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Cady Bar the Door Insight & Commentary on SEC Enforcement Actions and Related Issues

Category Archives: FINRA

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How’s Your BCP?

Posted in Broker-Dealers, FINRA

Last week, staff at the SEC, CFTC, and FINRA drew some lessons from Hurricane Sandy and warned broker-dealers and other firms to take steps to prepare themselves for natural disasters that could disrupt their operations.  As government regulators do, they sprinkled in some abbreviations, so if you have a significant market presence, you should get… Continue Reading

Lenny Dykstra Is Open for Business!

Posted in Broker-Dealers, FINRA

On Dealbreaker last week, Bess Levin hilariously reported former baseball player Lenny Dykstra’s release from a California prison after his guilty plea and sentencing for three felony counts – bankruptcy fraud, concealment of assets, and money laundering.  As Levin noted, with his new free time, Dykstra might be available to weigh in on your investment… Continue Reading

Stories Worth Reading This Morning

Posted in Broker-Dealers, FCPA, FINRA

Among the stories you should consider reading today: FINRA’s Susan Axelrod announced at a PLI panel on Wednesday that FINRA is reviewing conflicts of interest at 14 broker-dealers.  The review seems to be geared toward being sure that registered representatives keep their focus on suitability of the products sold to their customers. This article suggests… Continue Reading

NASAA Identifies Top Broker-Dealer Compliance Violations and Best Practices

Posted in Broker-Dealers, FINRA

On Sunday, the North American Securities Administrators Association released its list of broker-dealer compliance violations and best practices to avoid those violations.  The list is based on a compilation of 236 examinations by state securities examiners from 24 jurisdictions around the United States.  The exams were conducted in the first half of 2012 under the… Continue Reading

FINRA Reminds World about Global Research Settlement

Posted in Broker-Dealers, FINRA

Remember the Global Research Settlement?  It has been somewhat in the news recently.  You might recall that it involved ten huge banks and the, uh, symbiotic relationship between those banks’ research and investment banking arms.  The pattern that had developed worked like this:  equity analysts published favorable coverage of a publicly traded company’s stock, and… Continue Reading

FINRA Expels Biremis Corp. for Anti-Money Laundering Abuses

Posted in Broker-Dealers, FINRA, Non-scienter-based Violations

On July 30th, FINRA expelled broker-dealer Biremis Corporation and permanently barred Biremis’s CEO, Peter Beck, from association with any FINRA member firm in any capacity.  FINRA found Biremis and Beck liable for a host of violations.  FINRA alleged that among other things, Biremis failed to implement an adequate anti-money laundering (“AML”) program, failed to maintain… Continue Reading

3½ Thoughts about the Consolidated Audit Trail

Posted in Broker-Dealers, FINRA, Insider Trading, SEC Structure

On July 11th, the SEC adopted Rule 613, a rule that requires national securities exchanges and FINRA “to jointly submit a comprehensive plan detailing how they would develop, implement, and maintain a consolidated audit trail that must collect and accurately identify every order, cancellation, modification, and trade execution for all exchange-listed equities and equity options… Continue Reading

FINRA Arbitrations Can Be Traps for the Unwary

Posted in Arbitrations, FINRA

Are you considering invoking FINRA’s arbitration process to seek redress for wrongs done by or to a broker-dealer?  Be careful, because you might be biting off a bit more than you can chew.  Two recent cases – one a FINRA arbitration award, the other a Fourth Circuit affirmance of a FINRA arbitration award – tell… Continue Reading