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California Securities Lawyer Update: FINRA No Longer Will Require B-D's to Supervise Unaffiliated RIA's
By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Thursday, March 1, 2018.
Under a FINRA proposal released this week, broker-dealers may no longer be required to supervise the activities of their registered representatives performed at unaffiliated RIA firms. The rule, if adopted, will substantially reduce the burden of B-D’s monitoring the outside business activity of the firm’s brokers performed at unrelated RIA firms. Read More
UBS Adds New Non-Compete Clause To Bonus Agreements
By George C. Miller, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, February 21, 2018.
Just months after exiting The Broker Protocol, UBS Financial Services has reportedly added a broad non-solicitation clause to bonus agreements certain advisors are required to sign before receiving their 2017 production bonuses... Read More
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