Broker-Dealers Archives - Page 3 of 4 - Ryan P. Smith Law, PLC

More Brain Droppings – Digital Assets Edition

Posted on January 24, 2023

Comedians are some of our best modern-day philosophers, and as I noted earlier, George Carlin was one of the best of the best. He captured his musings, beliefs, etc. in many books. One of which is Brain Droppings, which I shamelessly stole as an inspiration for my micro-blog on LinkedIn. FTX’s implosion has thrust cryptocurrencies and...

With Apologies to George Carlin

Posted on October 22, 2022

George Carlin was one of the best. Not only did he help Alex Winter and Keanu Reeves save the world, but also put together the authority on what makes baseball different from football. (“Baseball begins in the spring, the season of new life. Football begins in the fall, when everything’s dying.”) He also memorialized his –...

Expungement? Not So Fast, My Friend

Posted on September 2, 2022

This Is The Business We’ve Chosen Associated persons (an “AP”) know all too well that the regulators post a considerable amount of information about their history online – particularly, allegations of misconduct. This information can lead to, among...

Is The Past Prologue? FINRA Permits Remote Inspections . . . For Now

Posted on July 18, 2022

On July 1, FINRA amended Rule 3110.17 to allow broker-dealers to remotely inspect offices of supervisory jurisdiction (OSJs), branch offices and non-branch locations through the end of 2022. The substantive requirements remain unchanged. A broker-dealer must: (1) have procedures for...

Not Quite the “Wild West”

Posted on June 13, 2022

Last week Congress received a bill that would grant the Commodity Futures Trading Commission, not the Securities and Exchange Commission, jurisdiction over the growing digital assets market. The goal is to, as CNBC put it, tame the “’Wild West’ crypto...

FINRA’s Expectations (Reg Notice 22-11)

Posted on May 16, 2022

FINRA issued Regulatory Notice 22-11 in April to remind broker-dealers of their obligations in the sale of alternative mutual funds to their clients. FINRA explained that it published this guidance because of a number of recent enforcement actions it took against firms selling this product. However, upon closer inspection, 22-11 is simply FINRA’s...

FINRA’s April 2022 Disciplinary and Other Actions

Posted on April 30, 2022

As noted recently, FINRA’s monthly publication of its Disciplinary and Other FINRA Actions offers various insight and teaching moments. April’s lesson for the broker-dealer industry: Ignore FINRA at your peril. FINRA Bars for Reps for Failing to Respond Accurately . . . or At All FINRA barred 6 individuals for violations of...

Expungement of Complaints from the CRD

Posted on April 29, 2022

Anyone Can Indict a Ham Sandwich – or Put a Complaint on an AP’s Record [1] From where I sit, the reporting of a complaint against an AP is one of the more controversial aspects of the broker-dealer industry. This is chiefly because the standard for reporting a complaint is extremely low. . . Your Elementary...

Reporting to the Consolidated Audit Trail (CAT)

Posted on April 20, 2022

MENOs and MEORs and MEOFs, Oh My! – A High-Level Overview of CAT Reporting The Consolidated Audit Trail (CAT) is the biggest change – and many would offer, challenge – to regulatory reporting in the broker-dealer industry in some time. Perhaps ever. Accurate reporting requires a blend of regulatory expertise and technical skill...

FINRA’s March Disciplinary Actions

Posted on April 8, 2022

Industry participants know that FINRA’s monthly posting of its "Disciplinary and Other FINRA Actions" offers insight into its enforcement priorities. One can also say it offers various teaching moments. The March edition is no exception. Of interest to me was a Letter of Acceptance, Waiver and Consent (AWC) that FINRA accepted from a broker-dealer to...