Tag: Broker-dealers

Gibson Dunn Builds Case Against SEC’s Broker-Dealer Enforcement  | Law.com

In their FOIA lawsuit, filed in mid-June, Walker asked for internal SEC communications related to Almagarby and a handful of similar cases, all wins for the agency, after it failed to respond to their original request. “Under the SEC’s extraordinarily broad legal theory in these cases, any business that regularly buys and sells securities must register as a ‘dealer,’” Walker…

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SEC Pursues ‘Dealer’ Definition Expansion, to Industry’s Dismay

The Securities and Exchange Commission is finalizing a rule that, as proposed, would clarify and expand the definition to include some financial firms—such as high-frequency traders—that have traditionally not been considered a dealer. Industry advocates say the agency also is using recent lawsuits against penny-stock flippers to go further than it’s likely to do in its rulemaking—to stake out the…

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SEC Creating Searchable Database of Bad Brokers — Think Advisor

The Securities and Exchange Commission is creating a website that will contain “a searchable database of individuals” who have been barred or suspended as a result of federal securities law violations, the agency’s chairman, Jay Clayton, said Wednesday. “This resource is intended to make the prior actions of repeat offenders and fraudsters more visible to investors,” Clayton said at the…

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SEC Enforcement Chief: Reporting Suspicious Activity ‘Not Optional’ for BDs — ThinkAdvisor

Securities and Exchange Commission Enforcement Chief Andrew Ceresney told broker-dealers Wednesday that compliance with the Bank Secrecy Act “is not optional,” and that a BD’s failure to file a required suspicious activity report (SAR) “is, by itself, a basis for enforcement action.” via SEC Enforcement Chief: Reporting Suspicious Activity ‘Not Optional’ for BDs — ThinkAdvisor

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Sutherland Study Finds Benefits for Brokers, Firms to Litigate Against SEC and FINRA

A new study by Sutherland Asbill & Brennan analyzing litigated disciplinary proceedings brought by the SEC and FINRA against broker-dealer firms and registered representatives shows that it often pays for defendants to litigate, rather than settle.  The authors of the study, Brian L. Rubin and Christian J. Cannon, analyzed cases from October 2007 through September 2008 where firms and individuals…

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