Eccleston Law Blog

SEC Updates Marketing Rule Guidance to Clarify Extracted Performance and Portfolio Metrics

March 21st, 2025 at 2:20 PM
The Securities and Exchange Commission (SEC) has issued updated guidance on its marketing rule, addressing industry concerns regarding net performance requirements, extracted performance, and portfolio characteristics.
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Stifel Loses Raiding Case, Ordered to Pay Over $7 Million in Legal Fees

March 20th, 2025 at 3:59 PM
Stifel Financial has lost its raiding and breach-of-contract claim against a group of advisors who left its Indianapolis office to establish their own firm.
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FINRA Enforcement Actions in 2024: Fines Drop But Cases Increase

March 19th, 2025 at 10:26 AM
The Financial Industry Regulatory Authority (FINRA) imposed $59 million in fines in 2024, reflecting a 35 percent decrease from the previous year, according to an analysis by Eversheds Sutherland.
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Advisor Ordered to Pay $17.7 Million Over unsuitable REIT Sales

March 18th, 2025 at 3:33 PM
A FINRA arbitration panel has ordered former advisor Mark Sam Kolta to pay nearly $17.7 million in damages, plus interest and costs, to his former firm, National Securities, following allegations of breach of contract and unjust enrichment.
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FINRA Disciplinary Actions Rise for the First Time Since 2016

March 17th, 2025 at 11:51 AM
The Financial Industry Regulatory Authority (FINRA) increased its enforcement actions in 2024, marking the first rise in disciplinary cases since 2016, as reported by AdvisorHub.
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Apex Clearing to Pay $3.2 Million in FINRA Settlement Over Securities Lending Violations

March 14th, 2025 at 2:11 PM
Apex Clearing, the clearing arm of Apex Fintech Solutions, has agreed to pay $3.2 million to settle FINRA allegations that it failed to ensure customers received compensation for lending their securities.
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Congress Considers Expanding the Accredited Investor Definition

March 13th, 2025 at 2:30 PM
A recent congressional hearing examined potential reforms to the accredited investor definition, a critical threshold determining who can participate in private market investments.
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GPB Capital Investors May Receive Some Compensation Under Proposed Distribution Plan

March 12th, 2025 at 11:59 AM
GPB Capital Holdings investors have not received returns on their investments since 2018. According to InvestmentNews, after years of litigation, a court-appointed receiver has submitted a plan to return funds to the 17,000 investors who purchased $1.8 billion in GPB limited partnerships.
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Former CNBC Analyst Pleads Guilty to $2.7 Million Securities Fraud Scheme

March 11th, 2025 at 2:04 PM
James Arthur McDonald Jr., a former financial advisor and frequent CNBC guest analyst, has agreed to plead guilty to securities fraud, admitting to defrauding investors out of at least $2.7 million, as reported by ThinkAdvisor. The felony charge carries a maximum sentence of 20 years in federal prison.
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Wells Fargo and Merrill Lynch Settle SEC Charges Over Cash Sweep Program Policies

March 10th, 2025 at 12:19 PM
The Securities and Exchange Commission (SEC) has announced settlements with Wells Fargo Clearing Services LLC, Wells Fargo Advisors Financial Network LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated over allegations that they failed to implement proper policies and procedures for their cash sweep programs.
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LATEST NEWS AND ARTICLES

October 13, 2025
Morgan Stanley Cuts Advisor Deferrals in 2026 Compensation Plan, Boosting Advisor Payouts

Morgan Stanley Wealth Management announced a significant change to its 2026 compensation plan, cutting advisor deferral rates by half while keeping total pay and grid structures largely unchanged.

October 10, 2025
Former Two Sigma Quant Researcher Faces Fraud Charges Over Manipulated Models

Federal prosecutors and the Securities and Exchange Commission (SEC) have filed parallel actions against Jian Wu, a former quantitative researcher at Two Sigma Investments, alleging he secretly manipulated algorithmic trading models to boost his own compensation by millions of dollars.

October 9, 2025
Former Merrill Lynch Advisors Fight Allegations of Corporate Raid

A dozen former Merrill Lynch advisors who launched their own firm, OpenArc Corporate Advisory, in Atlanta are pushing back against accusations that they orchestrated a “pre-meditated corporate raid.”