The Financial Industry Regulatory Authority (FINRA) has sanctioned three advisors associated with major firms for improperly applying federal small business loan programs initiated due to the Covid-19 pandemic.
In an Investor Alert email sent out on December 14, the U.S. Securities and Exchange Commission (“SEC”) warned of an increase in investment scams related to COVID-19.
The Financial Industry Regulatory Authority (“FINRA”) announced that all in-person arbitration and mediation proceedings will be postponed through the rest of 2020 due to COVID-19.
The COVID-19 pandemic has required a change in business operations throughout the financial industry. What used to be done in-person, now must be done remotely. To help guide advisors, The Financial Industry Regulatory Authority (“FINRA”) recently released an FAQ on virtual business entertainment events and meetings.
The Enforcement Division of the U.S. Securities and Exchange Commission is well aware that national emergencies often lead to increases in fraudulent activity. Speaking at the Securities Enforcement Forum West 2020 conference, SEC Enforcement Division CEO Steven Peikin said that the SEC is drawing on experience gained during previous emergencies, including the financial crisis in 2007-08 and the terror attacked on September 11, 2001, to combat COVID-19 related scams.
COVID-19 has had widespread effects throughout the country, and securities litigation has been no exception. In addition to causing delays and prohibiting many in-person hearings, there has also been a large number of lawsuits related to COVID-19. Although COVID-19 has dominated the headlines, 2020 has produce a couple noteworthy court decisions unrelated to the pandemic.
The COVID-19 pandemic is taking a toll on the hedge fund industry. Barclays Capital Solutions is reporting that between $50 billion and $100 billion may be pulled out of hedge funds by investors in 2020. This year could see the largest withdrawal of investor funds from hedge funds since 2008 when investors withdrew $154 billion.
E*Hedge Securities and its CEO Devon W. Parks have been charged by the U.S. Securities and Exchange Commission (“SEC”) for failing to provide the firm’s books and records to the SEC in connection with an SEC examination. Additionally, the SEC alleged that E*Hedge is not properly registered to be an internet investment adviser.
The Financial Industry Regulatory Authority (“FINRA”) is projecting that its operating revenue will be approximately $868.9 million, which would be roughly equal to FINRA’s 2019 operating revenue. FINRA does expect revenue from regulatory fees to increase in 2020. Meanwhile, operating expenses are expected to increase by 2.8%. If these projections are accurate, FINRA’s expenses will exceed its operating revenue and FINRA may need to tap into its reserves, which currently sit at $210.2 million.
As we all adapt to a new normal in the wake of the COVID-19 pandemic, FINRA has issued its first arbitration award involving a virtual hearing. FINRA ordered Wunderlich Securities to pay $11.4 million to Dominick & Dickerman and one of its executives. The dispute arose from the sale of Dominick & Dickerman’s wealth management business to Wunderlich in 2015.
I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!
A recent analysis by Golsan Scruggs reveals a staggering 231 percent increase in errors-and-omissions (E&O) liability claims among registered investment advisor (RIA)
insurers.
According to a recent analysis, Reg BI-related actions quickly have ascended to the top five issues for FINRA, with fines totaling $6 million in 2023.
The Financial Industry Regulatory Authority (FINRA) has imposed fines and censured independent broker-dealers Osaic Wealth and Securities America for cybersecurity deficiencies that led to hackers accessing the private information of more than 32,000 customers.
