Publications

“SEC Amends Net Worth Standard For “Accredited Investors”

SEC rules exempt the registration of private securities offerings when sales are made to a limited number of “accredited investors.” One way investors qualify as accredited is by meeting a net worth threshold, alone or […]

Federal Judge Rejects Proposed $285 Million Settlement Between SEC And Citigroup

In a sharply-worded order, a federal judge rejected the proposed $285 million settlement between the Securities and Exchange Commission (“SEC”) and Citigroup over a collapsed $1 billion mortgage-bond fund. Ruling that the boilerplate “neither admit […]

An Outline For Transitioning From Wire-House Broker To Independent Investment Adviser

When one chooses to depart from a wire-house brokerage firm to solely provide independent investment advisory services, having a clear plan to establish the steps to establish your new business is an absolute necessity. Also […]

Banks Face Increasing MBS Litigation Risks

On September 2, 2011, the Federal Housing Finance Agency, as conservator for Fannie Mae and Freddie Mac, sued 17 financial institutions, including Bank of America, Goldman Sachs and Morgan Stanley, in connection with mortgage-backed securities […]

Guerra King Associate Starts Website Tracking Ponzi Schemes

Jordan D. Maglich, an associate at Guerra King P.L., recently launched a website that focuses on tracking Ponzi schemes. The free site, www.ponzitracker.com, is intended to function as an educational resource for those interested […]

FINRA Launched A New Disciplinary Actions Database

On May 16, 2011, the Financial Industry Regulatory Authority (FINRA) launched a new Disciplinary Actions Database, a web-based tool to allow the public to access documents from disciplinary actions issued during 2005 or later. Previously, […]

Where Are Victim’s Rights Under The FCPA?

The Foreign Corrupt Practices Act (“FCPA”) criminalizes bribery of foreign officials and institutes standards governing record-keeping and accounting practices. Enacted in 1977, the FCPA was used sparingly at first, with an average of just […]

Newly-Revised FINRA Discovery Guide Takes Effect May 16, 2011

FINRA has announced that the SEC has approved a revised Discovery Guide (the “Guide”) applicable to customer cases in FINRA securities arbitration cases [1]. These changes, which will apply to claims instituted after May […]

Deadline Approaching For Enhanced Review Of Pre-Existing Outside Business Activities Under New FINRA Rule 3270

In December 2010, FINRA consolidated NASD Rule 3030 and NYSE Rule 346 under the new FINRA Rule 3270, effecting significant revisions to the supervisory requirements of Outside Business Activities which includes broker-dealers’ review of all […]

Digital Printer/Copiers May Cause Data Security Breach

Pursuant to Regulation S-P, financial institutions are required to adopt written policies and procedures to safeguard nonpublic personal customer information. FINRA advises its members that procedures must be reasonably designed to: ensure the security and […]