Across the country, a variety of commercial, government and nonprofit entities regularly outsource tasks to third parties. Whether to cut the costs of having employees do the work or to subscribe to the idea that cheaper is always better, when broker-dealer firms...
Securities Law And Litigation
COVID-19 inspires new twists on securities fraud schemes
Unfortunately, financial greed drives some people to commit illegal fraud in the offering, registration or sale of securities. At our law firm, we advocate for investors with financial losses who have purchased securities tainted by untruthful information that falsely...
Best execution responsibilities of retail brokers
Many individuals use low- or no-commission brokers to purchase and sell their investments in various securities. While this seems like a good deal – and it probably is – federal regulators require discount brokers to diligently monitor whether their customers’...
Retail investors at risk of financial loss from securities fraud
Owners of small, family businesses and individuals at various levels of wealth often invest their money in stocks to secure their futures and protect their families. The unfortunate truth is that these retail investors face some risk of becoming the victims of...
Quarantined older investors at increased risk of investment fraud
Older investors have heightened vulnerability to investment fraud and other kinds of financial exploitation during social isolation, which increases the chances of cognitive decline, warns a new investor bulletin from the U.S. Securities and Exchange Commission (SEC)...
New investment adviser marketing rule on the horizon, part 2
In part 1 of this post, we shared that the Securities and Exchange Commission’s (SEC’s) has adopted a final rule modernizing the investment adviser marketing and solicitation rules – calling the new regulation the “marketing rule.” In part 1, we describe the...
SEC to issue new marketing rule for investment advisers, part 1
The Securities and Exchange Commission (SEC) has released a final rule change that will modernize the regulation of investment adviser advertising, which has not been done since 1961. The agency is calling it the “marketing rule.” Of course, over the decades...
From suitable investment advice to that in the best interest of retail clients
Recently, we discussed the relatively new Regulation Best Interest (Reg BI) promulgated by the Securities and Exchange Commission (SEC) that imposes on broker-dealers an enhanced standard of care toward their retail customers. Since June 30, 2020, broker-dealers and...
Regulation Best Interest: What does it do for investors?
June 30, 2020 was the deadline for compliance with new standards of conduct for broker-dealers in their professional relationships with retail clients. To that end, the Securities and Exchange Commission (SEC) adopted new regulations, including Regulation Best...
Investors hurt by broker fraud may consider FINRA arbitration, part 2
In part 1 of this post, we talked about the role of the Financial Industry Regulatory Authority (FINRA) as a forum where investors can arbitrate claims of negligence, improper investment or fraud against their brokers or brokerage firms for problematic investments...