Securities and Investment Blog

Finra’s New Disclosure Reviews May Help Lift Burden For Firms And Representatives
Beginning July 9, 2018, FINRA will conduct an individual public records search on every applicant when a broker-dealer files a form U-4 application for registration.  FINRA currently performs this search for all registered persons—but only annually.  This additional records search—which will satisfy the requirement to perform a search of records for judgments, bankruptcies, and liens only—will provide added benefit to member firms and registered persons, according to FINRA.  In FINRA’s May 18, 2018 Information Notice, FINRA claims this additional search is “likely to: (1) reduce the costs to firms associated...

Missouri Securities Division Bars Two Former Owners Of Local Broker-dealer
Steven Larson and Michael Standley owned Oakbridge Financial Services along with Kathy Winter.  All three of them functioned as registered representatives of the broker-dealer as well.  The three were also associated with a state registered investment adviser, Private Label Money Management (PPMM).  Late last year Winter agreed to pay a small fine and submit to heightened supervision due to her alleged administrative failures as president of PPMM.  She was also barred from operating as a supervisor for either a broker-dealer of RIA for two years.  Not long before that, Winter had been suspended by FINRA...

When You Get A Letter From The State Securities Division
If you receive a letter demanding information and documentation from a state securities division, I hope you find this blog before you rifle off a response.  As a former Commissioner of Securities, I am frequently retained by individuals who are the subject of a state securities division investigation.  Unfortunately, and far too often, the individuals hire me after they have sent in a response to the initial demand letter.  Some even wait until after they have been through a recorded interrogation at the division. A request for information is not a friendly or harmless inquiry. ...

The Opaque World Of Arbitration Might Soon Become Clearer In New York
The New York Legislature has two bills pending in the Assembly and Senate which would make public, for the first time, details of private arbitrations. A09769 and S07146, sponsored by Matthew Titone and Brian Kavanagh respectively, are both crafted to provide information related to private arbitrations to the public. Information such as: · the name of the non-consumer party, · the state and zip code in which the consumer party resided at the time of arbitration, the type of    dispute involved,· whether the consumer was the prevailing party, · on how many occasions, if any, the non-consumer party has previously...

Representing Elders And Athletes
It wouldn’t seem likely that elders and athletes would have much, if anything, in common.  But they do.  They are frequently blessed with substantial semi-liquid assets, and are therefore the targets of fraudulent or reckless investment schemes. Much has been written about why professional athletes are frequent victims.  And the last professional athlete I represented possessed many of the following common attributes:·         Young and inexperienced with finances;·         Rapidly accumulating substantial wealth;·        ...