Posts tagged Securities Litigation blog.

The MSRB responded August 12 to the SEC's initiation of proceedings on proposed conduct standards for Municipal Advisors, filing some amendments to the proposed Rule. The MSRB's Amendment No. 1:

  • Eliminates "includes, without limitation" language from the fiduciary-duty standard in Proposed Rule G-42(a)(ii) in response to SIFMA's comment that it raised unnecessary ambiguity, because a fiduciary duty generally is understood to encompass duties of both care and loyalty. MSRB retained that language in Supplementary Material .02 to be clear that the Rule doesn't purport to ...
Posted in: MSRB

The U.S. Department of Labor ("DOL") recently heard public comment[1] to its proposed regulatory changes implementing a fiduciary duty on any individual receiving compensation for advice tailored to a plan sponsor, participant or individual retirement account owner if that advice seeks to assist the recipient in retirement planning decisions.[2] Currently, a customer does not have a specific private right of action for a breach of contract or a breach of fiduciary duty toward the investment selections within an ERISA plan or an individual retirement account. Put another way ...

Manhattan federal Judge Richard Berman yesterday (August 12) issued a preliminary injunction halting the SEC's administrative action against former S&P executive Barbara Duka, holding the SEC's in-house courts were "likely unconstitutional" based on the way the SEC selects its administrative judges. Earlier this summer, Atlanta federal Judge Leigh Martin May enjoined an SEC administrative insider-trading action against developer Charles Hill for the same reasons. A month later, May enjoined a second SEC action against Atlanta investment-advisory firm Gray Financial ...
Posted in: SEC
The SEC instituted proceedings August 6 to allow additional time - and analysis - of the MSRB's proposed Rule G-42 establishing broad conduct standards for municipal advisors. The Order essentially buys more time for the SEC to consider, and the MSRB to respond to, industry comments on the proposed Rule. Release No. 34-75628; File No. SR-MSRB-2015-03 (Aug. 6, 2015) The MSRB itself took two runs at the Rule proposal during 2014 before submitting the Rule for SEC consideration last April. The usual approval process ran on August 6 thus requiring the "proceedings" to extend the time to ...
Posted in: MSRB, SEC

The Financial Industry Regulatory Authority's disciplinary appellate body (the National Adjudicatory Council or NAC) has revised the Sanction Guidelines used to determine penalties in enforcement cases. The revisions increase the severity of some Guidelines and generally index monetary fines to the Consumer Price Index. Key among the changes, the NAC:

  • Urges "strong consideration" of individual bars or firm expulsion for intentional fraud or cases in which aggravating circumstances predominate
  • Emphasizes more severe sanctions for recidivists;
  • Increases the upper ...
Posted in: FINRA
Jump to Page
Arrow icon Top

Contact Us

We use cookies to improve your website experience, provide additional security, and remember you when you return to the website. This website does not respond to "Do Not Track" signals. By clicking "Accept," you agree to our use of cookies. To learn more about how we use cookies, please see our Privacy Policy.

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.