New NASD Proposal will require more disclosures by retail brokers. The war on analysts is now threatening brokers. In proposing heightened disclosures from analysts, the NASDR has included retail brokers as well. The July proposal, NASD Notice to Members 01-45, broadens disclosure obligations for public appearances by analysts and brokers […]
Brokers
Commentary, news and links of interest to financial advisers.
SEC Position on Mutual Fund Fair Value Released
New Obligations for Mutual Fund Directors? By John M. Baker, Esq. The staff of the Securities and Exchange Commission recently issued an interpretive letter on the obligation of investment companies and their directors to determine in good faith the fair value of the funds’ portfolio securities when market quotations are […]
Attempt to Void Settlement
Arbitration Panel Orders Return of Settlement Payment, and Awards Nothing. WEINBERG v. BEAR STEARNS & CO., INC., NYSE ID #2000-008216 (Los Angeles, 10/18/00): Recently confirmed, this Award presents an unusual outcome in a “two-bites-of-the-apple” scenario. According to the “Case Summary” section of the Award, Israel and Molly Weinberg entered into […]
Broker and Supervisor Liable for Customer Conduct
Failing to Stop Wash Sales and Matched Orders Leads to Disciplinary Proceedings By John M. Baker, Esq. The U.S. Court of Appeals for the D.C. Circuit on Friday affirmed an SEC order finding a registered representative and her supervisor responsible for a customer’s improper trades. Graham v. SEC, No. 99- […]
Suitability and Whisper Numbers under Attack
New Proposals for a New Millennium – Suitability and Whisper Numbers Mark J. Astarita The end of the millennium has further demonstrated the changes that are in store for the brokerage industry in the start of the new millennium. Last month I took a look forward, but since writing that […]
Day Trading Rules for Firms that Promote Day Trading
And unfortunately, for those who don’t – NASD Rules 2360 and 2361 By Mark J. Astarita, Esq. The NASD has announced that as of October 16, 2000, any NASD member firm that is promoting a day-trading strategy will be required to furnish a risk disclosure statement to a non-institutional customer […]
NASD Release on Unregistered Persons and Client Contact
NTM 00-50 Drops 1998 Proposal, Re-affirms NTM 88-50 By John M. Baker, Esq. The NASD posted a Notice to Members concerning marketing activities and supervision of unregistered persons. NASD Notice to Members 00-50 (August 2000). The Notice withdraws a pending rule proposal and provides guidance on the activities of unregistered […]
Internet Touting – SEC Seeks Cease and Desist Order
Cease and Desist Order Sought Against Internet Investor Relations Firm and its President On February 24, 1999 the SEC issued an order to institute cease-and-desist proceedings against a Minnesota-based investor relations company, alleging that it and its president violated the anti-touting provision of the Securities Act of 1933 by publishing […]
SEC Files Complaint against Internet Newsletter
By Mark J. Astarita, Esq. October 27, 1998 – The SEC announced the filing of a complaint in the U.S. District Court for the Northern District of Texas seeking a permanent injunction and civil penalty against the author of an investment newsletter which was published on the Internet. The complaint […]
Death of a Salesman?
Securities law resources, including all rules, and regulations from the NASD, NYSE and SEC, with expert commentary from securities attorneys and legal professionals.
