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Recent Posts in FINRA News Category

Schwab Loses Lawsuit; FINRA Enforcement Action to Proceed

Last week, a federal judge for the Northern District of California tossed a lawsuit filed by Charles Schwab against FINRA in a dispute over new language added to Schwab's customer account ...
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FINRA Proposes Rule Change to Raise Simplified Arbitration Cap

FINRA has filed a proposed rule change with the SEC, proposing to amend its Customer and Industry Codes of Arbitration Procedure to raise the limit for simplified arbitration from $25,000 to $50,000. ...
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FINRA Proposes BrokerCheck Expansion

FINRA is seeking comments on whether it should expand the information available on its BrokerCheck system . Since 1988, FINRA's BrokerCheck system has allowed investors to retrieve basic ...
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FINRA Issues Investor Alert On the Importance of Understanding Brokerage Statements

FINRA issued an investor alert this week reminding investors to carefully review their brokerage statements and trade confirmations. The alert breaks the statements down by segment, carefully ...
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FINRA: Schwab's Waivers Are Against the Rules.

Today, FINRA filed a disciplinary complaint against Charles Schwab & Co. for changes made to its customer account agreements. In October 2011, Schwab amended its agreements to include a Waiver of ...
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FINRA: Email Hacking Endangers Brokerage Accounts.

Email hacking has become increasingly common in recent years. So much so that most people either have been victims of this or know someone who has. These hackers somehow obtain and use your email ...
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REIT Private Placement Awards Continue to Roll In. Actual Recovery in Remains in Doubt.

A FINRA arbitration panel recently awarded a group of 40 investors $9.1 million in compensatory damages and attorneys fees arising out of the sale of failed non-traded private placements. The award ...
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Proposed FINRA Rule Change Seeks to Expressly Preclude Certain Collective Actions

FINRA recently filed a proposed rule change with the SEC, proposing to amend Rule 13204 of its Industry Arbitration Code. Rule 13204, which precludes class action claims from being arbitrated before ...
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WSJ: The Risks of TIC Real Estate Investments.

The Wall Street Journal online has an interesting article this week on securities often called tenancies-in-common, or "TICs," TICs are fractional-ownership type investments where several ...
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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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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, 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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