Articles Posted in News Releases

On March 12, 2013, industry researchers released an annual survey of FINRA’s sanctions. The results showed that many areas increased in 2011 from disciplinary actions to fines. For example, FINRA filed 1488 disciplinary actions in 2011, up from 1310 in 2010. Additionally, the number of individuals barred increased. In 2011 FINRA barred 329 individuals, while FINRA…

In 2012, Rep. Maxine Waters introduced legislation to authorize the SEC to assess user fees on investment advisors to fund SEC’s examinations. This was seen as an alternative to the legislation that Rep. Bachus introduced in 2012 that would have shifted investment advisor oversight from the SEC to a self-regulatory organization. Both failed in 2012…

On March 4, 2013, we published a blog entitled SEC Requests Comments and Information to Assess Standards of Conduct and Other Obligations of Broker-Dealers and Investment Advisors, that detailed the SEC’s request for comments on the its possible uniform fiduciary duty. On March 12, 2013 at Mary Jo White’s confirmation hearing before the Senate Banking Committee,…

On March 11, 2013, the SEC charged New York-based private equity firm Ranieri Partners, one of its former senior executives, and an unregistered broker with securities law violations for illegally soliciting more than $500 million in capital commitments for funds managed by the firm. William M. Stephens was the unregistered broker. Donald W. Phillips was the former…

Recently, the SEC charged two investment managers at Oppenheimer & Co. with misleading investors about the valuation policies and performance of a private equity fund, Oppenheimer Global Resource Private Equity Fund I L.P. (OGR). Additionally, on March 11, 2013, the Massachusetts Attorney General’s office announced a related action and additional financial penalties against Oppenheimer. According to the SEC, Oppenheimer…

The Illinois State Bar Association recently issued an opinion stating that a non-lawyer’s representation of parties in a FINRA arbitration generally constitutes the unauthorized practice of law. This opinion arose from an inquiring attorney who served as the chair of an FINRA arbitration panel. The arbitrator presided over a dispute between customers and a brokerage firm…

Recently, FINRA stated that it is investigating REIT seller Tony Thompson and his broker dealer, TNP Securities LLC, for failing to turn over documents to FINRA. This all comes in the wake of Mr. Thompson already facing significant financial hurdles, most notably the default last year on $21.5 million of private notes that he sold in…

On March 11, 2013, the SEC filed claims against the state of Illinois for securities fraud. The SEC claims that Illinois misled municipal bond investors about the state’s approach to funding its pension obligations and liabilities while it raised more than $2.2 billion in series of bond offerings from 2005-2009. According to the SEC, Illinois failed to inform…

On March 11, 2013, the Municipal Securities Rulemaking Board (MSRB) asked for comments on its proposed changes to its suitability rule that would parallel the revisions FINRA made in its suitability rules in July 2012. MSRB General Counsel Gary Goldsholle said “our goal is to align suitability jurisprudence as much as possible.” Most notably, the MSRB wants…

On March 7, 2013, the SEC unanimously proposed new rules to require certain key market participants to have comprehensive policies and procedures in place surrounding their technological systems. The new rules would provide “more explicit technology and control standards to help ensure that our markets remain resilient against technological vulnerabilities.” The SEC’s proposal, called Regulation SCI,…