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FINRA Lawyer Blog



FINRA Is Looking for Additional Disclosure on Up Front Loans to Reps

FINRA Is Looking for Additional Disclosure on Up Front Loans to Reps

It is commonplace in the securities industry for reps to transition from one broker-dealer to another. If the rep is a big producer, it is typical for the hiring firm to offer the rep a "forgivable loan" as an inducement to join. Depending upon the size of the producer's book, the forgivable loan...

FINRA Arbitrators Start Getting Tough With Discovery Abuses

FINRA Arbitrators Start Getting Tough With Discovery Abuses

Two recent FINRA arbitration awards highlight increased focus by FINRA arbitrators concerning discovery abuses by litigants. FINRA's rules require cooperation of the parties in discovery (Rule 12505) and specifically empower the arbitrators to issue sanctions for lack of cooperation, failing to...

Fidelity Wins Against Morgan Stanley in a Non-Protocol Solicitation Case

In Fidelity Brokerage Services LLC v. Morgan Stanley Smith Barney LLC and Brian Wilder (FINRA Arbitration No. 11-03937), a FINRA arbitration panel found against respondents and annexed a 25 page Arbitrators' Report to the Award which excoriated respondents for misappropriation of trade secrets...

FINRA DISCIPLINARY ACTIONS - JUNE 2012 UPDATE

FINRA DISCIPLINARY ACTIONS - JUNE 2012 UPDATE

FINRA issued its summary of disciplinary actions reported for June 2012. Certain actions are noteworthy and are indicative of regulatory trends effecting broker-dealers and registered representatives.
Herskovits PLLC comments on the following regulatory actions:
Net Cap...

Regulators probe bank's role in Facebook IPO

Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its highly publicized stock offering last week, selectively informed clients of an analyst's negative report about the company before the stock started trading.
Rick Ketchum, the head of the...

NY top court weighs claim from investment

French investors urged New York's top court on Wednesday to reinstate their lawsuit over losing $43 million out of $50 million they put into two structured investment vehicles.
The investors claim Barclays Bank, Standard & Poor's and two management companies were complicit in leaving...

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