Header graphic for print
Securities Compliance Sentinel Analysis of cutting-edge securities industry issues

Tag Archives: madoff

Who Wants To Know Some Secrets About Dealing With Customer Complaints.

Posted in Compliance and Supervision, Public Customer Arbitrations, Registered Representatives

In a prior post, I discussed the traps that people fall into when it comes to email.  One of the areas of greatest concern for me when I defend brokers and investment advisors are the emails that are generated immediately after a complaint (particularly an informal one) is received. It goes without question that the… Continue Reading

Who Wants To Know Some Secrets About Email.

Posted in Compliance and Supervision, Financial Industry Trends

The recent news regarding members of the government and military should hammer home the importance behind a robust email review.  At the same time, these incidents reflect the importance of thinking before you press send. Over the last decade that I have been coaching financial advisors on risk avoidance techniques, issues surrounding email use have… Continue Reading


Posted in Hedge and Private Equity Funds, Investment Adviser Regulation, SEC Enforcement

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) issued a release directed to newly registered investment advisers (“RIAs”).  The release was a “hello” to these RIAs to make them aware of the National Exam Program (“NEP”) and explain the Presence Exams Initiative (“PEI”).  An RIA is “newly registered” if it registered with the SEC… Continue Reading

Who Wants To Know More Techniques To Uncover Fraud?

Posted in Broker-Dealer Regulation, Corporate Governance, Financial Industry Trends, FINRA Compliance, SEC Compliance

In previous blogs, I have noted the importance of focusing on certain types of troublesome activity and the use of outside business disclosure forms to unravel or prevent fraud. There are also a number of other techniques as part of the overall culture of compliance that you can use to prevent/uncover fraud.  In no particular… Continue Reading

RIAs Really Need to Be Careful When Using an Affiliated BD

Posted in Broker-Dealer Regulation, Compliance and Supervision, Investment Adviser Regulation, SEC Compliance, SEC Enforcement

Recently, a registered investment adviser and its principal had to pay approximately $500,000 in disgorgement and penalties when they used an affiliated broker-dealer to charge clients higher commission rates.  See http://www.sec.gov/litigation/admin/2012/34-68118.pdf The SEC found that the RIA and its principal, essentially, mislead their advisory clients by representing the clients were receiving a discount on commissions when the trades were placed through… Continue Reading

FINRA Steps Up for Those Member Firms Affected by Hurricane Sandy

Posted in Broker-Dealer Regulation, FINRA Compliance, FINRA Enforcement

Last week, FINRA issued FINRA RN 12-45 laying out several items members should consider in the aftermath of Hurricane Sandy. For example, FINRA suggested that member firms provide office space to those member firms affected by the Hurricane.  Further, member firms housed in temporary space would not need to make an application for a new branch location or have… Continue Reading

How To Spot A Ponzi Scheme

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

Ponzi schemes seem to be more and more common over the last few years.  Whether the ponzi scheme is a multibillion dollar scheme, or a smaller scheme involving several thousand dollars, they all share certain common characteristics.  The most common characteristic among ponzi schemes is that they tend to show their investors relatively consistent gains,… Continue Reading