Blog – Securities Compliance Sentinel

https://securitiescompliancesentinel.foxrothschild.com/

The highly regulated securities and financial industry has a host of complex problems—and financial institutions often find themselves on the receiving end of audits, investigations and other compliance issues. Our team of seasoned securities attorneys share their knowledge and experience to address cutting edge industry issues. Join them in their exploration of this increasingly complex area.

Recent Blog Posts

  • Fox’s Mark Silow, Joshua Horn and Cannabis Practice Profiled We strongly encourage you to read the article profiling our firm and partners, Mark Silow (also our firm Chairman) and Joshua Horn, on Fox’s  Cannabis Practice Group.  See https://bol.bna.com/why-fox-rothschild-is-still-banking-on-its-cannabis-practice/.  No, sorry, Fox does not offer free samples, but, if you are interested in this emerging area, Josh is available to discuss.... More
  • When Independent Commentary Isn’t   The SEC has recently issued an Investor Alert regarding commentary provided about investors from what appear to be independent sources. It turns out, many of those independent sources are not independent at all. Instead, they are paid shills. The SEC has instituted enforcement actions against such companies for generating deceptive articles on investment websites. Among other things, these companies: Failed to disclose that they received payment even though companies had paid them directly or indirectly. Used different pseudonyms to publish multiple articles the... More
  • FINRA Is Sanctioning What   In Notice to Members 17-13, FINRA announced changes to its sanction guidelines. In other words, FINRA has listed its new top hits that it is pursuing. Two items bear particular attention. First, FINRA has introduced a “new principal consideration that examines whether a respondent has exercised undue influence over a customer.” This guideline reinforces FINRA heightened focus on senior investors and those who may be otherwise vulnerable, such as those with diminished capacity. Second, FINRA has introduced a “guideline related to borrowing... More
  • Pastor Fraud, Say It Isn’t So The SEC recently announced fraud charges, and sought an emergency asset freeze against a pastor who was accused of exploiting church members, retirees, and laid-off autoworkers. Apparently, he mislead these people by purportedly selling them on a successful real estate business. The pastor cloaked his fraud in faith-based rhetoric, including references to the bible and suggestions that he was praying for investors. As a result, his defrauded investors thought that he was more trustworthy than a banker, investing nearly $7 million... More
  • So I Guess It Is All About The Seniors Contrary to what the title may suggest, I am not referring to students who are about to graduate from high school or college. Instead, this post is about that group of our society who all too often (based upon my years of defending broker-dealers) are claimants in FINRA arbitrations; senior investors. As part of its ongoing effort to protect seniors, FINRA recently introduced Rule 2165 and amended Rule 4512. Both rules reflect a growing trend to provide greater protection to seniors. Rule... More
  • The SEC Reluctantly Vacates Collateral Bars After Court Loss One of the outstanding issues relating to the Dodd-Frank Act was the SEC’s use of statutory power to regulate conduct that occurred prior to its enactment in July 2010. The United States Court of Appeals for the District of Columbia recently decided that the SEC did not have the power to impose collateral bars on conduct pre-July 2010. Consequently, the SEC has now determined it will allow those respondents and/or defendants, who are subject to these collateral bars, to apply to... More
  • If You Want Trouble, Do Not Register as a Broker-Dealer At Fox Rothschild, we are constantly advising clients regarding the peril of engaging in the securities industry without the proper license. In fact, we have developed materials to provide our clients with information about the process. See http://www.foxrothschild.com/content/uploads/2016/10/e-book-Horn-Badway-McCoy-Broker-Dealers-Registered-Investment-Advisers-and-Commodities-Futures-Registered-Entities-October-2016.pdf. A recent case before the SEC has only confirmed this advice. The SEC barred a person from the securities industry, and required disgorgement in the amount of $400,000 because the person failed to register as a broker-dealer while selling private fund interests.... More
  • So You Want To Invest In A Cannabis Business… Many people see the green of cannabis as a way to the pot of gold at the end of the rainbow. If you are going to invest in a legal (at a state level) cannabis business, you need to make sure that you know what you purchase. Copyright: lightwise / 123RF Stock Photo The SEC recently charged a company and its founder with promoting “record” revenue numbers to investors and touting itself as a leader in the cannabis industry, all the while... More
  • What Should You Take Away From The SEC’s Investor Bulletin The SEC recently published its latest investor bulletin. The SEC publishes these from time to time to bring awareness to the investing public on certain issues. The current bulletin notes that the investor.gov web page provides a number of resources for the investing public, which include: The ability to check on an investment professional. Self-education about various products. To learn about online tools to make investing a simpler process. To learn how to avoid investment fraud. To stay current with SEC resources. To start researching public companies. To... More
  • SEC Proposes to Increase Municipal Securities Disclosures Last week, the Securities and Exchange Commission proposed Rule Amendments to Improve Municipal Securities Disclosures.  According to the SEC, these rule amendments are intended to “improve investor protection and enhance transparency in the municipal securities market”.  Rule 15c2-12 would be amended to add two new event notices: – Incurrence of a financial obligation of the issuer or obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the issuer or... More