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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

FINRA Warns Against Settlement Provisions To Silence Whistleblowers

By Nadia K. Ruyle, Esq. of Shustak Reynolds & Partners, P.C. posted on Tuesday, December 30, 2014.

The Financial Industry Regulatory Authority (FINRA) recently issued new guidance cautioning member firms about the use of broad confidentiality provisions in settlement agreements and discovery stipulations. According to FINRA, confidentiality provisions that may prevent or dissuade parties from reporting potential securities […] Read More

UPDATE: FINRA Arbitration Fee Rate Hike

By Jessica H. Antoniades, Esq. of Shustak Reynolds & Partners, P.C. posted on Tuesday, December 23, 2014.

Last week brought about an increase to the price of bringing a FINRA arbitration. Effective December 15, 2014, various fees associated with FINRA arbitration claims increased, including hearing session fees, filing fees and member process fees. These fee increases affect investors, […] Read More

Relationship Matters: Update On Tipper – Tippee Liability; Joseph Bartholomew Alleged Ponzi Scheme; And SEC’s New Fiduciary Rule

By Dennis A. Stubblefield, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, December 12, 2014.

"It's All About the Rel', 'bout the Rel', No Problem…" is a Meghan Trainor-inspired musical way to think about two big developments in the last week: the very big and very new news out of the Second Circuit on Insider […] Read More