Archive

Enforcement Report Issued by State Securities Regulators Emphasize RIAs

The North American Securities Administrators Association (NASAA) recently released its Enforcement Report for 2012. A copy can be found here. NASAA is an association primarily comprised of state securities regulators. Through the association, its members engage in multi-state enforcement actions and other collaborative activities. NASAA’s Enforcement Section tracks trends…
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FINRA Exec Lays Out FINRA’s Enforcement Agenda

On October 24, 2012, Susan Axelrod (FINRA’s executive vice president, member regulation sales practice) spoke at PLI’s seminar for broker-dealer regulation and enforcement. Broker-dealers and registered representatives should take note because FINRA’s enforcement agenda was made clear. Issues of concern for FINRA include: Cyber Security FINRA has seen…
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FINRA Provides Guidance for Supervisory Review of Email

FINRA recently released an Acceptance, Waiver and Consent signed by Deutsche Bank Securities, Inc. (FINRA Matter No. 2010023096302). The AWC is instructive because it speaks to supervisory review of electronic correspondence and should be considered by broker-dealers when crafting a lexicon-based search system for electronic correspondence. Background Facts…
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Fidelity Wins Against Morgan Stanley in a Non-Protocol Solicitation Case

In Fidelity Brokerage Services LLC v. Morgan Stanley Smith Barney LLC and Brian Wilder(FINRA Arbitration No. 11-03937), a FINRA arbitration panel found against respondents and annexed a 25 page Arbitrators’ Report to the Award which excoriated respondents for misappropriation of trade secrets (Fidelity’s customer list) among other violations. The…
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FINRA Arbitrators Start Getting Tough With Discovery Abuses

Two recent FINRA arbitration awards highlight increased focus by FINRA arbitrators concerning discovery abuses by litigants. FINRA’s rules require cooperation of the parties in discovery (Rule 12505) and specifically empower the arbitrators to issue sanctions for lack of cooperation, failing to comply with the discovery rules, or frivolously…
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FINRA DISCIPLINARY ACTIONS – JUNE 2012 UPDATE

FINRA issued its summary of disciplinary actions reported for June 2012. Certain actions are noteworthy and are indicative of regulatory trends effecting broker-dealers and registered representatives. Herskovits PLLC comments on the following regulatory actions: Net Cap Violations Freedom Investors Corp. (CRD #23714, Brookfield, Wisconsin), Joel ReidBlumenschein (CRD #1372334,…
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