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

  • SEC Still Has Lawyers in its Cross-Hairs It is almost axiomatic that the SEC “enjoys” bringing enforcement actions against lawyers.  The SEC believes that lawyers have a special duty to protect and police the securities markets, and, when a lawyer fails, the SEC is right there to pounce. In fact, the SEC fined and barred an attorney from practicing before the Commission because the attorney failed to conduct proper due diligence when acting as underwriter’s counsel in misleading municipal bond offerings.  See https://www.sec.gov/litigation/admin/2017/33-10335.pdf.  The SEC claimed that the lawyer prepared erroneous documents regarding on-going disclosure obligations.... More
  • Ernie Badway to Co-Host Webinar on New Developments in AML and Training Requirements Ernie Badway is scheduled to co-host a webinar discussion on new developments in AML and training requirements on Wednesday, September 13, 2017 at 1:00 p.m.  See http://mailchi.mp/e5dd1d2898b8/webinar-sample.  Details are below: New Developments in AML and Training Requirements New Developments in AML and Training Requirements  Date: Wednesday, September 13, 2017  Time: 1:00pm ET / 12:00pm CT / 11:00am MT / 10:00am PT / 9:00am AT Webinar Description:  With numerous high profile incidents reported on a regular basis, it is little wonder that FINRA, FinCEN and the SEC continue... More
  • Let’s Not Get Too Excited with FINRA’s Proposal on Re-Taking Exams Most brokers despise the fact that they need to re-take their examinations if they are not employed with a broker-dealer for 2 years or if they are not associated with a member firm.   Now, FINRA comes to the rescue with a new proposal to permit registered representatives to avoid re-taking their exams for up to 7 years so long as they fulfill continuing education requirements.  See http://www.finra.org/sites/default/files/rule_filing_file/SR-FINRA-2017-007.pdf. The proposal also allows a person associated with a member firm to obtain any qualification and registration permitted by... More
  • Brokers Have To Be Reminded To Avoid Using Personal Emails and Texts Despite numerous warnings, some people just do not get it.   The SEC barred a broker from the industry because the broker used personal email and text messages to obtain client investments.  See the Commission’s website. The SEC found these personal communications were never submitted to the firm for review.  As a result, the broker aided and abetted his firm’s books and records violations.  Further, the broker also made numerous other violations as well. This scenario demonstrates the critical requirement to only use firm... More
  • Cyber-Security and the SEC Alert   For a nice discussion on the SEC’s cyber-security alert, please see this link.... More
  • Cybersecurity Insights from the SEC   Over the last several months, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) has been conducting a “sweep examination” of over 70 broker-dealers and investment advisers to assess their cybersecurity policies and procedures.  https://www.sec.gov/files/observations-from-cybersecurity-examinations.pdf.  In particular, OCIE looked at their preparedness regarding governance and risk assessment; access rights and controls; data loss prevention; vendor management; training; and incident response. For the most part, OCIE found policies and procedures in place, and these firms did, in fact, conduct penetration tests and vulnerability scans; used a system to prevent... More
  • Cybersecurity — What are you doing The SEC recently issued an alert for investment advisors regarding cybersecurity.  Here is a link to a story on the alert.  Are you doing enough to fight this risk?  If you do not have an answer, then the answer is probably no.    ... More
  • Rogue Brokers Beware   FINRA is ever-increasing its focus on rogue brokers.  For the latest on this issue, check out this recent post.... More
  • FINRA Notice to Members; Enhanced Confirmation Disclosures FINRA has recently issued a notice to members regarding to the enhancement of confirmation disclosures.  Here is a link to that notice.    ... More
  • Ransomware; don’t be held hostage Ransomware is an ever increasing problem.  To learn more about it and to avoid its impact, check out this blog.... More