U.S. Financial Industry Regulatory Authority (FINRA)

The SEC recently completed the Dodd-Frank mandated study on financial literacy for retail investors and it revealed, not shockingly, an absence of basic financial literacy.  The study also found that it was important for retail customers to have a better appreciation of the costs associated with their investments, as well as conflicts of interest related

A few years ago, I defended a financial advisor over a bee sting. 

The customer wanted to take the cash value out of a life insurance policy to buy a second home.  The advisor cautioned against doing so before completing underwriting on a new policy.  The customer ignored this advice, contacted the company directly, and

There is a general sentiment that arbitrations favor the defense.  In fact, several years ago, there were several House and Senate bills supported by the trial lawyers that sought to amend the Federal Arbitration Act to end “forced” arbitrations.  In my experience, however, FINRA arbitrations may actually be making it easier for claimants to file

On August 24, 2012, FINRA filed a proposed rule change with the SEC relating to when industry parties seek the appearance of witnesses or the production of documents from FINRA members and individuals associated with the members.  The new rules would require arbitrators, unless the circumstances dictate otherwise, to issue an order directing the production

Recently, SEC Commissioner Daniel Gallagher stated that he was not in favor of allowing the Commission to retroactively impose a collateral bar.

Although there certain administrative proceedings have looked into this question, for example, In Re Lawton, where SEC Chief Administrative Law Judge Brenda Murray refused a retroactive application, there has been very little guidance

The SEC Enforcement Division’s chief accountant has gone on record as saying that, in every SEC accounting case, the SEC Staff reviews auditor conduct. 

The chief accountant stated that the SEC Staff looks at improper revenue recognition; understated expenses; financial crisis related accounting issues regarding loans and securities; as well as cross-boarder issues.  These reviews are done in conjunction

In its continuing enforcement onslaught on firms emanating from China, the SEC filed another action in the United States District Court for the Western District of Louisiana against a Chinese company. 

The SEC alleged that the company mislead investors regarding its value in a variety of press releases.  Further, the SEC claims that a number of

Recently, the SEC Enforcement Director was promoting the SEC’s successes, offering credit to the restructuring and hiring of securities specialists that he undertook. 

The Enforcement Director also indicated that the 37 cooperation agreements the SEC has agreed to have assisted the SEC in obtaining a wide variety of enforcement victories.  The Enforcement Director also suggested that the whistleblower

In its January 2011 study, the SEC recommended the enhancement of BrokerCheck, a resource available on FINRA’s web page for the public to review information pertaining to brokers, registered representatives and investment adviser representatives.  As part of its mission of protecting the investing public, this week, FINRA rolled out an enhanced BrokerCheck.

With these improvements