Securities Compliance Sentinel

Analysis of cutting-edge securities industry issues

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Ernest Badway

Latest from Securities Compliance Sentinel

Securities Compliance Sentinel

Josh Horn and Ernie Badway Host Webinar on Business Continuity Plans with NSCP

By Ernest Badway

April 3, 2020

We wanted to invite everyone to attend the below webinar: Ensuring Business Continuity During the Coronavirus Crisis Complimentary Webinar Thursday, April 9, 2020 | 2 p.m. ET Join Joshua Horn, Fox Rothschild LLP; Ernie Badway, Fox Rothschild LLP; and David Zack, R. Seelaus for an informative discussion of how companies in the securities industry should prepare to effectuate business continuity policies during times of crisis, with a particular focus on the coronavirus and responding…

Securities Compliance Sentinel

Reg BI and Form CRS Are More Important to the SEC Than the Pandemic

By Ernest Badway

April 3, 2020

Unfortunately, in a very short sighted move by the United States Securities and Exchange Commission, its Chairman Jay Clayton announced that the SEC would not extend the compliance date for Regulation BI and the use of Form CRS passed the deadline of June 30, 2020. Apparently, Chairman Clayton has not seen the recent Covid-19 numbers as well as the fact most broker-dealers have employees working from home. Instead, he stated that the SEC’s Office of…

Securities Compliance Sentinel

Business Interruption Insurance Redux

By Ernest Badway

April 1, 2020

A few weeks ago as this crisis began to take shape, we indicated it would be a good idea to dust off the old business interruption policies. In response to some queries, we wanted to add to our discussion. Regardless of anyone’s (including your insurance broker) belief, you should still make the claim on the policy. There are a number of factors at play, including, but not definitively, some form of government intervention to cover…

Securities Compliance Sentinel

Business Interruption Insurance Applies to Securities Firms: Start By Calling Counsel

By Ernest Badway

March 13, 2020

With the chaos of the past week– and it is going to get worse before better– firms should check on their insurance coverage. Most firms should check to see if there business interruption coverage is up to date. This is a critical component of their business operations. If things get worse and there are widespread shutdowns, most firms will need to look to these policies for coverage. Keep in mind that it may apply if…

Securities Compliance Sentinel

Coronavirus Reaches Pandemic Status: You Better Pull Out the Old Business Continuity Plan

By Ernest Badway

March 12, 2020

Let’s be honest, the only people usually concerned about business continuity plans (“BCP”) are compliance folks and the lawyers. In fact, many probably have not looked at their BCP since Hurricane Sandy. Well, you better dust it off (or dry it off, more accurately). FINRA has already provided notice regarding traders working at home. https://www.bloomberg.com/news/articles/2020-03-09/finra-concedes-virus-may-impact-wall-street-oversight-of-traders. Further, nearly everyone, who works at the SEC headquarters in Washington, D.C., has been sent home because a staff member…

Securities Compliance Sentinel

The Market Crashing = Litigation Explosion!

By Ernest Badway

March 9, 2020

Alas, the market crashes (nearly, 8% of its value today) and your 401k plan is devastated, but could it get worse? Of course, it could. Brokers and investment advisers as well as their employers should expect to see numerous arbitrations and lawsuits as a result of the market crash and volatility. As a result, brokers and investment advisers should take precautions now. Customer client files should be in order. That means, you have to make…

Securities Compliance Sentinel

YOU SHOULD ALWAYS USE YOUR FRIENDLY NEIGHBORHOOD BROKER-DEALER!

By Ernest Badway

October 7, 2019

Recently, a REIT sought to avoid using a broker-dealer in a distribution. Woe, onto those who seek to avoid the broker-dealer, especially when it leads to a SEC investigation and enforcement action. The REIT charged a 3% commission as part of its sales process, and used its website, social media, and radio ads. These commissions and marketing tactics violated Exchange Act Rule 3a4-1, and, as a result, the REIT was operating as a broker-dealer in violation of Section 15(a) of…

Securities Compliance Sentinel

Ernie Badway Quoted in FundFire

By Ernest Badway

October 2, 2019

Ernie Badway was quoted in FundFire regarding a recent lawsuit brought against the SEC concerning a FOIA request. https://www.fundfire.com/c/2532863/301753. The FOIA request had sought emails from the former SEC Enforcement Director and his correspondence with various news organizations.…

Securities Compliance Sentinel

Interesting Guidance from FINRA on Expungements

By Ernest Badway

September 12, 2019

FINRA has distributed a recording from a neutral workshop on expungement. It was enlightening and only reinforced the fact that it is very difficult for anyone to obtain an expungement. You can find the workshop at https://www.finra.org/arbitration-mediation/neutral-workshop-audio-and-video-files.…

Securities Compliance Sentinel

Ernest Badway to Speak at NSCP National Conference on Regulation BI

By Ernest Badway

September 3, 2019

Ernie Badway, the Chair of Fox Rothschild’s Securities Industry Group, will be speaking at the National Conference of the National Society of Compliance Professionals. Registration information may be found at: https://www.foxrothschild.com/ernest-e-badway/events/the-secs-challenging-new-guidance-on-the-solely-incidental-broker-exemption/…

Securities Compliance Sentinel

Analysis of cutting-edge securities industry issues

Blog Authors

Josh Horn and Ernie Badway Host Webinar on Business Continuity Plans with NSCP

Reg BI and Form CRS Are More Important to the SEC Than the Pandemic

Business Interruption Insurance Redux

Business Interruption Insurance Applies to Securities Firms: Start By Calling Counsel

Coronavirus Reaches Pandemic Status: You Better Pull Out the Old Business Continuity Plan

The Market Crashing = Litigation Explosion!

YOU SHOULD ALWAYS USE YOUR FRIENDLY NEIGHBORHOOD BROKER-DEALER!

Ernie Badway Quoted in FundFire

Interesting Guidance from FINRA on Expungements

Ernest Badway to Speak at NSCP National Conference on Regulation BI

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