Broker-Dealer Compliance + Regulation

A View of EB-5 Program Issues from a Top SEC Enforcement Official

As participation in the U.S. Citizen and Immigration Services (USCIS) Immigrant Investor Program or “EB-5 program” grows, regulatory interest is showing a commensurate uptick. On November 20, 2013, Associate Director Stephen… more

Compliance, EB-5, Enforcement, Enforcement Actions, Immigrants

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Understanding the Standard of Care for Broker-Dealers and the Department of Labor’s Fiduciary Rule

Until recently, broker-dealers operating in the United States weren’t subject to a fiduciary standard when dealing with their retail clients. The passage of the Dodd-Frank Act in 2010 included a provision enabling the… more

Best Interest Contract Exemptions, Broker-Dealer, Department of Labor (DOL), Dodd-Frank, Fiduciary Rule

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SEC Launches Exam Initiative for Newly Registered Municipal Advisors

The SEC is not wasting any time making sure that newly registered municipal advisors are introduced to their regulator. On August 19, 2014, the SEC announced a two-year examination initiative for municipal advisors that… more

Financial Industry Regulatory Authority (FINRA), Municipal Advisers, OCIE, Registration, SEC Examination Priorities

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A Regulatory Reform Glossary

After the financial crisis, have you ever asked, “What does it all mean?” Now, we have an answer for you: MoFo’s Regulatory Reform Glossary. Since the great financial crisis, financial institutions have been… more

Basel III, Dodd-Frank, EMIR, Financial Regulatory Reform, MiFID

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Broker-Dealer Registration Issues Associated with Development Projects under the EB-5 Program

The EB-5 Immigrant Investor Program (the “EB-5 Program”) administered by the U.S. Citizenship and Immigration Service (USCIS) has been a significant source of capital for various real estate and other development projects… more

Broker-Dealer, Compliance, EB-5, Enforcement, Limited Partnerships

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Massachusetts Takes on Risky Broker-Dealers That Offer Private Placements

On July 2, 2018, the State of Massachusetts announced that it was investigating 10 broker-dealers that have 15% or more of their agents with current disciplinary incidents and that offer private placements to individual… more

Broker-Dealer, Investors, Private Placements

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2018: Business As (Un)usual – European Financial & Regulatory Developments into 2018

2017 in the UK and the rest of Europe seems to have been primarily a year devoted to implementation – both of political decisions already made and of legislation that had already been enacted. On the political front, Brexit… more

Bank Recovery and Resolution Directive (BRRD), Blockchain, Capital Markets, EMIR, EU

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FINRA Proposes Amendments to its New Debt Research Rule

On May 24, 2016, FINRA proposed amendments to its new debt research rule (Rule 2422). The amendments are intended to clarify Rule 2422 in four respects: (1) the consent requirement for institutional debt research reports… more

Debt, Debt Securities, Disclosure Requirements, Equity Research Rule, Financial Industry Regulatory Authority (FINRA)

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SEC to Broker-Dealers: More Oversight, Fewer Madoffs?

The Securities and Exchange Commission (SEC) published a Final Rule last week amending certain annual reporting, audit, and notification requirements for broker-dealers in the broker-dealer reporting rule (Rule 17a-5) and the… more

Audits, Bernie Madoff, Broker-Dealer, Dodd-Frank, Fraud

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FINRA Continues its Crackdown on Companies that Fail to Respond to Red Flags

FINRA continues to discipline broker-dealers that fail to detect and investigate so-called “red flags” of suspicious account activity. Yesterday, FINRA announced a $1 million fine against COR Clearing LLC (the “Firm”) – formerly… more

Anti-Money Laundering, Compliance, Enforcement Actions, Financial Industry Regulatory Authority (FINRA)

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A New SEC Enforcement Direction for 2014

Each year, the SEC puts on its most informative conference of the year: The SEC Speaks. During the course of the two-day conference, held this year on February 21 and 22, the Chair and each Commissioner, as well as the most… more

Enforcement, Securities and Exchange Commission (SEC)

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FINRA Asks Members: What Are You Doing with Digital Assets?

In a July 2018 regulatory notice, FINRA has requested that members notify it if they engage, or intend to engage, in any activities related to digital assets, such as cryptocurrencies. In addition, until July 31, 2019, FINRA… more

Digital Assets, Financial Industry Regulatory Authority (FINRA)

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2018: Business As (Un)usual – European Financial & Regulatory Developments into 2018

2017 in the UK and the rest of Europe seems to have been primarily a year devoted to implementation – both of political decisions already made and of legislation that had already been enacted. On the political front, Brexit… more

Bank Recovery and Resolution Directive (BRRD), Blockchain, Capital Markets, EMIR, EU

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Cybersecurity: SEC Is Starting to Scrutinize Registrants’ Practices

The SEC plans to examine the cybersecurity practices of over 50 registered broker-dealers and investment advisers. The SEC announced its plan in an April 15, 2014 Risk Alert, which closely follows the March 26 Cybersecurity… more

Cybersecurity, Data Protection, Investigations, Securities and Exchange Commission (SEC)

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Second Circuit Maintains Expansive View of Civil Liability for Insider Trading

On February 18, 2014, in SEC v. Contorinis, the Court of Appeals for the Second Circuit affirmed an order requiring Joseph Contorinis to personally disgorge more than $7 million in insider trading profits realized by a fund he… more

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CFTC Staff Issues Interpretation Regarding Position Limits Aggregation by Passive Investors in Commodity Pools

On May 2, 2018, staff of the Division of Market Oversight of the Commodity Futures Trading Commission (“CFTC”) issued an interpretation regarding CFTC Reg. 150.4(b)(1), 17 CFR 150.4(b)(1), which provides an exemption from the… more

CFTC, Commodity Pool, Institutional Investors

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FINRA Asks Members: What Are You Doing with Digital Assets?

