Know Your Customer Guidebook

The short answer to this question is a very large, NO!

All too often in my defense of registered representative and investment advisors do I see a completed account application as the only indicia of the performance of a know your customer analysis.  From my perspective and years of experience, the account application is only

This question confronted a registered representative that we defended.  Unfortunately, he did not ask himself that question until the middle of trial.  You see, the registered representative never knew his six grade educated, retired doorman client could not read when he sold him a covered call investment strategy.

How can something so basic be missed? 

Over the years and, most certainly, since the passage of the Private Securities Litigation Reform Act, plaintiffs’ lawyers have used confidential witnesses in their pleadings. 

Plaintiffs’ lawyers, typically, do not name these witnesses in their complaints to avoid motions to dismiss and other legal actions.  However, over the last several years, court decisions have become increasingly critical of

We have previously blogged on changes in the arbitration process.  We have seen that commercial arbitration, and, in particular, the securities arbitration process, is undergoing a transformation.

The backdrop for these changes is related to the belief that many consider the increased cost in arbitration to be the of the Americanization of the process.  That means, a higher cost for

In a not so surprising development, the SEC announced that even SEC registered broker dealers may not act as a crowd funding intermediaries under the JOBS Act because the SEC has not adopted regulations. 

Crowd funding allows companies to finance new businesses by accepting and pooling donations of up to $1 million over the Internet if

In regular intervals, SEC Enforcement Director, Robert Khuzami as well as other agency officials, attend conventions and conferences, spouting off about the wonderful progress the SEC and other enforcement agencies have made over the preceeding year. 

In particular, the SEC has consistently defended its settlements before several courts despite the attacks it received from Judge Rakoff.  Further, the SEC changed to

In a speech by SEC Commissioner Elisse B. Walter, the SEC, apparently, is indicating a significant shift in its view of cross-border cooperation. 

Over many years, the SEC has been viewed as the nearly primary global regulator of the securities markets.  Although this sentiment is not always shared by our brethren overseas, it has been, frankly, a

We have not talked about the Sarbanes-Oxley Act in sometime, so let’s jump right in!! 

Interestingly, over the last 10 years since Sarbanes-Oxley became effective, audit costs for public and private companies have increased significantly.  We recently came across a survey published by Financial Executives International, indicating, that these fees increased somewhat over the last 10 years. 

The SEC’s Chief Accountant announced that a number of companies may be unaware they fall under the disclosure requirement for Emerging Growth Company status under the JOBS Act. 

As a result of this status, the JOBS Act requires these companies to disclose such a status in their public filings with the SEC.  This disclosure and the resulting status