NASAA Opposes Account Transfer Interference Joins NASDR in supporting customer right to transfer account, regardless of broker/firm disputes By John M. Baker, Esq. [Ed. This post is from 2001 and is presented for historical purposes.] When registered representatives change their brokerage firms and try to take their customers with them, […]
Compliance
NASD Issues Investor Alert on Stretch IRAs
By Mark J. Astarita, Esq. August 10, 2001 – in the section of its web site labeled “Investor Alerts” the NASD has issued a warning regarding so called “stretch IRAs”. A stretch IRA stretches the period of tax deferred earnings of assets within an IRA beyond the lifetime of the […]
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- […]
Prime Bank Fraud Action by SEC
Another Prime Bank Fraud Action Commenced by SEC December 20, 2000. The SEC announced today that it filed an action against Phillip Ezell, a resident of Fort Wayne, Indiana, for offering fictitious “prime bank” instruments over the Internet from March 1998 to August 2000. The Commission alleges that Ezell, doing […]
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 […]
SEC Approves Liberalized Listing Standards for MFQS
Changes for Mutual Fund Quotation Service Approved By John M. Baker, Esq. October 13, 2000 – The SEC today published in the Federal Register its approval of the Nasdaq’s liberalized listing standards for the Mutual Fund Quotation Service. Release No. 34-42417, 65 Fed. Reg. 61,012 (Oct. 5, 2000). The […]
Internet Promoters Settle Anti-Touting Case
By Mark J. Astarita, Esq. On July 17, 2000 the SEC announced that it filed a civil complaint against an internet company and its officer. In addition to fraud charges, the SEC alleged that the defendants engaged in scalping for selling the security they were recommending while making the recommendation […]
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 […]
Implied Right of Action under 36(a) of the 1940 Act?
In an amicus brief, the SEC says yes By John M. Baker, Esq. The SEC has filed a brief amicus curiae in which it took the position that an implied private right of action exists under section 36(a) of the 1940 Act for investment companies as well as individual shareholders. […]
