When the SEC finalizes rule proposals, the countdown begins on compliance deadlines for investment advisors and brokers. But the agency faces its own ticking clock when it comes to final proposals, thanks to next year’s elections. Congress can kill regulations through a parliamentary procedure called the Congressional Review Act, or...
Finra arbitrators ordered a former financial advisor to pay more than $600,000 for recommending risky options strategies for a group of Alabama investors. The investors filed an arbitration claim in July 2021 against Norman Edgar McNeill and McNeill Financial Advisory. The causes of action included unsuitability; negligent misrepresentation and suppression;...
Attorneys who represent investors in actions against brokerages and registered representatives are hopeful that expungement reforms Finra enacted late last week will make it harder for reps to clear their records of disputes. The Financial Industry Regulatory Authority Inc. on Friday adopted amendments to its expungement procedures, which allow reps...
State regulators and securities plaintiffs’ attorneys continue to resist a Finra plan that would allow brokerages to conduct remote supervision of their registered representatives. In March, the Financial Industry Regulatory Authority Inc. released a proposal that would treat a home office from which a broker is supervising other reps as...
The SEC has filed charges against a registered representative for allegedly stealing more than $2 million from a client and using the proceeds to finance the financial advisor’s personal spending. In a complaint filed Friday in the U.S. District Court for the Southern District of New York, the Securities and...
An SEC proposal to eliminate conflicts of interest in financial advisors’ use of technology that predicts investor behavior is raising concerns about how it will work with Regulation Best Interest. A split Securities and Exchange Commission voted 3-2 Wednesday to release a proposal for public comment that would require brokerages...
Brokers and investment advisors would have to remediate conflicts of interest related to interactions with investors conducted through artificial intelligence, predictive analytics and similar technology under a proposal released Wednesday by the SEC. By a 3-2 vote, the Securities and Exchange Commission approved releasing a 243-page proposal for public comment...
More than a decade ago, something extraordinary happened at a hearing of the House Financial Services Committee. One witness pretty much torpedoed legislation that had been written by the panel’s chair. The pending bill would have established a self-regulatory organization to provide oversight of investment advisors. That meant an entity...