Investment Adviser Regulation

The FINRA Board of Governors election results are in.  There were three vacancies among the 10 seats reserved for industry representatives:  one Large, one Mid-Size, and one Small Firm Governor.  John Thiel, head of Merrill Lynch Wealth Management, who ran unopposed, won the Large Firm Governor Seat.  Joe Romano, president of Romano Wealth Management, won

Later this month, on July 30th, FINRA will hold its annual meeting in Washington, D.C., during which it will conduct an election for three open seats on its Board of Governors.  On FINRA’s 24-member Board of Governors, Votethere are 10 seats that are reserved for industry representatives from small, medium and large firms.  Of those

Not too long ago, I tried a case that had, among other issues, the improper use of the advisor’s personal email account. That improper use serves as a valuable lesson of what can go wrong when you deviate from using the firm approved email.

The client emailed complaints about the handling of the account to

Recent SEC enforcement actions suggest that being a CCO is not all that it’s cracked up to be; the SEC recently sanctioned two CCOs. SEC Commissioner Gallagher’s dissents and his recent comments regarding those dissents have really framed the issue.

The SEC Rules only provide that an “adviser” must have and implement written supervisory procedures.

At the end of last month, the SEC provided a guidance update on cybersecurity for registered investment companies and registered investment advisors. This guidance is equally instructive for broker-dealers and registered representatives.
Cyber threats are numerous and ever changing with technology. The SEC provided the guidance to highlight the importance of having a robust cybersecurity

The Department of Labor delivered on a longstanding but controversial promise when it recently proposed a fiduciary duty rule for all brokers who work with retirement accounts. The primary purpose of the proposed rule is avoidance of conflicts of interest.

If the proposed rule becomes final in its current form, it will have the following

Cybersecurity is more than just a trending topic.  As hacks and leaks continue to be publicized, the Securities and Exchange Commission is stepping up its game and increasing its focus on cybersecurity compliance.

The SEC’s Office of Compliance and Inspections recently released an initial summary of their findings from their 2014 OCIE Cybersecurity Initiative

FINRA’s 2015 Regulatory and Examinations Priorities Letter provides guidance regarding areas of focus in the “Sales Practice” for this year.  Previously, we discussed the various sales products that FINRA will be monitoring this year; and yesterdayJosh Horn discussed FINRA’s recently adopted Supervision Rules that affect the Sales Practice.  This blog entry will

Earlier this month, FINRA released its 2015 Regulatory and Examinations Priorities Letter.  In the letter, FINRA lays out its 2015 priorities, which focus on three general areas: 1) Sales Practice; 2) Financial and Operational Priorities; and 3) Market Integrity.  This blog entry will discuss FINRA’s “Sales Practice” priority.

FINRA is focused on various sales