The Financial Industry Regulatory Authority (FINRA) works to hold brokers accountable to their customers. One way they achieve this goal is by enforcing the rules and regulations issued by the United States Securities and Exchange Commission (SEC). But what happens if...
Securities Litigation
Will FINRA try to regulate crypto?
The Financial Industry Regulatory Authority (FINRA) is prepping to release its 2022 examination priorities. Some notable priorities thus far include how firms are engaging social media influencers to help market their brands, a tightening of rules around options...
SEC accuses electric car company of defrauding investors
The United States Securities and Exchange Commission (SEC) recently accused founder and former CEO Trevor Milton of Nikola, an electric car company, of securities violations. The government agency claims Mr. Milton used media appearances to provide investors with...
Mortgage broker defeats SEC: 3 things to learn
Insider trading cases generally involve using confidential information to help guide decisions to trade on the stock exchange. This practice is illegal and can come with serious penalties like monetary fees and even the potential for imprisonment. We have seen...
FINRA goes after broker for outside business dealings
Brokers are in the business of getting good deals for their clients. Sometimes, those deals may involve private companies. Moving forward with these deals can be beneficial for all involved if the broker follows the rules. The Financial Industry Regulatory Authority...
A tweet that could lead to prison. SEC goes after man for misusing Twitter.
Misuse of social media is not a new issue. The possibility of social media postings leading to allegations of criminal wrongdoing — also not a new idea. What is relatively new is the idea that the United States Securities and Exchange Commission (SEC) would go after a...
How serious are violations of supervisory and fair dealing rules?
The Financial Industry Regulation Authority (FINRA) requires those who provide a recommendation for a transaction or investment strategy involving a security to a client have reasonable basis for the advice. The organization states this basis should be the result of...
Will the feds push for more broker accountability?
Those who operate in the financial planning and wealth management sector need to follow an array of regulations. The standards that guide these professionals can vary depending on their title — making compliance even more complicated. Financial planners, for example,...
What will the SEC do about cryptocurrency?
The United States Securities and Exchange Commission (SEC) is still trying to figure out just how to handle cryptocurrency. Is it a security subject to regulation or something else? If it is subject to regulation, what will those regulations look like and how will...
Will FINRA return to in-person inspections?
The Financial Industry Regulatory Authority (FINRA), like every other industry in the country, was forced to make some changes as a result of the COVID-19 pandemic. According to the regulator, although it remains fully operational it is using remote work capabilities...