As the year winds down to an end, financial advisors should be mindful of next year and the years to come. Now is as good a time as any to make sure that you know your customer. The year-end gives you a unique opportunity to get in front of your clients and revisit the year… Continue Reading
FINRA recently warned that firms could face disciplinary action if they enter into settlement agreements that bar customers or former employees from reporting wrongdoing at the firm. Although FINRA recognized that confidentiality provisions were acceptable, it noted that they have to be written in such a way to authorize the individual to contact FINRA or… Continue Reading
At the halfway point of the year, the Sutherland Asbill firm has issued its report on FINRA’s fines to date. That report reflects that, although fines are on a record pace this year, the number of actions by FINRA is behind pace. So what does this mean? The first step is to look at the… Continue Reading
FINRA recently put into place the highly publicized prohibition of making a settlement contingent upon a registered representative having the subject arbitration expunged from the representatives U-4. Is this a good thing? The claimants’ bar thinks this is a good thing because it will prevent bad apples from having their records cleaned. This position seems… Continue Reading
In an Investment News article written by Mark Schoeff, he reported that the push for a uniform fiduciary standard for broker-dealers and investment advisors has become a bit stagnant. In fact, it was reported that the prospects for such a uniform rules have waned over the years notwithstanding the general consensus that there should be such a… Continue Reading
SEC Chair Mary Jo White recently announced a broad program to get high frequency trading under control. Under the plan, entities that engaged in high frequency trading will have to register with the SEC. The rationale for this new plan is to promote greater transparency in the markets. The SEC’s agenda could ultimately impact the… Continue Reading
I recently blogged about the pervasive nature of data breaches and the particular risks presented to this industry. Many firms may think that they are secure because they used a vendor to build a secure environment, but history tells us that is not the case. Cyber-attacks do not always come from a direct hit, but… Continue Reading
Suspicious Activity Reports (SARs) have been a useful tool for financial institutions to report financial fraud while, at the same time, prohibiting the reporting institution from disclosing the existence of a SARs in response to a third-party request. In 2010, the Financial Crimes Enforcement Network (FinCEN), amended this regulation to extend the prohibition against disclosure… Continue Reading
The Securities and Exchange Commission Division of Trading and Markets is continuing to focus on broker-dealer registration issues in the private fund area. For example, the Staff is focusing on private fund advisers receiving transaction-based compensation for purported investment banking or other broker activities relating to one or more of the funds’ portfolio companies. The… Continue Reading
FINRA is beginning investigations into private placements. New FINRA Rule 5123 requires member firms involved in a private stock offerings to provide investors with detailed information on the transaction prior to the sale, and to file that information with FIRNA within 15 days after the first sale. The rule went into effect in December 2012…. Continue Reading
The dog-days of summer certainly did not apply to FINRA when it initiated eight disciplinary proceedings against member firms and registered representatives over private placements. This heightened interest should serve as a warning to all broker-dealers to ensure that their house is in order before permitting private placements through the firm. Unfortunately, the regulatory scheme… Continue Reading
We want to congratulate our outstanding IP partners, Gerry Norton and Janet MacLeod, on being named “Life Sciences Stars” by LMG Life Sciences 2013. See http://emarketing.foxrothschild.com/rs/vm.ashx?ct=24F7661EDEE20AEDC1D089A5D1289611D4BE7BB3D38714DD4CF371647BF8D90DDD78031
As the host of IMPACT 2013 Venture Summit, Fox invites you or your clients in the technology, healthcare or early stage sectors to be a featured company during the Mid-Atlantic’s premiere venture capital conference. Featured companies receive the exclusive opportunity to deliver a 10-minute presentation to prominent investors. Past featured companies include The Neat Company,… Continue Reading
Ernie Badway, Co-Chair of Fox Rothschild’s Securities Industry and White Collar Groups, will be speaking at the ABA’s Internal Investigations Conference on Cybersecurity. For more information, click on http://www.foxrothschild.com/events/eventDetail.aspx?id=15032389098.
The head of Fox Rothschild’s IP practice and our partner, Gerry Norton, was recently quoted by NJBiz on the U.S. Supreme Court’s Myriad Genetics Inc. case. See http://www.njbiz.com/article/20130416/NJBIZ01/130419842/Genetics-case-has-huge-implications-for-NJ-biotech-industry. Gerry’s great analogy is priceless.
Fox Rothschild is proud to be the host sponsor of IMPACT 2013 Venture Summit – the most established venture summit in the Northeast. This year’s conference will be held October 22 and 23 at the Ritz-Carlton, Philadelphia and Crystal Tea Room. As the premiere event of the Philadelphia Alliance for Capital and Technologies (PACT), IMPACT… Continue Reading
No matter what you do to protect yourself, there are risks all around. Over the years that I have defended brokers, I have found that one of the greatest liability risk is the way in which brokers have managed their elderly clients. With the Baby Boomers advancing in age, brokers are bound to have a… Continue Reading
The SEC found out what it means to sit on its rights when the United State Supreme Court recently concluded that the SEC was untimely in its effort to seek civil penalties. The Supreme Court in Gabelli v. Securities and Exchange Commission ruled that the five year clock in which the SEC had to bring… Continue Reading
In two recent posts, I highlighted the problems with incomplete account opening documents and those signed in blank. Now that you know the problem, the important question to ask is how do you prevent the problem in the first place. A robust supervision program and a culture of compliance are a start, but not the… Continue Reading
In the category of shameless, self promotion, we just wanted to share with you that The Compliance Exchange has named Ernest Badway as someone ”Who Compliance Professionals Should Follow On Twitter in 2013.” http://compliancex.com/twitter-list/
So the initial shock of uncovering a fraud has subsided. What do you do now? Here are some steps to consider. First, preserve all relevant records in both hard and soft form. You may want one to hire an outside vendor that specializes in electronic discovery. These technicians possess special skills and resources that will… Continue Reading
Please join us in congratulating partner Jeffrey M. Pollock who was recently elected to The American Law Institute (ALI) – a nonprofit, independent organization dedicated to producing scholarly work that clarifies, modernizes and improves the law. New members are elected by current members and selected on a number of criteria, including high character and ability… Continue Reading
Our partner, Gerry Norton, Chair of Fox Rothschild’s IP department, was recently quoted in NJBiz. Gerry’s comments on this critical IP legal development are most insightful. See http://www.njbiz.com/article/20120816/NJBIZ01/120819888/-1/enews_dailyT2.
As regular readers know, we deal with some pretty wonky securities law issues here at the Securities Compliance Sentinel. It’s some serious stuff – sentinels are rarely irreverent fellows. Speaking of sentinels, attorney Bob Kohn filed a rather novel amicus brief in the Justice Department’s lawsuit against Apple and some book publishes which alleges price fixing… Continue Reading