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Broker- Dealer Law Corner

Dog Bites Man: FINRA’s Proposed Amendments To Code Of Arbitration Procedure Put Customers’ Interests Ahead Of Members’

By Alan Wolper

November 8, 2019

In December, Ulmer & Berne is hosting four financial services webcasts, the first of which I will be presenting along with my partner, Michael Gross: FINRA 2019: A Look Back, and Thoughts About What Lies Ahead (Wednesday, December 04, 2019, 2:00 PM EST). The others are The Anatomy of a Whistleblower Action: Procedure, Practice Pointers, and Avoiding Pitfalls (Thursday, December 05, 2019, 2:00 PM EST); Hot Topics in SEC Regulation and Enforcement (Wednesday, December 11,…

Broker- Dealer Law Corner

PIABA’s Anti-Expungement Tirade Is Predictably Short On Facts

By Alan Wolper

October 22, 2019

Here is how PIABA’s one-track mind operates: in a Report it just issued, PIABA laments the frequency with which registered reps are able to get customer complaints expunged from their records. The sole reason for this, PIABA concludes, is that the expungement process is broken, and/or is being gamed by brokers. It does not even enter the realm of possibility for PIABA that the real reason arbitrators are receptive to requests for expungement – arbitrators…

Broker- Dealer Law Corner

FINRA’s Secret Power To Control Information

By Alan Wolper

October 9, 2019

In the past week, I ran across two discrete instances in which FINRA acts as a secret gatekeeper of sorts, exercising its own subjective judgment, without anyone knowing what, exactly, it is doing or why, employing unarticulated standards, and without providing any avenue for redress. And I find that really frightening. The first involves CRD, which, although it is nothing more than a database of information, is a weird place. Over the years, it seems…

Broker- Dealer Law Corner

FINRA’s Latest Statistical Snapshot Shows Continued Decimation Of Small BDs

By Alan Wolper

October 4, 2019

Last year, for the first time, FINRA produced a statistical report designed to provide some perspective on the firms that comprise its membership. I blogged about it, and concluded at the time that the report basically demonstrated the following: FINRA is still mostly composed of small firms But the number of those firms, and the influence they wield on FINRA’s direction, continues to diminish If the trend continues, the landscape for broker-dealers will no…

Broker- Dealer Law Corner

“The Opinions Offered Today Are Mine Alone And Do Not Represent The Commission” — A Summary Of Recent Remarks From SEC And CFTC Officials

By Alan Wolper

September 27, 2019

Selflessly, Blaine Doyle recently attended a presentation here in Chicago by the SEC and CFTC, so you didn’t have to do it yourself. Here is his recount of the highlights. – Alan Anyone who has sat through a talk by financial regulators is undoubtedly familiar with the refrain from the individuals that they do not speak for the Commission and that the opinions offered are their own. Even with that disclosure (and they ALWAYS make…

Broker- Dealer Law Corner

TD Ameritrade Latest Victim Of Head-Scratching Arbitration Award

By Alan Wolper

September 24, 2019

I was catching up on my reading and came across a column in Investment News by Mark Schoeff that described the results of a recent FINRA arbitration, results which I found a bit alarming. I caution you: reading too much into any arbitration award can be dangerous and/or foolhardy since they don’t always follow – or, occasionally, even slightly resemble – the rule of law. Indeed, screwy arbitration awards abound, and sometimes all you can…

Broker- Dealer Law Corner

It Is Not Possible To Predict When FINRA Will Charge Something As Willful. Or Is It?

By Alan Wolper

September 20, 2019

I have written a few times about FINRA’s ceaseless interest in bringing cases against registered reps who fail to update their Form U-4 in a timely manner to disclose the fact that a tax lien has been filed against them. Or several tax liens. The problem with these cases is not so much the sanctions that FINRA imposes, as they tend to be fairly modest, e.g., a fine of $5,000 or less plus a suspension,…

Broker- Dealer Law Corner

Two (More) Scary Tales Of FINRA’s Abuse Of Rule 8210

By Alan Wolper

August 30, 2019

Once again – twice again, actually – FINRA has used Rule 8210 as a cudgel, beating the poor unfortunate recipients of the “request” for documents and information into submission, or worse. This has got to stop. The first case is a repeat of one I blogged about earlier this year, and it involves the use of 8210 to demand that a computer be produced to FINRA so it can make a complete copy of…

Broker- Dealer Law Corner

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

By Alan Wolper

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

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…

Ulmer & Berne LLP

Ulmer & Berne LLP Blogs

Blog Authors

Dog Bites Man: FINRA’s Proposed Amendments To Code Of Arbitration Procedure Put Customers’ Interests Ahead Of Members’

PIABA’s Anti-Expungement Tirade Is Predictably Short On Facts

FINRA’s Secret Power To Control Information

FINRA’s Latest Statistical Snapshot Shows Continued Decimation Of Small BDs

“The Opinions Offered Today Are Mine Alone And Do Not Represent The Commission” — A Summary Of Recent Remarks From SEC And CFTC Officials

TD Ameritrade Latest Victim Of Head-Scratching Arbitration Award

It Is Not Possible To Predict When FINRA Will Charge Something As Willful. Or Is It?

Two (More) Scary Tales Of FINRA’s Abuse Of Rule 8210

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

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