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Eccleston Law Blog

Examining Firm Liability for Third-Party and Client Misdeeds

June 24th, 2024 at 12:01 PM
FinancialPlanning.com recently asked, “How much liability can a firm have for the actions of third-party vendors or clients?” This question has surfaced in various legalcontexts, most recently in a lawsuit against Wells Fargo, which faces allegations of failing to detect a $300 million Ponzi scheme perpetrated by a client.
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Merrill Lynch Increases Referral Fees to Recruit Veteran Advisors

June 20th, 2024 at 4:29 PM
Merrill Lynch has begun enhancing its recruitment efforts- now offering headhunters a 10 percent referral fee, up from 8 percent, for successful placements. This increase targets 34 specific markets, including key locations like Los Angeles and certain rural areas outside the Bank of America footprint in an attempt to attract veteran advisors.
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CFTC Joins SEC in Probing Wall Street Banks Over Non-Disclosure Agreements

June 19th, 2024 at 10:18 AM
The Commodity Futures Trading Commission (CFTC) is investigating major Wall Street banks to determine if their non-disclosure agreements (NDAs) are preventing potential whistleblowers from reporting violations.
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SEC's Private Fund Advisors Rules Create Challenges

June 18th, 2024 at 1:28 PM
Registered Investment Advisors (RIAs) are facing a pivotal moment as they gear up to comply with the Securities and Exchange Commission's (SEC) Private Fund Advisers Rules, with the most stringent requirements set to take effect later this year and early in 2025.
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Accredited Investor Standards Under Review Amid Growing Inflation Numbers

June 17th, 2024 at 11:26 AM
The criteria defining who qualifies as an "accredited investor" has not seen inflation adjustments for four decades, resulting in a significant increase in households meeting this definition.
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Wells Fargo Fires Employees for Faking Work

June 14th, 2024 at 11:39 AM
Wells Fargo & Co. recently terminated over a dozen employees following an investigation into allegations of fake work activities.
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FINRA Struggles to Revise Outside Business Rules

June 13th, 2024 at 1:31 PM
The Financial Industry Regulatory Authority’s (FINRA) attempt to update its rules on advisors’ outside business activities has stalled, according to Robert Colby, FINRA's chief legal officer.
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Tax Court Denies Madoff Victims $8.2 Million Deduction

June 12th, 2024 at 2:46 PM
Victims of Bernie Madoff's Ponzi scheme, Christopher and Silvana Pascucci, cannot claim an $8.2 million tax deduction for their investment in life insurance premiums.
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Merrill Lynch Fined for Supervisory Failures

June 11th, 2024 at 11:17 AM
Merrill Lynch has reached an $825,000 settlement with FINRA over allegations of inadequate supervision concerning retail orders and recordkeeping practices dating back to 2017.
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SEC Issues Risk Alert to Broker-Dealers Regarding Examination Criteria

June 10th, 2024 at 1:27 PM
The Securities and Exchange Commission (SEC) has issued a new Risk Alert, advising broker-dealers that their prior disciplinary history, financial stress indicators, and media reports could make them likely candidates for an examination.
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