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What is the Effect of a FINRA Form U4 or U5 Disclosure?

By George C. Miller, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, June 13, 2018.

Representatives of broker-dealers, investment advisers and securities issuers must complete a Form U4 (titled “Uniform Application for Securities Industry Registration or Transfer”) to register with FINRA and the various states and other jurisdictions in which they do business. The Form U4 requires applicants to list, among other things [...] Read More

Regulators Pursue Enforcement Actions Against Woodbridge Sales Representatives

By George C. Miller, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, June 8, 2018.

Last December, the Securities and Exchange Commission accused the Woodbridge Group of Companies and its founder, Robert Shapiro, of running a $1.2 billion Ponzi scheme and allegedly bilking thousands of retail investors, including many senior citizens, out of their hard earned retirement funds. According to the SEC’s complaint, Woodbridge [...] Read More

Outside Business Activity Abuses High on FINRA’s Hit List

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, June 6, 2018.

As a sign of just how serious FINRA considers failures by brokers to comply with their firm’s Outside Business Activity disclosure rules to be, consider this: Four of the 11 consent letters, by which a registered person agrees to a settlement with FINRA [...] Read More

Keys to Spotting Market “Bubbles”

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, June 1, 2018.

Vikram Mansharamani, a lecturer at Harvard’s John Paulson School of Engineering and Applied Sciences, pointed to several “clues” that the economy is possibly ripe for a bubble crash. [...] Read More

Seniors Most Often Defrauded by Family and Friends

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, May 30, 2018.

For a number of reasons, seniors are some of the most likely victims of financial and securities fraud. First, given their age and the fact that many senior lives alone, seniors tend to be more trusting than younger people. [...] Read More

Broker Alert - FINRA to Publicly Report Undisclosed Bankruptcies, Judgments and Liens on New U4’s

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Thursday, May 24, 2018.

Beginning July 9, 2018, FINRA, the Financial Industry Regulatory Authority, will search public records to determine whether registered reps who move from one firm to another disclosed any prior bankruptcies, judgments or liens. [...] Read More

California Supreme Court Brings Substantial Change to Employee/Independent Contractor Classification

By Jessica L. Mackaness, Esq. of Shustak Reynolds & Partners, P.C. posted on Tuesday, May 22, 2018.

On April 30, 2018, the California Supreme Court issued its long-awaited opinion in Dynamex Operations West, Inc. v. Superior Court, which significantly changed the standard for determining whether workers in California should be classified as “employees” or as “independent contractors” for purposes of the wage orders adopted by California’s Industrial Welfare Commission [...] Read More

MERRILL BROKER FIRED OVER $524.00 EXPENSE REIMBURSEMENT: THE TREND CONTINUES ON EXPENSE INFRACTIONS

By Erwin Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, May 16, 2018.

The industry-wide crackdown on expense account improprieties continues. In recent blogs I wrote about the crackdown by FINRA, the Financial Industry Regulatory Authority, and member firms on violations of expense reimbursement policies [...] Read More

New SEC Rulemaking Package Seeks to Enhance Retail Investor Protection and Awareness

By Erik M. Ideta, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, May 2, 2018.

On April 18, 2018, the SEC voted 4 to 1 to propose the Standards of Conduct for Investment Professionals Rule making Package, a package designed to enhance the protection and decision-making of retail, or “Main Street,” investors. Read More

FINRA Proposes New Anti-Churning Rule

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, April 25, 2018.

In an effort to locate and identify brokers who excessively trade their clients’ accounts to benefit themselves through excessive trading commissions to the detriment of their clients, FINRA announced a new proposal to widen the net to ensnare brokers who “churn” client accounts. Read More