These Two State Regulators Serve as Financial Markets’ Primary First Responders

Posted on April 26th, 2023 at 1:35 PM
These Two State Regulators Serve as Financial Markets’ Primary First Responders

From the desk of Jim Eccleston at Eccleston Law 

Two state securities regulators frequently stand out as “First Responders.” 

While the collapse of Silicon Valley Bank and First Republic’s tumble has sent shockwaves across financial markets, a Massachusetts-based securities regulator was among the first to initiate an investigation of First Republic. 

Massachusetts Secretary of State William Galvin launched an investigation into potential inside trading at First Republic, which has branch offices in Massachusetts. Galvin cited his concerns regarding allegedly risky lending and business practices employed by First Republic. Also, Galvin noted that First Republic’s receipt of $30 billion from several large banks does not serve to ease concerns. Galvin’s First Republic investigation is an example of how state regulators can serve as first responders to potential investor harm before the SEC or FINRA become involved.

Another prominent state regulator is the director of the Alabama Securities Commission, Joseph Borg, who previously served as president of the North American Securities Administrators Association (NASAA). According to Borg in a recent interview, “We’re usually the first ones on the scene when it comes to retail investors. We see [malfeasance] from the ground level. That doesn’t mean we understand all the nuances. But we see there are issues and we can bring them to the forefront and where needed combine the resources of the 53 U.S. jurisdictions.” State securities regulators, such as Borg, were instrumental in designing a plan to strengthen Robinhood’s customer support after the company agreed to a $10.2 million settlement with federal regulators in 2022. “We wanted to make sure they’re progressing on their improvements rather than issuing an order first”, Borg said. While Borg is expected to retire next month, Amanda Senn is set to serve as Borg’s successor.


Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.


Tags: eccleston, eccleston law

Return to Archive



I am so glad I found you! Wow! I appreciate your help, concern and guidance.



May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.


May 15, 2024
NFA Issues Order Against Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.