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Challenges To SEC Use Of Administrative Proceedings Likely To Increase

By Jeffrey T. Petersen, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, March 13, 2015.

Our blog post on February 12, 2015 detailed the SEC’s recent increase in use of administrative proceedings to seek civil monetary penalties against all individuals, even those who are not registered or associated with a registered entity. That post also highlighted the problems […] Read More

RBC Wealth Management Closing International Unit

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, March 11, 2015.

After aggressively courting advisors with large international clienteles over the past year or so, RBC Wealth Management has done an abrupt about face and is shutting down its International Advisory Group, leaving 40 brokers, based in San Diego and Miami, scrambling […] Read More

Bank Of America Merrill Lynch Planning Protocol Exit?

By George C. Miller, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, February 27, 2015.

According to recent reports, Bank of America / Merrill Lynch may be distancing itself from “The Broker Protocol.” The Broker Protocol is a longstanding agreement amongst more than 1,200 brokerage firms, registered investment advisory firms and others that allows financial […] Read More

Morgan Stanley Loses Over $2.1 Billion In Assets To Rivals

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Tuesday, February 17, 2015.

According to a recent survey by InvestmentNews, during the first two weeks of February, 2015, advisors with assets under management totaling over $2.1 billion departed Morgan Stanley Wealth Management for various competitors. Those departures account for over 67% of assets that departed all […] Read More

The "New Normal": SEC Increases the Use of Administrative Proceedings for Enforcement

By Jeffrey T. Petersen Esq. of Shustak Reynolds & Partners, P.C. posted on Thursday, February 12, 2015.

In 2010, the Dodd-Frank Act expanded the SEC’s power to enforce the securities laws with the use of Administrative Proceedings. In the past, the SEC could seek civil penalties in administrative proceedings only against registered persons and entities or those associated therewith. Pursuant […] Read More

SEC Accuses San Diego RIA Total Wealth Management Of Using Client Money to Fund Earlier Fraud Settlement

By of Shustak Reynolds & Partners, P.C. posted on Monday, February 9, 2015.

The Securities and Exchange Commission filed charges against San Diego based investment advisor Jacob Cooper and his firm, Total Wealth Management. The SEC, which is seeking to freeze the firm’s assets, alleges that Cooper used client funds to settle an earlier SEC administrative action from last April. In that earlier action, the SEC accused Cooper […] Read More

Checking Out A Broker – FINRA’s Broker-Check

By Erwin J. Shustak Esq of Shustak Reynolds & Partners, P.C. posted on Thursday, January 29, 2015.

Too often investors learn of their broker’s true background, and past problems, too late. FINRA, the Federal Investor National Regulatory Authority, tasked with licensing and overseeing the more than 250,000 brokers in the country, has an easy to navigate tool on its website, www.finra.org, which Read More

Oppenheimer to Pay $20 Million to Settle With Regulators For Penny Stock Violations

By Nadia K. Ruyle Esq. of Shustak Reynolds & Partners, P.C. posted on Thursday, January 29, 2015.

Oppenheimer & Co has agreed to settle with the SEC and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) for a combined $20 million in sanctions stemming from allegations the firm improperly sold penny stocks and ignored red flags. As part […] Read More

Fidelity Ordered to Pay $350,000 Fine for Overcharging Customers

By Jessica H. Antoniades, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, January 21, 2015.

The Financial Industry Regulatory Authority (“FINRA”) recently ordered Fidelity Investments to pay a $350,000 fine after determining the firm overcharged customers $2.4 million over a period of approximately 7 years. The overcharges affected over 20,000 customers, some of whom were double-billed […] Read More

New FINRA Rules Prohibit Compensation Sharing in the Securities Industry

By Jonah A. Toleno, Esq. of Shustak Reynolds & Partners, P.C. posted on Monday, January 19, 2015.

The Securities and Exchange Commission recently approved the Financial Industry Regulatory Authority’s (FINRA’s) proposed Rule 2040 regarding Payments to Unregistered Persons. Section (a) of the Rule prohibits members or associated persons from, directly or indirectly, paying any compensation, fees, concessions, discounts, commissions or […] Read More