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Securities Compliance Sentinel Analysis of cutting-edge securities industry issues

Category Archives: Raiding/Moving Firms

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Posted in Broker-Dealer Regulation, Raiding/Moving Firms, Registered Representatives

The SEC’s Division of Trading and Markets assured a broker-dealer that a retiring registered representative would not risk enforcement action if, after termination of  the employment, he or she received certain compensation from the firm without maintaining his or her status as a registered associated person.  See Packerland Brokerage Services, SEC No-Action Letter, avail. 3/18/13… Continue Reading

Is There Any Reason To Arbitrate Customer Complaints

Posted in Arbitration, Raiding/Moving Firms, Registered Representatives

On September 18, the SEC approved a FINRA proposal that essentially does away with the ability to have an industry arbitrator serve on your panel.  So the question becomes, why bother arbitrating customer complaints. Without an industry arbitrator on the panel, you have no choice but to hire an expert witness because there will be… Continue Reading

You Need To Be Careful When You Depart As A Broker With Confidential Information And Trade Secrets

Posted in Raiding/Moving Firms, Registered Representatives, Securities Litigation

Recently, a Texas appellate court upheld a common law prohibition against a former registered rep who had moved firms. The court indicated that this departing broker had a common law obligation to maintain confidential information from his prior employer.  See Institutional Securities Corporation, et al. v. Vernon J. Hood, III (December 12, 2012), http://judicialview.com/State-Cases/texas/Employment/Institutional-Securities-Corporation-v-Hood/22/568743.  In… Continue Reading

Moving Firms Maybe Getting More Difficult and Possibly Anti-Competitive?

Posted in Broker-Dealer Regulation, Financial Industry Trends, FINRA Compliance, Raiding/Moving Firms

The FINRA Board of Governors is considering implementing new rules that will require brokers to disclose their compensation when they move firms. In many respects, this will cause issues for those who move firms periodically to obtain bonuses and other compensation increases.  These brokers will be required to disclose to their clientele what their compensation package… Continue Reading