Blog
Search Our Blog
Federal Court Denies Broker-Dealer's Request for Internal FINRA Documents in SEC Enforcement Action
By Erik M. Ideta, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, February 16, 2018.
On February 13, 2018, a federal district court judge denied a U.S. broker-dealer’s request for leave to compel internal regulatory documents from FINRA in an SEC enforcement action captioned SEC v. Lek Securities Corp., et al... Read More
Maserati-Buying Insurance Agent Admits to Stealing $1.5 Million from Elderly Clients
By Jessica L. Mackaness, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, February 9, 2018.
On February 5, 2018, a San Diego insurance agent, Shawn Heffernan, pleaded guilty to defrauding senior citizens and others out of nearly $1.5 million by soliciting funds for “investments,” and then spending the money on personal items such as jewelry, a Maserati, and three rental properties. Read More
California Securities Lawyer Update: FINRA Releases 2018 Regulatory and Examination Priorities Letter
By George C. Miller, Esq. of Shustak Reynolds & Partners, P.C. posted on Monday, February 12, 2018.
Each year, the Financial Industry Regulatory Authority (FINRA) outlines its core areas of focus through its annual Regulatory and Examination Priorities Letter. This year’s letter highlights a number of longstanding areas of focus, including fraud, suitability, anti-money laundering and private placement investments, as well as several new categories. Here are FINRA’s top priorities for 2018: Read More
California Financial Services Law Report- The Growing Trend: Brokers Moving From Major Wirehouses To Independent Broker-Dealers
By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, January 31, 2018.
The facts speak for themselves. There is a steady and growing trend for brokers to leave one of the remaining four wirehouse firms (Merrill, Morgan, Wells Fargo, UBS) and move to one of the independent broker-dealers (IBD’s), RIA firms or smaller, regional firms. In 2016, the four wirehouses had a net exit of approximately $40 billion of assets leave them for one of the IBD’s and other advisor channels. In 2017, the movement of assets from the wirehouses to the IBD network accelerated dramatically. Approximately $75 billion moved from one of the four wirehouses to one of the IBD’s, a regional broker or an RIA firm. Read More
Morgan Stanley Post "Prexit" (Broker Protocol Exit)
By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, December 15, 2017.
FINRA Examinations Report Cites Broker-Dealer Cybersecurity Deficiencies
By Jonah A. Toleno, Esq. of Shustak Reynolds & Partners, P.C. posted on Tuesday, December 12, 2017.
On December 6, 2017, the Financial Industry Regulatory Authority (FINRA) released a report on recent findings by it Examination program, citing to key deficiencies in broker-dealer cyber security processes. Read More
Financial Brokers Beware: FINRA Is About To Seriously Reduce The Ability To Expunge Customer Complaints
By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, December 13, 2017.
FINRA recently submitted a new proposal to the Securities and Exchange Commission which will greatly narrow, and substantially complicate, the ability of brokers to expunge- or remove- from public records including their FINRA CRD (Central Registration Depository) records and FINRA’s Broker Check, prior customer complaints. Read More
The Broker Protocol Update-Who's In-Who's Out
By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Thursday, December 7, 2017.
As we wind down 2017, there has been a flurry of news over the Broker Protocol which began with Morgan Stanley’s announced departure from the group of over 1,500 financial institutions that have signed onto the Protocol since it was first adopted in 2004 by Smith Barney, UBS and Merrill Lynch. Read More
Brokerage Firms and FINRA Crack Down on Broker Expense Account Violations
By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Monday, December 4, 2017.
In a growing number of high profile cases, often involving major producers and star brokers at major wire houses, the firms and FINRA have adopted a zero-tolerance policy for violations of expense account reporting. These crackdowns involve both firm funds and personal business development accounts (“BDA Accounts”), which are available at most wire houses and are funded with brokers’ pre-tax earnings. What is unusual is both the recent frequency of the crackdowns and the severity of the sanctions involved. Read More
From Bitcoin to Ethereum, The Rise of Initial Coin Offerings Draws Regulatory Scrutiny
By Jake Zindulka of Shustak Reynolds & Partners, P.C. posted on Monday, November 27, 2017.
From Bitcoin to Ethereum, The Rise of Initial Coin Offerings Draws Regulatory Scrutiny The amount of capital raised through initial coin offerings (ICOs) has increased exponentially in just the last year. So far, in 2017, companies have raised over $3 billion compared to approximately $300 million raised between 2014 and 2016. Read More