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Blog Posts in 2011

FINRA Board of Governors Discuss Upcoming Rule Proposals

The FINRA Board of Governors has asked for industry comment on proposed rule amendments it intends to submit to the SEC. Some of the topics include: Debt Research Conflicts of Interest: Modified ...
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YieldPlus Fund Fallout Continues

Another settlement has come out of the fracas surrounding the 2007-2008 collapse of the Charles Schwab YieldPlus Fund. Under the terms of the most recent settlement, Randall Merc, a former president ...
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FINRA Sanctions Eight Member Firms and 10 Individuals for Selling Troubled Private Placements

On November 29, 2011, FINRA announced that it had fined eight of its member firms and ten individuals for selling inappropriate private placement securities. According to the Notice , the firms and ...
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More FINRA Claimants Choosing Non-Industry Panel of Arbitrators.

The New York Times website has an article today discussing the recent increase in FINRA claimants choosing non-industry arbitrators to oversee their arbitration. Previously, for claims eligible for a ...
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FINRA Issues Investor Alert: Companies in Bankruptcy Rarely Make Blockbuster Investments.

FINRA's latest Investor Alert warns investors of the risks of investing in companies that have filed for Chapter 11 bankruptcy. Specifically, the Alert addresses misleading and fraudulent ...
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On the U.S. Supreme Court Docket: Tolling Possible Under SEA § 16(b)?

The 2011-2012 Supreme Court term is poised to consider several interesting topics: Without a warrant, can police track a suspect by sticking a GPS on his vehicle? Is an FCC rule on "fleeting ...
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Historic Ruling From Second Circuit: FINRA Cannot Sue to Collect Fines

On October 5, 2011, the Second Circuit issued an enormous decision regarding FINRA's enforcement powers over its member persons and entities. In the case of Fiero v . Financial Industry Regulatory ...
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FINRA Issues New Investor Alert: Public Non-Traded REITs-Perform a Careful Review Before Investing

Yesterday, FINRA issued new Investor Alert warning investors to be wary of the risks surrounding the "publicly registered non-exchange traded real estate investment trust (REIT)" or ...
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Second Circuit Rules on Contested FINRA Jurisdiction Issue

On September 22 nd , 2011, the Second Circuit handed down its decision in UBS Financial Services Inc. v. West Virginia University Hospitals Inc., Docket No. 11-235-cv (Sept. 22, 2011) and, in so ...
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RESEARCHING YOUR BROKER: TIPS AND TOOLS FROM FINRA AND THE SEC

Choosing the person with whom to trust your money can be a difficult decision. There are many different options when it comes to investment professionals and great variation when it comes to ...
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FINRA Announces Fines Issued To Five Broker-Dealers for Charging Customers Commissions Mischaracterized as Ancillary Fees

On September 7, 2011, FINRA announced that it had fined five broker-dealers for charging customers additional commission charges that were “mischaracterized” on trade confirmations as ...
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FINRA Issues Investor Warning About Chasing Returns in Non-Traditional Investments

FINRA recently issued an investor alert warning investors about selling traditional, lower-risk investments in order to invest in higher-risk, highly complex investments such as high-yield bonds, ...
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FINRA, SEC Warns Investors About Investing in Structured Notes with Principal Protection.

The SEC and FINRA have issued an Investor Alert warning investors about investing in structured notes with principal protection. The Alert warns that these types of investments, despite their ...
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FINRA Issues Warning on Gold Stock Scams

On August 24, 2011, FINRA issued a new Investor Alert titled "Gold" Stocks—Some Investments Mine Your Pocketbook.” With the price of gold recently hitting an all-time high, the ...
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