In a July 2018 regulatory notice, FINRA has requested that members notify it if they engage, or intend to engage, in any activities related to digital assets, such as cryptocurrencies. In addition, until July 31, 2019, FINRA… more

Digital Assets, Financial Industry Regulatory Authority (FINRA)

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SEC Announces Settlements Resulting from the Share Class Selection Initiative

On March 11, 2019, the SEC announced settlements with 79 investment advisers who self-reported violations of the Investment Advisers Act of 1940 (the “Advisers Act”) in connection with the Division of Enforcement’s Share Class… more

Investment Adviser, Investment Advisers Act of 1940, Securities and Exchange Commission (SEC), Share Class Selection Disclosure Initiative (SCSD), Share Classes

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SEC Brings 13 Settled Enforcement Proceedings for Failure to File Form PF

On June 1, 2018 the SEC announced that it entered into settled enforcement proceedings with 13 registered investment advisers. According to the settled orders, the advisers failed to file and update Form PF over multi-year… more

Civil Monetary Penalty, Investment Adviser, Securities and Exchange Commission (SEC), Settlement

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Toke on This: FinCEN Issues Guidelines for Marijuana-Related Businesses

The Financial Crimes Enforcement Network (FinCEN) got a whiff of the fact that financial institutions provide services to burgeoning marijuana-related businesses and published guidance to clarify customer due diligence… more

Bank Secrecy Act, Controlled Substances Act, FinCEN, Marijuana, Money Laundering

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2018: Business As (Un)usual – European Financial & Regulatory Developments into 2018

2017 in the UK and the rest of Europe seems to have been primarily a year devoted to implementation – both of political decisions already made and of legislation that had already been enacted. On the political front, Brexit… more

Bank Recovery and Resolution Directive (BRRD), Blockchain, Capital Markets, EMIR, EU

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A Regulatory Reform Glossary

After the financial crisis, have you ever asked, “What does it all mean?” Now, we have an answer for you: MoFo’s Regulatory Reform Glossary. Since the great financial crisis, financial institutions have been… more

Basel III, Dodd-Frank, EMIR, Financial Regulatory Reform, MiFID

See all updates »

2018: Business As (Un)usual – European Financial & Regulatory Developments into 2018

2017 in the UK and the rest of Europe seems to have been primarily a year devoted to implementation – both of political decisions already made and of legislation that had already been enacted. On the political front, Brexit… more

Bank Recovery and Resolution Directive (BRRD), Blockchain, Capital Markets, EMIR, EU

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NASAA Adopts Model Act on the Prevention of Financial Exploitation of Vulnerable Adults

On January 22, 2016, the North American Securities Administrators Association (“NASAA”) adopted a model act, entitled “An Act to Protect Vulnerable Adults from Financial Exploitation.” This act seeks to facilitate coordination… more

Broker-Dealer, Elder Issues, Exploitation, Financial Abuse, Financial Industry Regulatory Authority (FINRA)

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JOBS Act Quick Start - A brief overview of the JOBS Act - 2014 Update

In This Issue: - Introduction - The IPO on-ramp - The IPO Process - Applying Title I to other transactions - Private offerings - Crowdfunding - Regulation A+ - Exchange Act… more

Crowdfunding, Dodd-Frank, Initial Public Offering (IPO), JOBS Act, Regulation A

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FINRA is Apparently Holding its CARDS

Broker-dealers appear to have succeeded, at least for now, in beating back FINRA’s proposal to capture extensive amounts of data through electronic means… more

Broker-Dealer, CARDS, Data Collection, Financial Industry Regulatory Authority (FINRA), SIFMA

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Understanding the Standard of Care for Broker-Dealers and the Department of Labor’s Fiduciary Rule

Until recently, broker-dealers operating in the United States weren’t subject to a fiduciary standard when dealing with their retail clients. The passage of the Dodd-Frank Act in 2010 included a provision enabling the… more

Best Interest Contract Exemptions, Broker-Dealer, Department of Labor (DOL), Dodd-Frank, Fiduciary Rule

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The Results Are In: Investors Favor Additional Regulatory Protection

On November 6, 2014, FINRA released results from a survey of U.S. investors measuring the demand for additional regulatory protections. The survey polled 1,000 adults and revealed that an overwhelming majority felt that it was… more

Financial Industry Regulatory Authority (FINRA), Investors, Regulatory Agenda, Surveys

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SEC and PCAOB Combine Their Focusses on Broker-Dealer Audits and Independence in Settlements with Fifteen Audit Firms

On December 8, 2014, the Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) announced settlements with fifteen audit firms for violating independence rules applicable to auditors of… more

Auditors, Audits, Broker-Dealer, Independence Rules, PCAOB

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Second Circuit Maintains Expansive View of Civil Liability for Insider Trading

On February 18, 2014, in SEC v. Contorinis, the Court of Appeals for the Second Circuit affirmed an order requiring Joseph Contorinis to personally disgorge more than $7 million in insider trading profits realized by a fund he… more

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Replacing Familiar Benchmarks: Preparations to Phase Out the IBORs

Long a mainstay of the financial world, the floating “IBOR” rates, based on the rates of actual or purported interbank offered loans, are now being swept slowly into the dustbin of history. The quantity, in both number and size,… more

Banking Sector, EURIBOR, FSOC, Loans, Short-Term Loans

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2018: Business As (Un)usual – European Financial & Regulatory Developments into 2018

2017 in the UK and the rest of Europe seems to have been primarily a year devoted to implementation – both of political decisions already made and of legislation that had already been enacted. On the political front, Brexit… more

Bank Recovery and Resolution Directive (BRRD), Blockchain, Capital Markets, EMIR, EU

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