Self-Regulatory Organizations (SROs)

robber.jpgMy partner, Ernest Badway, recently blogged about the dangers of a lawyer referring a client to a rogue stockbroker.  The question for the broker-dealer/investment advisors is how do you uncover rogue brokers or prevent them from infecting your firm.

In all of the years that I have defended broker-dealers and investment advisors in cases

Ever since Dodd-Frank, there has been much concern in the RIA world regarding who would be its regulator.  At this point, RIAs can dispense with any concern that FINRA will be its regulator because FINRA pulled its hat out of the oversight ring, at least for now.

buyholdsell.jpg

Even thought FINRA spent nearly $2 million lobbying Congress

One of the more anticipated and debated outgrowths of the Dodd-Frank Act was the designation of a self-regulatory organization responsible for investment advisers.  Yet, it has recently been reported that this issue is dead for the current Congressional session, although likely to come back again.

The only consensus thus far is that the SEC is

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

We wanted to share with you a great article co-authored y one of our partners, Alain Leibman, along with our colleague, Jana Volante.  The article’s title is “Attacking Eyewitness Identification Testimony, in BNA’s Criminal Law Reporter, and is located at http://www.foxrothschild.com/newspubs/newspubsArticle.aspx?id=4294971709.

Alain also composed an ensemble piece in the ABA’s journal called, Litigation, and that peice is located