SEC Approves Gift Prohibitions for Municipal Advisors
The SEC recently approved the Municipal Securities Rulemaking Board’s (“MSRB”) extension to Municipal Advisors (“MA’s”) of its dealer Rule G-20, restricting gifts in connection with municipal...
View ArticleMSRB Issues Compliance Advisory for Municipal Advisors
Last Thursday, November 12, the MSRB published its Compliance Advisory for Municipal Advisors (“MA’s”). The new MA regulatory regime was imposed by Dodd-Frank and implemented by the MSRB and SEC over...
View ArticleNDGA Judge Halts Another SEC Admin Proceeding
Atlanta federal Judge Leigh Martin May enjoined the SEC from proceeding in yet another administrative enforcement action Tuesday. Ironridge Global IV, Ltd. v. SEC, No. 1:15-CV-2512 (USDC NDGA Nov. 17,...
View ArticleTennessee Securities Division Expands Exam Program
The Tennessee Securities Division, Department of Commerce and Insurance (Julie Mix McPeak, Comm’r) recently confirmed its launch of a comprehensive three-year cycle examination program covering all...
View ArticleDOJ Unveils “Yates Memo” Revisions to US Attorneys’ Manual
Speaking to a November 16 Money Laundering conference jointly sponsored by the American Banking and Bar Associations, Deputy AG Sally Yates unveiled revisions to the Department of Justice’s U.S....
View ArticleWhistleblower Standing Split in Circuits & TN Federal Courts
There’s a developing circuit split over whistleblower standing for retaliation claims. A decision this week extended that split to U.S. district courts within Tennessee, too. In Verble v. Morgan...
View ArticleA 1,500-Day Ordeal: First Circuit Rebukes SEC for In-House Prosecution
Five years after the SEC brought charges that cost two fund executives their jobs, the U.S. First Circuit overturned the sanctions, chiding the SEC for misreading critical evidence, lacking substantial...
View ArticleSEC Tees Up Newman & Admin Forum Issues for 2016
The SEC granted two petitions for review last week that tee-up significant issues for full Commission consideration late next Spring. The Commission will consider the application of the Second...
View ArticleVW Scandal Bears Out Emphasis on “Culture of Compliance”
Last week, VW blamed its “culture” for allowing “individual misconduct” that lead to the emissions-testing-evasion scandal engulfing the company. It reminded me of a couple of corporate-compliance...
View ArticleTenn. S. Ct. Examines Jurisdiction Over Non-Resident Defendants
The Tennessee Supreme Court released a December 14 decision reviewing personal jurisdiction over non-resident defendants. First Community Bank, NA v. First Tennessee Bank, NA, No. 2012-01422-SC-R110CV...
View ArticleSupreme Court Reaffirms Arbitration Class-Waivers
The Supreme Court Monday re-affirmed the enforceability of class-waivers in arbitration agreements. The five-justice majority felt the need to rebuke the California courts for trying to end-run Federal...
View ArticleMSRB Files New MA Pay-to-Play Rule with SEC
On December 16, the Municipal Securities Rulemaking Board (“MSRB”) filed with the SEC a proposed rule that would extend to municipal advisers the MSRB’s existing rule prohibiting “pay-to-play”...
View ArticleBroker-Dealer “Pay-to-Play” Rule Proposed to SEC
This week FINRA proposed for SEC adoption a “pay-to-play” rule for broker-dealers engaged in distribution or solicitation activities with government entities. The Proposed Rule is modeled after...
View ArticleFINRA Submits Revised Recruiting-Disclosure Rule to SEC
On December 16, FINRA submitted for SEC approval proposed Rule 2273 to require that brokers send customers an “educational disclosure” when changing firms. Although the proposal deletes a...
View ArticleFINRA-DR Task Force Report on Securities Arbitrations
FINRA’s Dispute Resolution Task Force issued its Final Report in mid-December. The Report reflects the group’s consideration of wide-ranging issues affecting the nation’s principle dispute-resolution...
View ArticleSEC Approved Municipal Advisor Conduct Rule
On Christmas Eve’s eve, the SEC approved, without change, the MSRB’s proposed conduct rule for municipal advisors. Broadly, the Rule imposes: Fiduciary duty (care and loyalty) to municipal entity...
View ArticleAnnual Compliance Testing Should Re-Calibrate WSPs
As 2015 ended, FINRA fined Barclays Capital $13.75 million for mutual-fund switching and breakpoint supervisory failures that might have been avoided if that part of Barclay’s WSPs had been properly...
View ArticleFINRA’s 2016 Priorities: Fives on the Fifth
FINRA released its annual Regulatory and Examination Priorities Letter (so-called “Errico Letter”) on January 5. FINRA’s top five priorities: Firm Culture. FINRA’s been pushing “culture of compliance”...
View ArticleSEC Announces 2016 Exam Priorities
The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) announced the agency’s priorities for this year on January 11. Commission staff will focus on three broad areas: Retail Investors,...
View ArticleFINRA Arbitrations: Behind Claimant “Win” Statistics
FINRA reported that, for 2015, Claimants won about half of private securities arbitrations: 47% for all-public panel decisions; 45% for majority-public panels. A colleague and securities mediator, Dana...
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