Should Broker-Dealers Self-Report?

more+
less-

Law360, New York (May 19, 2010) -- If a firm discovers a problem, should it self-report (assuming no regulatory obligation to do so)? Will it receive sufficient credit for self reporting or is it just ensuring that it will be the subject of an enforcement action?

In an attempt to answer these questions, the Securities and Exchange Commission in January 2010 announced revisions to its Enforcement Manual and an initiative aimed at encouraging cooperation in investigations or voluntarily disclosure of past or potential violations of the securities laws by companies and individuals.[1] In an effort to make its program more effective and efficient, the SEC’s Director of the Division of Enforcement announced these initiatives as “potential game-changers” for its enforcement and investigatory goals.

Previously, in November 2008, FINRA released its policies through Regulatory Notice 08-70, which stated that “extraordinary cooperation” in FINRA investigations would be considered in determining the level of sanctions imposed or disciplinary action taken for violations. The Notice described the types of cooperation FINRA would consider as worthy of credit. At that time, FINRA stated that its goal was to “increase transparency as to the basis for sanctions imposed in cases and to encourage firms to root out, correct and remediate violative behavior.”

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Written by:

more+
less-

Sutherland Asbill & Brennan LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×