I. Starting a Broker-Dealer-
Becoming an owner of a broker-dealer (BD) is a time-consuming and expensive endeavor. Although the United States Securities and Exchange Commission (SEC) requires BD registration pursuant to the...more
7/18/2023
/ Application Fees ,
Broker-Dealer ,
Commodities ,
Commodity Trading Advisors (CTAs) ,
CPOs ,
Ethics ,
Financial Industry Regulatory Authority (FINRA) ,
Hedge Funds ,
IARD ,
Investment Adviser ,
Licenses ,
Registered Investment Advisors ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act
The bane of every start-up company is the never-ending quest to raise capital for its operations. Newly (and not so new) formed companies seemingly would do anything to raise funds. Over the course of many decades, these...more
7/5/2023
/ Acquisitions ,
Brokers ,
Division of Trading and Markets ,
Early Stage Companies ,
Entrepreneurs ,
Financial Industry Regulatory Authority (FINRA) ,
Mergers ,
NASAA ,
NASD ,
Registration Requirement ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Startups ,
Venture Capital
With the ever-increasing acceptance of marijuana as a legitimate treatment for a number of medical conditions, a newfound interest in the use of psychedelics as a form of medical treatment is gaining traction once again. ...more
Within the private equity fund arena, there are various well-recognized categories of private equity funds. Those funds include, among others: venture capital funds; leveraged buyout or merchant banking funds; hedge funds;...more
8/20/2019
/ Dodd-Frank ,
Hedge Funds ,
Investment Adviser ,
Investment Companies ,
Investment Funds ,
Investment Management ,
Investors ,
Popular ,
Private Equity ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act
In a unanimous ruling that narrows the class of would-be whistleblowers under the Dodd-Frank Act, the U.S. Supreme Court held that the statute requires whistleblowers to first report potential securities violations to the SEC...more
2/23/2018
/ Anti-Retaliation Provisions ,
Digital Realty Trust Inc v Somers ,
Dodd-Frank ,
Employer Liability Issues ,
Hiring & Firing ,
Internal Reporting ,
Retaliation ,
Sarbanes-Oxley ,
SCOTUS ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Whistleblower Protection Policies ,
Whistleblowers
The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) has released its 2018 examination priorities, an annual report outlining the areas of the securities industry its examiners...more
The SEC recently put out an Investor Bulletin on wrap fees. Although this guidance is steered toward consumers, there are lessons to be learned by firms who offer such programs.
The SEC specifically posed the question of...more
The SEC recently upheld a statutory disqualification that FINRA imposed where the representative filed a false U-4 and falsely answered compliance questionnaires. It appears as though the registered representative failed to...more
The SEC recently announced an enforcement initiative that will target retail investor harm. The agency’s task force will use data analytics to find widespread problems regarding fee disclosures and unsuitable investment...more
In a ruling that severely hampers one of the SEC’s most powerful enforcement tools, the U.S. Supreme Court held on June 5 that the disgorgement authority of the U.S. Securities and Exchange Commission is subject to a...more
The SEC recently announced that it charged a former broker with knowingly or recklessly trading unsuitable investment products for five customers and taking $170,000 for one of those customers. These charges follow a prior...more
At Fox Rothschild LLP, we have a wealth of experience in creating and forming broker-dealers, registered investment advisers, commodity entities and various hedge funds. Over the years, our strategy has been to work with our...more
4/25/2017
/ Broker-Dealer ,
CFTC ,
Commodities ,
Conflicts of Interest ,
Cybersecurity ,
Employee Retirement Income Security Act (ERISA) ,
Financial Industry Regulatory Authority (FINRA) ,
Futures ,
Investment Adviser ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC)
The SEC has recently issued an Investor Alert regarding commentary provided about investors from what appear to be independent sources. It turns out, many of those independent sources are not independent at all. Instead, they...more
The SEC recently announced fraud charges, and sought an emergency asset freeze against a pastor who was accused of exploiting church members, retirees, and laid-off autoworkers. Apparently, he mislead these people by...more
Many people see the green of cannabis as a way to the pot of gold at the end of the rainbow. If you are going to invest in a legal (at a state level) cannabis business, you need to make sure that you know what you purchase....more
The SEC recently published its latest investor bulletin. The SEC publishes these from time to time to bring awareness to the investing public on certain issues....more
According to a recent report of the Eversheds Sutherland firm, 2016 was a banner year for FINRA-assessed fines. FINRA collected a record $176 million in 2016. So what gives?
The increase in fines was attributable to two...more
The SEC recently issued regulatory guidance for robo-advisors.
This guidance focuses on what robo-advisors must do to meet their disclosure obligations. Among other things, the SEC has recommended robust disclosures in...more
The Office of Compliance Inspections and Examinations (or OCIE) recently issued a Risk Alert that identified the five most frequent compliance topics that arising from OCIE examinations. These compliance topics include the...more
In its never-ending effort to thwart senior investor fraud, FINRA recently proposed a new rule to the SEC. This proposal would require member firms to obtain the name of a trusted contact person for the customer’s account....more
That is the question that the SEC has essentially posed for registered investment advisers in a National Exam Program Risk Alert. In doing so, the SEC has stated that it will be “examining compliance oversight and controls of...more
The SEC has repeatedly included issues around social media in its annual exam priorities for investment advisers. With the SEC’s recent release of a final rule on the subject, the SEC has taken that “exam priority” to the...more
Every time that I start a FINRA arbitration, I find myself having the same internal debate; did we pick the right person to serve as the arbitration chair. Unfortunately, you will not know the answer to that question until...more
The SEC recently created a new position associated with cybersecurity; senior adviser to the chair for cybersecurity (Christopher R. Hetner). Mr. Hetner has an extensive background in information technology and, in...more
If you thought the SEC and FINRA were serious about elder issues, welcome to the Alabama, Indiana and Vermont. Each has focused on elder abuse issues.
These states will have mandatory reporting to state officials in...more