Category: Regulatory Issues (SEC & FINRA)

The Securities and Exchange Commission (SEC) creates and enforces rules intended to protect the economic stability of the United States and the legitimacy of many domestic markets. Oftentimes, the SEC creates new rules with the intention of benefiting the domestic economy, only to have people…

Executives and others privy to non-public business information can face insider trading allegations when their personal investments reflect the misuse of their industry knowledge. Insider trading cases often involve someone capitalizing on an upcoming business merger, bankruptcy or public listing, but the Securities and Exchange…

An SEC investigation is never a welcome turn of events, but wise choices can mitigate the damage an investigation may have on your firm. One strategy for reducing the overall expense and liability is to engage in remediation efforts, as one Silicon Valley company demonstrated…

The Financial Industry Regulatory Authority (FINRA) does more than just oversee broker-dealers in the United States. FINRA can also issue fines and suspensions, as well as bar individuals from the brokerage industry. One way that FINRA determines whether there is an issue that warrants such…

In yet another episode in the ongoing battle between the SEC and billionaire Elon Musk, a federal judge has rejected Musk’s bid to have a settlement thrown out arising from a tweet he posted in 2018. The parties reached the settlement after Musk tweeted a…

Chief compliance officers (CCOs) play a critical role in helping broker-dealers avoid regulatory oversights and promote the overall integrity of the market. However, CCOs are obviously not the only parties who could be on the hook for regulatory violations at a brokerage firm. The Financial…

An independent auditor must remain free from conflicts of interest that could give the auditor a personal stake in the company they are auditing. This concept is at the heart of a probe being conducted by investigators from the Securities and Exchange Commission (SEC). The…

Broker-dealers and employees of publicly traded companies must be careful about how they communicate regarding securities trades. Under SEC Books and Records Rules, people in such positions are required to preserve comprehensive records regarding the purchase and sale of stocks, customer complaints, and other important…

Anyone who holds a large position in a securities-based swap should be aware of new rules proposed by the Securities and Exchange Commission (SEC). The proposed rules aim to prevent fraudulent, manipulative and deceptive activity with regard to securities-based swaps. The proposed rules also seek…

Data breaches are a growing concern for broker-dealers in the financial services industry. In recent months, the Securities and Exchange Commission (SEC) has reported a spike in “attempts by outside bad actors” to gain access to accounts. For broker-dealers, failing to protect customer data —…