A firm faced with a regulatory investigation should hire outside counsel to bring objective analysis to the situation. Although it may seem simple, the question that must first be addressed is who the lawyer represents. If the firm itself is the subject of the inquiry, then the firm needs representation. However, that same lawyer should… Continue Reading
The SEC has been much more aggressive in policing a company’s internal investigations. There has been a direct causal relationship to the SEC’s increased use of whistleblowers and its focus on a companies’ use of internal investigations. We have seen that the SEC probably knows more about the matter before it begins its official inquiry or contacts the… Continue Reading
The SEC, recently, sued a private equity fund adviser for, among other things, allegedly violating Investment Advisers Act of 1940 Rule 206(4)-7, for failing to have procedures requiring verification of client signatures and instructions by a second person. See http://www.sec.gov/litigation/complaints/2012/comp-pr2012-244.pdf. The SEC stated that the RIA and its principal made certain unauthorized transactions and used… Continue Reading
Never, under any circumstances, should you have your client sign an account opening document in blank, for you to complete at some later time. To most of you, this is not much of a secret, but I have seen it enough in my practice of defending brokers to know that it happens all too often…. Continue Reading
In our hyper-fast world, financial advisors, like many in the service sector, have become lazy. Let me be clear, I think financial advisors are working harder than ever to service their clients in these challenging times for which they should be commended. The laziness to which I refer is that I see financial advisors taking… Continue Reading
The Second Circuit ruled that the First Amendment trumps the federal government’s enforcement off-label marketing prohibitions. The decision could change the face of pharmaceutical compliance and limit criminal, regulatory, and civil exposure to government and private plaintiffs.