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On November 17, 2025, the SEC Division of Examinations announced in 2026 priorities.  This blog post summarizes certain sections of the SEC’s release. I. Investment Advisers A. Adherence to Fiduciary Standards of Conduct B. Effectiveness of Advisers’ Compliance Programs C. Never-Examined Advisers and Recently Registered Advisers II. Investment Companies (Mutual Funds, ETFs, etc) III. Broker-Dealers…

The Financial Industry Regulatory Authority (FINRA) recently sanctioned First Trust Portfolios L.P., a Wheaton, Illinois-based securities wholesaler, imposing a $10 million fine for serious violations involving non-cash compensation and misleading reporting. This enforcement highlights underscores the importance of strict compliance with gift and entertainment rules in the securities industry.       I.            Background First Trust has operated as a wholesale distributor…

FINRA recently released Regulatory Notice 22-18, reminding firms about their obligation to supervise registered representatives to prevent falsification of digital signatures. FINRA’s guidance comes on the heels of multiple investigations concerning instances when registered representatives forged or falsified client signatures on account transfer documentation or on disclosure forms, “acknowledging a products alignment with the customer’s…

Most financial industry professionals are familiar with the prohibition on “selling away,” the somewhat ambiguous term contemplated by FINRA Rule 3280. FINRA Rule 3280 states that, “[n]o person associated with a member shall participate in any manner in a private securities transaction except in accordance with the requirements of this Rule.” Among other things, the…

We are all painfully aware of the recent volatility in the markets, which has not gone unnoticed by the SEC. On March 14, 2022, the Staff of the Division of Trading and Markets stated that “broker-dealers should collect margin from counterparties to the fullest extent possible in accordance with any applicable regulatory and contractual requirements.”…

A New York couple, Ilya Lichtenstein, 34, and his wife, Heather Morgan, 31, were recently arrested in connection with the theft of approximately 120,000 Bitcoin from the Bitfinex exchange in 2016. The couple was charged however, not with computer hacking and theft but of violating 18 U.S.C. § 1956(h) (Money Laundering Conspiracy) and 18 U.S.C.…