Well hello again, and Happy Valentine’s Day! Sorry for the long hiatus, but glad to be back with this piece from Nathan, who is too modest to call himself Mr. Crypto…but if the shoe fits…. Not saying I always understand
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The High Price Of Fighting – And Beating – The SEC Can Make Settling An Acceptable Solution
When I am engaged to defend a case, whether it’s a customer arbitration or a regulatory complaint, my clients typically get to the point, sooner or later, where they ask me two questions: (1) what do I think about their…
FINRA’s First Reg BI Enforcement Action Stuns Industry With Its Adoption Of A Standard Of Conduct That . . . Is Exactly Like The Old Standard
So, after all the hubbub about how Reg BI was going to turn the brokerage industry on its head, given the new standard of conduct – more like that of a fiduciary – that it was imposing on BDs and…
Time Never Matters To Regulators, Until It Does
As the song goes, time keeps on slipping, slipping, slipping into the future. While Steve Miller may not have had FINRA and the SEC in mind when he wrote that lyric, the shoe certainly fits. Because here’s the thing about…
So You Received A Rule 4111 Letter From FINRA Informing You That You’re Presumptively A “Restricted Firm.” Now What??
It’s always exciting to watch something that you just know will be deemed by later generations to be an historic event. I mean, I distinctly remember watching Neil Armstrong on TV taking his first steps on the moon, or the…
Determining Chief Compliance Officer Liability Isn’t Really That Confounding
About a month ago, the SEC announced a settlement in a modest little case that has, nevertheless, managed to garner a lot of attention. This is a result of the fact that one of the respondents was the CCO, i.e.,…
Equitable’s Settlement With The SEC Demonstrates That A Single Customer Complaint Can Serve As Notice Of A Systemic Issue
Last week I posted a blog about the dangers of not heeding findings made during a regulatory exam, at least findings of clear, undisputable compliance issues that cannot be meaningfully defended. Today I am writing to highlight a corollary rule:…
Barclays AWC Teaches Important Lessons About The Price To Pay For Not Heeding Exam Findings
There is no question in my mind that the quality of FINRA examiners is a bit uneven. Some are smart and insightful and helpful; others are, well, not. Most of the time, they do know what they’re talking about. That…
When It Comes To GPB, FINRA Looks At Things Quite Differently Than The SEC And The DOJ
Among the criticisms I have leveled against FINRA are (1) that it is increasingly acting like a claimant’s arbitration attorney, by taking every possible opportunity to blame member firms for losses incurred by investors when other palpable reasons for those…
The 411 On FINRA Rule 4111
Well, Memorial Day is just past us, so we all know what that means: it’s time for FINRA to conduct its first annual assessment of its member firms to determine whether they should be branded a “Restricted” firm under new…