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SEC Rules 3a5-4 and 3a44-2 Requiring Registration of Liquidity-Providing Persons as "Dealers"
By Robert R. Boeche, Partner; Robert D. Conca, Partner; and Eden Elkayam, Law Clerk of Shustak Reynolds & Partners, P.C. posted on Tuesday, March 19, 2024.
On February 6, 2024, the Securities and Exchange Commission (“SEC”) adopted Rules 3a5-4 and 3a44-2 (“Final Rules”) defining the phrase “as a part of a regular business” and identifying activities that would cause people within certain activities to be “dealers” or “government securities dealers.” Read More
The Securities and Exchange Commission Announces New Set of Private Fund Rules
By Robert R. Boeche, Partner; Robert D. Conca, Partner; and Eden Elkayam, Law Clerk of Shustak Reynolds & Partners, P.C. posted on Tuesday, March 19, 2024.
On August 23, 2023, the Securities and Exchange Commission (“SEC”) adopted new rules regarding the regulation of private funds and their advisors, providing an update to the existing compliance rules already in place for investment advisers. Read More
New Reporting Requirements Under the Corporate Transparency Act
By Robert R. Boeche, Partner; Robert D. Conca, Partner; and Eden Elkayam, Law Clerk of Shustak Reynolds & Partners, P.C. posted on Tuesday, March 19, 2024.
Beginning January 2024, several new laws began to take effect, impacting various professionals - specifically those U.S. businesses and entities who file documents with the secretary of state. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) began accepting Beneficial Ownership Information Reports (“BOI’s” or “BOI”) in January in an effort to increase transparency surrounding entity ownership. Those who fail to comply could receive significant penalties – including fines and/or imprisonment. Read More
SEC Announces 2024 Examination Priorities
By Robert D. Conca, Partner of Shustak Reynolds & Partners, P.C. posted on Wednesday, November 1, 2023.
Being fired is never easy, but it is a particularly challenging and uncertain time for licensed financial advisors and their clients. Within 30 days of the termination, the advisor’s prior firm must file a Form U5 with the Financial Industry Regulatory Authority (FINRA), which provides information about the circumstances of the termination. In this blog post, we explore what advisors can expect if they are fired and the implications of the Form U5 filing. Read More
Navigating the Aftermath: Financial Advisor Terminations and The Form U5
By George C. Miller, Partner of Shustak Reynolds & Partners, P.C. posted on Friday, October 27, 2023.
Being fired is never easy, but it is a particularly challenging and uncertain time for licensed financial advisors and their clients. Within 30 days of the termination, the advisor’s prior firm must file a Form U5 with the Financial Industry Regulatory Authority (FINRA), which provides information about the circumstances of the termination. In this blog post, we explore what advisors can expect if they are fired and the implications of the Form U5 filing. Read More
If You Didn’t Already Get It Done: Don’t Forget About the Initial Department of Labor Retrospective Review
By Robert R. Boeche, Partner; Robert D. Conca, Partner; and Andrew Steiger, Associate of Shustak Reynolds & Partners, P.C. posted on Wednesday, July 12, 2023.
As described in our prior article on the Requirements of New Prohibited Transaction Exemption PTE 2020-02, on December 18, 2020, the U.S. Department of Labor’s Prohibited Transaction Exemption 2020-02 (the “Exemption”) became effective. Among other things, this rule requires advisers relying upon this exemption to perform an annual Retrospective Review (the “Review”). The Exemption requires that the Review be reasonably designed to: (1) detect and prevent violations of the Impartial Conduct Standards, and (2) achieve internal compliance with the Policies & Procedures enacting those Impartial Conduct Standards. The Review consists broadly of two components, the methodology and the results, which are to be memorialized as part of a written report. Read More
California DFPI Securities Regulator Censures Morgan Stanley for Acting as Unlicensed Lender
By George C. Miller, Partner of Shustak Reynolds & Partners, P.C. posted on Thursday, June 15, 2023.
The California Department of Financial Protection and Innovation (“DFPI”) has censured a subsidiary entity of Morgan Stanley, Morgan Stanley Smith Barney FA Notes Holdings, LLC (“MSSBFA”) and issued a $1 million fine for acting as an unlicensed, unregistered lender within the State of California. Read More
First Republic Financial Advisors Impacted by Bank’s Failure
By George C. Miller, Partner of Shustak Reynolds & Partners, P.C. posted on Friday, May 12, 2023.
First Republic Bank’s May 1, 2023, collapse marked the largest U.S. bank failure since the 2008 Great Recession, when Washington Mutual imploded. Regulators were forced to step in, and J.P. Morgan Chase acquired the bank’s deposits and a majority of its remaining assets. First Republic’s 84 branch offices will remain open, at least for now, having been rebranded as JPMorgan Chase Bank. But what about the hundreds of financial advisors affiliated with First Republic’s subsidiary broker-dealer and investment advisory firms? Read More
SEC Approves New FINRA Expungement Rules
By George C. Miller, Partner of Shustak Reynolds & Partners, P.C. posted on Wednesday, May 3, 2023.
On April 12, 2023, the SEC approved long-anticipated changes to FINRA’s expungement rules that will make the expungement process more challenging, and likely more expensive, for registered representatives. While the SEC has approved the new rules, FINRA has not yet announced when they take effect. Read More
SEC Division of Examinations Announces 2023 Exam Priorities
By Robert R. Boeche, Partner, Robert D. Conca, Partner, and Andrew R. Steiger, Associate Attorney of Shustak Reynolds & Partners, P.C. posted on Tuesday, April 11, 2023.
On February 7, 2023, the Securities and Exchange Commission’s Division of Examinations (“DOE”), formerly the Office of Compliance Investigations and Examinations (“OCIE”), announced its annual exam priorities. DOE Director Richard R. Best said, “[w]e will emphasize compliance with new SEC rules applicable to investment advisers and investment companies as well as continue our focus on emerging issues and rules aimed at protecting retail investors.” Read More