Securities Industry Regulatory Defense
As regulators jockey for position and their scrutiny of the financial markets grows ever more aggressive, industry participants need to be proactive and aggressive in their response to inquiries. On behalf of broker-dealers, registered representatives and investment advisers, we provide comprehensive counsel to defend clients facing "sweep" inquiries, investigations and enforcement proceedings, particularly those that involve allegations of market manipulation, insider trading, record-keeping violations and assorted FINRA rule violations. We regularly appear before FINRA, the SEC, the CFTC, and state agencies. Our founding member’s in-house experience at a registered broker-dealer consistently guides our approach; we are successful when the regulatory scrutiny is concluded without further action and our clients can focus on continued success in their business dealings.
Recent representative matters include:
- RIA Defense (SEC Administrative Proceeding File No. 3-14296). Successfully resolved all deficiencies stemming from an SEC cycle exam, inclusive of deficiencies noted for riskless principal trading disclosure, Form ADV disclosure and Code of Ethics language.
- Registered Representative Defense. We are currently engaged to defend a FINRA investigation concerning allegations of commission-sharing with an unregistered person. We have successfully resolved a multitude of FINRA investigations by entering into an Acceptance, Waiver and Consent, including investigations concerning FINRA Rule 8210 violations, and books and records violations.
- SRO Sweeps. We are currently engaged to represent a prominent broker-dealer in SRO "sweep" inquiries and investigations concerning trading issues and potential SRO rule violations.
- Wells Submission. The NYSE intended to charge our client with a variety of sales practice violations in connection with a retail customer. After filing a detailed Wells Submission, with voluminous supporting documentation, the NYSE declined to prosecute our client and the investigation immediately ceased.
- Issuer Defense. We represented a public company in a complex delisting proceeding before the American Stock Exchange.