Archive

Morgan Stanley No Longer Bound by the Protocol for Broker Recruiting

In a move that could be categorized as ‘seismic,’ Morgan Stanley has decided to quit the Protocol for Broker Recruiting. Originated in 2004, the document created a methodology to engineer the departure of brokers from one firm to join another. Since then, it has protected departing brokers from litigation…
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SEC Enforcement Actions and Fines Plummet Under Trump

Much has been said about the Trump’s administration effect on the SEC’s regulatory activities. Now, hard data confirms what we all suspected: under Trump, the Securities Exchange Commission has brought fewer enforcement actions and reduced its financial sanctions. A new study by a Georgetown University professor, covering fiscal…
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Sandlapper Securities and CEO Trevor Gordon Named in FINRA Exorbitant Fees Complaint re: Saltwater Well Investments

FINRA recently filed a complaint against a South Carolina-headquartered broker-dealer that allegedly charged exorbitant fees in connection with saltwater disposal well investments. The defendant, Sandlapper Securities, is a mid-size firm that employs about 60 brokers across its 13 locations. According to FINRA, Sandlapper “participated in a fraudulent scheme…
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Former UBS Broker Wins $3 Million in Defamation Case

A FINRA arbitration panel has just awarded James L. Springer Jr.; a Sarasota investment adviser, $3 million in damages, to be paid by his former employer, UBS. Springer, who managed  $350 million in client assets during his 12 years with the company, claims UBS defamed him in a…
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SEC Enforcement Executive Vows to Protect Retail Investors and Address Cyber Related Misconduct

At a recent Securities Enforcement Forum in Washington DC, Stephanie Avakian, co-director of the SEC’s Division of Enforcement, discussed the agency’s future priorities. Avakian emphasized that the mission of the Enforcement Division, to protect investors, will remain unchanged, but she announced a slight shift in focus areas and…
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Have FINRA’s “Poor Investments” Affected its Members?

In a recent report, the Wall Street Journal said FINRA’s investments are underperforming. The self-regulatory organization boasts a $1 billion yearly budget, and it easily collects over $100 million per year through the imposition of fines. According to WSJ journalists, throughout its existence, FINRA’s $1.6 billion investment portfolio…
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