. The decision that Ken writes about arose in the context of a commodities purchase, but it may have a significant impact on securities arbitrations. It makes good reading, therefore, even for…

Broker- Dealer Law Corner

FINRA Touts The Fact That Its Examinations Need Not Be “Fair”

By Alan Wolper on May 31, 2019

While I feel I have enjoyed as much success defending respondents in FINRA Enforcement matters as anyone, I am still careful to caution clients who are unwilling to consider any settlement that going toe-to-toe with FINRA at a hearing is always a difficult proposition, even though they are presumed innocent and FINRA bears the burden of proof. No matter the facts, no matter the allegations, magically, decisions by the Hearing Officer, and by the panel…

Broker- Dealer Law Corner

Do Customers Actually Use BrokerCheck? This FINRA Complaint Suggests They Don’t

By Chris Seps on May 28, 2019

I heartily endorse this post from my colleague, Chris, who’s been quiet of late. It says a lot about FINRA, in terms of how it deigns to spend your assessment money, how fairness in the Enforcement process can be completely illusory, and how it is consistently unable to convince much of the investing public that it is serving any real function. – Alan FINRA’s mission is “investor protection.” In furtherance of that goal, FINRA has devoted significant…

Broker- Dealer Law Corner

FINRA Proposes To Dispense With Due Process, All Because It’s Failed To Do Its Job Of Policing The Markets

By Alan Wolper on May 7, 2019

Reading Reg Notice 19-17 makes me think of the legal arguments that I’ve recently read regarding whether a president can be found guilty of obstructing justice if the actions in question were taken out in the open, for everyone to see. Here, FINRA’s proposed power grab is simply outrageous, but, you got to give them credit, it is certainly being done right out there for everyone to see. It doesn’t make it right, however, no…

Ulmer & Berne LLP

Ulmer & Berne LLP Blogs

Blog Authors

All-Public Arbitration Panels Are Paying Out Money At An Unprecedented Rate…Just As PIABA Intended

Big Firms Paying Big Fines: A Discussion Of Two FINRA Settlements

Why Is FINRA So Interested In Your Non-Securities Business?

Make No Mistake, PIABA Cares About One Thing: Getting Paid

A Glaring Example Of FINRA Dragging Its Feet, Culminating In A Pointless Default Decision

Implicit Recommendations To Hold: FINRA’s Suitability Rule Goes Toe-To-Toe With SEC’s Regulation BI

A Fish Out Of Water? A Futures Clearing Firm In A FINRA Arbitration

FINRA Touts The Fact That Its Examinations Need Not Be “Fair”

Do Customers Actually Use BrokerCheck? This FINRA Complaint Suggests They Don’t

FINRA Proposes To Dispense With Due Process, All Because It’s Failed To Do Its Job Of Policing The Markets

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