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FINRA Updates Expungement Rules
By Robert Conca, Partner, and Aurora Gallardo, Law Clerk of Shustak Reynolds & Partners, P.C. posted on Friday, February 4, 2022.
Changes to broker expungements in arbitration seemed imminent when FINRA first proposed new rule changes of the expungement process to the SEC for approval. [...] Read More
FINRA Updates Continuing Education Program for Registered Persons
By Robert Conca, Partner, and Andrew Steiger, Law Clerk of Shustak Reynolds & Partners, P.C. posted on Thursday, February 3, 2022.
The Financial Industry Regulatory Authority (“FINRA”) recently announced important changes to its rules which deal with continuing education for registered persons. Updates to FINRA Rules 1210 and 1240 will create the new Maintaining Qualifications Program (“MQP”) [...] Read More
Ponzi Scheme Bulletin
By Joseph M. Mellano, Senior Associate Attorney of Shustak Reynolds & Partners, P.C. posted on Thursday, January 20, 2022.
Recent developments in several high-profile, Ponzi scheme cases have renewed questions about the extent of the fallout from investment fraud prosecutions and the importance of due diligence. [...] Read More
Proposed Updates to Electronic Recordkeeping Requirements for Broker Dealers
By Robert R. Boeche, Partner of Shustak Reynolds & Partners, P.C. posted on Monday, December 27, 2021.
On November 18, 2021, the U.S. Securities and Exchange Commission proposed updates to the Securities Exchange Act of 1934 rules for (i) electronic recordkeeping and (ii) prompt production of records. These updates apply to broker-dealers, security-based swap dealers, and major security-based swap participants. [...] Read More
SEC Releases Information Update to Align Existing Staff Letters with New Adviser Marketing Rule
By Robert R. Boeche, Partner of Shustak Reynolds & Partners, P.C. posted on Monday, November 22, 2021.
As discussed more fully in our earlier article, the Securities Exchange Commission (“SEC”) adopted its new Marketing Rule on December 22, 2020. The new Marketing Rule effectively merged two sets of rules to create a new paradigm that modernizes adviser marketing. [...] Read More
New SEC Risk Alert – Advisory Fees are in the Crosshairs Again
By Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Thursday, November 18, 2021.
On November 10, 20201, the SEC’s Division of Examinations issued a Risk Alert relating to investment adviser’s fee calculations. The deficiencies discussed in the Risk Alert stem from a nationwide SEC exam initiative that focused on fees charged to retail clients. [...] Read More
Upcoming Deadlines: Investment Advisers’ Year-End and Q1 2022 Compliance Reminders
By Robert R. Boeche, Partner & Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 9, 2021.
At the end of every fiscal year, U.S. registered investment advisers (“RIAs”) have regulatory compliance tasks and obligations, which range from performing an annual review of the RIA’s compliance function to submitting annual update filings to the U.S. Securities and Exchange Commission (“SEC”) or state regulators. [...] Read More
If I Hold an Ownership Interest in a Privately Held, U.S. Domiciled Entity, Will I Need to Disclose Beneficial Ownership Information?
By Anne Swenson, Associate Attorney & William Petti, Law Clerk of Shustak Reynolds & Partners, P.C. posted on Friday, October 29, 2021.
The Corporate Transparency Act (“CTA”) will soon require U.S. domiciled or active entities to report beneficial ownership information to the U.S. Department of the Treasury’s (“the Treasury”) Financial Crimes Enforcement Network (“FinCEN”) [...] Read More
FINRA Withdraws Its Proposed Expungement Rule Changes
By Jonah A. Toleno, Partner of Shustak Reynolds & Partners, P.C. posted on Tuesday, August 24, 2021.
FINRA proposed a change to its expungement rules in the Fall of 2020, seeking to alter certain aspects of the expungement process, including substantially shortening the time limit for a registered representative to seek expungement of customer-related disclosures and allowing expungement to be granted only by a three-person panel (previously a single arbitrator could order expungement). [...] Read More
Change to Definition of “Qualified Client” Takes Effect
By Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Tuesday, August 17, 2021.
Investor sophistication standards are critical for hedge funds, private equity funds and other advisory firms that use performance-based compensation agreements. The “accredited investor” standard is the most familiar, but the “qualified client” standard is more important when a firm charges a fee based on investment profits. [...] Read More