The term Blue Sky Law refers to the laws and regulations of the individual states regarding the registration of securities, brokerage firms and investment advisers. While the most well known securities laws are the federal laws, each state has its own rules and regulations. The blue sky laws of each […]
Brokers
Commentary, news and links of interest to financial advisers.
SEC Charges Healthcare Company and Its Founder with Multimillion Dollar Fraud
The Securities and Exchange Commission has charged a New Jersey-based healthcare company and its founder with fraudulently raising nearly $4 million from over 130 investors nationwide through the sale of membership units in the company. According to the complaint, since July 2017, Premier Healthcare Solution LLC and its founder, Josiah […]
SEC Charges California-Based Fraudster With Selling “Insider Tips”
The SEC has charged James Roland Jones of Redondo Beach, California, with perpetrating a fraudulent scheme to sell what he called “insider tips” on the dark web. The dark web allows users to access the internet anonymously and, as such, has often been used to host websites and marketplaces that […]
Are Advisors Too Expensive?
According to a survey conducted by the personal finance website MagnifyMoney, nearly half of U.S. adults think financial advisors are expensive and only for the wealthy, even though almost all who use advisors consider them worth it, according to a new survey. The survey of 1,500 adults found that 30% […]
Review Your WSPs – Subpoenas are Coming
The authority to open SEC investigations, and therefore to issue subpoenas, was expanded under the Obama Administration to the director of Enforcement, rather than solely to the Commission itself. The Director of Enforcement then delegated that authority to various senior officials, including regional and associate directors and specialized unit chiefs. […]
New York Now Requires Investment Advisor Registration
New York State is now requiring Investment Advisor Representatives who work in New York, or who have clients in New York, to register with the New York Investor Protection Bureau and meet certain exam requirements. The new regulation goes into effect February 1, 2021. https://www.jdsupra.com/legalnews/february-1-2021-deadline-mandatory-2498783/
Expungement Rules Changing
New FINRA Expungement Rules Effective in September
The FINRA CRD system, with its BrokerCheck component, has been a thorn in the side of financial professionals since BrokerCheck was created. Expungement is one way to lessen the impact. Form U-4 and Form U-5 were designed to provide important information to regulators, including pending claims and investigations. The Forms […]
Court Orders Uber to Classify Drivers as Employees
In a ruling that may impact the independent BD model, as least in California, Uber and Lyft were ordered by a California court to reclassify their drivers in the state as employees, marking the latest escalation in an ongoing legal battle over a new law impacting much of the on-demand […]
Interactive Brokers With Failing to File Suspicious Activity Reports
Every securities broker is required, by law, to file a report of any suspicious transaction relevant to a possible violation of law or regulation. A transaction requires reporting if it involves or aggregates funds or other assets of at least $5,000, and the broker-dealer knows, suspects, or has reason to suspect that […]
