Massachusetts Securities Regulator Attempts to Clean Up His State

Posted on June 17th, 2016 at 2:27 PM
Massachusetts Securities Regulator Attempts to Clean Up His State

From the Desk of Jim Eccleston at Eccleston Law LLC:

In an effort to better protect investors and the market for securities in Massachusetts, Commonwealth Secretary William Galvin requested information from 241 brokerage firms in order to keep “rogue” brokers out of his state.

Galvin sent letters to the 241 firms in his state in which more than 15% of the current representatives have one or more current disclosure on their record. Galvin pointed out in a new release that, “this exceeds the average percentage found among all Massachusetts-registered broker-dealers.”

The disclosure events that Galvin uses as a metric can involve allegations from disputes headed for arbitration to illegal conduct. The news release did not offer Galvin’s intentions for next steps after reaching out to the 241 firms.

The letters requested from the undisclosed broker-dealers hiring information dating back to the beginning of 2014. His office is focused on the number of representatives who were terminated or placed on heightened supervision during that time.

Galvin asserts that “[his] office diligently works to keep the bad actors out of the Commonwealth … This sweep is intended to establish how the industry is meeting this critical investor protection responsibility of keeping the rogue broker out of the industry.”

The firms must respond to the letters by June 20, 2016. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

August 8, 2022
SEC Files Suit Against Georgia Advisor Over Misappropriation of Client Funds

The Securities and Exchange Commission (SEC) is filing suit against a Georgia-based advisor, Christopher Burns, who allegedly misappropriated client funds.

August 5, 2022
SEC Fines RIA $5.8 Million Over 12b-1 Fee Infractions Tied to Wrap Accounts

The Securities and Exchange Commission (SEC) has imposed a $5.8 million fine against Private Advisor Group over 12b-1 fee violations tied to its wrap fee program. 

August 4, 2022
North Dakota Regulators Seek to Close Down Advisory Firm Selling Crypto and Weed Products

The North Dakota Securities Commissioner’s office is seeking to shut down a small West Fargo-based registered investment adviser (RIA) after its owner allegedly violated state securities laws and improperly took custody of $17.8 million in client funds beginning in 2017.