Motions to vacate an adverse arbitration award are rarely granted by courts. Indeed, that should come as no surprise to anyone inasmuch as the awards rendered at the conclusion of the arbitral process are explicitly designed to be “final.” As
Broker- Dealer Law Corner
Latest from Broker- Dealer Law Corner - Page 3
New Account Forms: As Evidence, They Can Be A Blessing Or A Curse
By Alan Wolper
I am fond of saying that, at least generally speaking, the most important document in a customer arbitration alleging unsuitable recommendations is the new account form. If the NAF is in good shape, i.e., it is accurate, it is complete,…
The Very Pricey Real Estate At The Intersection Of The Old Books-And-Records Rule And The New Reality Of How People Communicate
By Alan Wolper
Happy New Year! I hope you had an enjoyable holiday season. At least happier than that of JP Morgan Securities, which, right before Christmas, got to write checks to the SEC and the CFTC totaling $200 million. That’s a lot,…
SEC Settlement Proves That It’s Easy Enough For An IA To Get In Trouble Just For Doing Nothing
By Alan Wolper
My job frequently requires that I explain to someone – whether my client, an ALJ, an arbitration panel, even a regulator – the fundamental difference between a broker-dealer and an investment advisor. An IA operates pursuant to a fiduciary duty;…
Passing The Suitability Buck To The Customer Is Never A Good Strategy
By Alan Wolper
I continue to wade my way through a few months’ worth of cases, press releases, etc., looking for things that manage to catch my attention. I found this SEC settlement from the end of July involving Integral Financial, a BD…
Believe It Or Not: FINRA Wants To Be Your “Partner”
By Alan Wolper
I am still catching up on things that happened over the last couple of months, as I dig myself out of the hole created by (finally) completing a 39-day FINRA arbitration (SOC filed in 2014, hearing started in 2019). Truthfully,…
A Sad Story Of Regulators Simultaneously Doing Too Much And Too Little
By Alan Wolper
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…
Comparing Apples To Orange [Groves]: How The SEC Defines Digital Assets As Securities
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…
FINRA Is Bearish On FinTech (For Now) With Its Record Fine Against Robinhood
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…
Securities America SEC Settlement Raises Prospect Of New Supervisory Standard
By Alan Wolper
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…