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The billion dollar bewail: Citibank cannot recover $900 million inadvertently wired to lenders

In what most will find a shocking and unjust ruling, on February 16, 2021, Judge Furman of the United States District Court for the Southern District of New York ruled in In re Citibank August 11, 2020 Wire Transfers that...more

Regulators’ approach to enforcement – an international comparison

On July 9, 2019, the United Kingdom’s Financial Conduct Authority (FCA) published its latest Enforcement annual performance report for the year 2018/19. This follows the publication of its final FCA Mission: Approach to...more

Here’s looking at you, FINRA - the possible implications of “extraordinary cooperation” and Regulatory Notice 19-23 on...

In October 2005, we wrote an article titled “Cooperation, Only More So: What It Takes to Receive Credit for Cooperating with NASD.” The title came from a line in the movie Casablanca. In it, Rick (Humphrey Bogart) is asked...more

The SEC’s litigation against a firm for allegedly inadequate disclosure of shareholder service fees and 12b-1 fees

During the past several years, the US Securities and Exchange Commission (SEC) has settled more than a dozen cases where the SEC alleged (with the firms neither admitting nor denying the charges) that investment advisers...more

FinCEN, federal banking regulators push for private sector innovation in BSA/AML compliance

On December 3, 2018, the US Department of the Treasury’s Office of Terrorism and Financial Intelligence, the federal depository institutions regulators and the Financial Crimes Enforcement Network (FinCEN) (together, the...more

The other shoe has dropped – The SEC follows up with firms that didn’t self-report under the share class initiative

The Share Class Initiative - On February 12, 2018, the Division of Enforcement of the US Securities and Exchange Commission (SEC) announced the Share Class Selection Disclosure Initiative (Initiative), which informed SEC...more

SEC’s share class selection disclosure initiative: what’s next

On February 12, 2018, the Division of Enforcement of the US Securities and Exchange Commission (SEC) announced the Share Class Selection Disclosure Initiative (Initiative) to encourage SEC registered investment advisers...more

Sleuthing Through State Elder Financial Exploitation Laws - A Morass for Broker-Dealers

This legal alert is the first in a series addressing the ever-changing regulatory landscape relating to senior investors, state law, and a broker-dealer’s legal obligation, if any, to protect its vulnerable customers. We...more

Senior Investors Are the Focus of New “Principal Consideration” in FINRA Sanctions

On April 10, 2017, the Financial Industry Regulatory Authority’s (FINRA) National Adjudicatory Council (NAC) introduced new Sanction Guidelines (Guidelines) which allow the NAC and FINRA staff to take into consideration the...more

FINRA Is Ready to Lace-up and Focus on “Blocking and Tackling”: FINRA’s 2017 Priorities and Related Enforcement Actions

As the football season was winding down, on January 4, 2017, the Financial Industry Regulatory Authority (FINRA) published its 2017 Annual Regulatory and Examination Priorities Letter. According to FINRA President and CEO,...more

Is It Safe? Limits of “Safe Harbor” for Temporary Holds on Senior Investor Transactions Under Proposed FINRA Rule 2165

Introduction - In addition to the recent increase in regulatory focus on senior investors, earlier this fall, the Financial Industry Regulatory Authority (FINRA) filed a rulemaking proposal (the filing) with the...more

FINRA, SEC Renew Focus on Senior Investors in Immediate Aftermath of FINRA Submission of Proposed Rulemaking to SEC

Highlights from FINRA/SIFMA Senior Investor Conference - On October 22-23, members of the securities industry, academia, regulators, and public policy experts gathered in Washington, D.C., at the joint Financial...more

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