Posts from May 2014.

The Alabama Court of Civil Appeals released a slip opinion on May 16, 2014 addressing enforcement of a nonsolicitation agreement against a licensed securities broker. See G.L.S. & Associates, Inc., and G.L. Smith & Associates, Inc. v. Keith Rogers, No. 2130322 (Ala. Civ. App. May 16, 2014) (Slip Opinion). The defendant (Rogers) worked for a securities firm (GLSA) and had an employment agreement that contained a nonsolicitation provision which prohibited Rogers from soliciting GLSA's clients for a period of two years after termination of employment. Rogers resigned from his ...

Posted in: FINRA

The SEC's new MA Rules become effective July 1, 2014, 17 CFR 240.15Ba1-1 through 1-8 and 15Bc4-1. Required by Dodd-Frank § 975, the Rules were adopted last year, but the SEC postponed their implementation from January to July 1. Rel. No. 34-71288 (stayed January 13 until July 1, 2014); Final Rule, Rel. No. 34-70462, here:

The Rules implement a registration regime and impose a fiduciary duty upon any person deemed a Municipal Advisor. The Rules are very specific about which circumstances and relationships impose that duty and what ...
Posted in: Dodd-Frank, SEC
FINRA operates the Central Registration Depository ("CRD") - the central, publicly-accessible licensure and registration information source on the US securities industry. Industry members seek to remove - "expunge" - unfounded or merely negative information from their CRD records, while regulators seek to keep a full and accurate record available to the public. For both public claimants and industry defendants, however, CRD expungement became a bargaining chip in securities litigation: Claimants could add individual respondents to increase settlement leverage and ...
Posted in: FINRA
Tags: CRD, finra
On April 24, 2014, the Financial Industry Regulatory Authority (FINRA) announced that its board of governors had approved rules requiring that firms to run background checks on new hires, whether new brokers or transfers, to verify the information on their U4s. Amended FINRA Rule 3110, the supervision rule, will also require firms to establish procedures for verifying information on their representatives' U4s. FINRA itself will search public financial records and criminal records for registered representatives and registered individuals who have not been fingerprinted in ...
Posted in: FINRA
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