Not too long ago, a single, small BD experienced a bizarre combination of regulatory overzealousness and regulatory indifference, by the SEC and FINRA, respectively.  These things, sadly, happen all the time, but what happened to this unfortunate firm presents an…
Continue Reading A Sad Story Of Regulators Simultaneously Doing Too Much And Too Little

Sorry for the long period of radio silence, just been busy getting ready for the continuation of the longest arbitration I have ever worked on, now in the midst of week no. 6!  But thanks to Denise for this thoughtful…
Continue Reading Comparing Apples To Orange [Groves]: How The SEC Defines Digital Assets As Securities

I am certain that, by now, you have read the Robinhood AWC.  Here is a fascinating take on that settlement, and what it portends for the securities industry, as well as for FINRA, by Denise. – Alan

There’s no question…
Continue Reading FINRA Is Bearish On FinTech (For Now) With Its Record Fine Against Robinhood

There have been tons of cases where firms got in trouble – in AML trouble, which is one the worst kinds of trouble – for failing to be sufficiently on top of third-party wires, i.e., where a customer wires money…
Continue Reading Securities America SEC Settlement Raises Prospect Of New Supervisory Standard

Most securities regulations, by design, create a gray world where compliance is not crystal-clear, but, rather, subject to interpretation.  After all, what you think constitutes “reasonable” supervision and what FINRA or the SEC think is reasonable may very well be…
Continue Reading SEC Settlement Is A Wake-Up Call To Review Outdated Procedures

FINRA Enforcement has often been accused (again, admittedly, by me, and not too infrequently) of going after the “low-hanging fruit,” that is, taking the easy case when it presents itself.  Putting aside the question whether this observation is accurate or…
Continue Reading For FINRA, Unlike The SEC, Blaming The BD Always Seems To Be The Answer

The controller has been passed to a new team of players in Washington. New players prefer to hit the reset button and start a new game, not pick up where the prior player left off. We know how our new…
Continue Reading Gamification: Regulators Should Try The Investor Education Game