Sales Practices, solicitations, advertising regulations adopted By John M. Baker, Esq. The Office of the Comptroller of the Currency has posted the final version of consumer-protection regulations adopted by the OCC, FDIC, OTS, and Federal Reserve under the Gramm-Leach-Bliley Act. The regulations apply to retail sales practices, solicitations, advertising, and […]
News
SEC Proposed New Rules for Independent Auditors
New Definitions and Rules to Measure Independence, New Restrictions By John M. Baker, Esq. On June 30, 2000 the SEC posted proposed rules that would substantially revise the independence standards for auditors. Release Nos. 33-7870, 34- 42994, 35-27193, IC-24549 (June 30, 2000). The proposal would modernize the rules for auditor […]
Variable Annuities Under Scrunity
SEC Notes Explosive Growth and Fee Issues, Shareholders Sue Over Fees By John M. Baker, Esq. Variable annuities typically do not get a great deal of attention from the SEC’s upper levels, but they were the subject of a speech by Investment Management Director Paul Roye before the National Association […]
Compliance officer wins attorneys fee award from SEC
Compliant not “substantially justified”, ALJ orders SEC to pay attorneys fees. By John M. Baker, Esq. A compliance officer recently had a major win against the SEC under the Equal Access to Justice Act, which provides for reimbursement of attorney fees in some cases when an administrative agency’s position […]
SEC Bulletin on Aftermarket Purchases, Tying Transactions
Tying aftermarket purchases to initial distributions is prohibited. By John M. Baker, Esq. SEC Bulletin on Aftermarket Purchases On August 25, 2000, the SEC’s Division of Market Regulation issued a legal bulletin stating that underwriters, broker-dealers, and other distribution participants are prohibited from soliciting or requiring their customers to […]
LAW REVIEW: Liar, Liar?
Form u-4 and form u-5 are two of the most oppressive and abused securities industry documents. recent changes were approved without a single comment from the industry. The SEC’s Bad Form By Mark J. Astarita, Esq. On July 5, 1996, the Securities and Exchange Commission (SEC) announced it had approved […]
Global Billion Dollar Settlement
“These cases reflect a sad chapter in the history of American business — a chapter in which those who reaped enormous benefits from the trust of investors profoundly betrayed that trust. These cases also represent an important new chapter in our ongoing efforts to restore investors’ faith in the fairness […]
SEC’s Cheap Shot at Martha Stewart
Again. The Abuse of Power. The second part of the story is undoubted of more interest to securities lawyers, judges, and law professors, but the rest of you should continue reading. Government abuse is a topic that affects all of us and unfortunately happens too often. The abuse involves quests […]
Hire Standards
Regulators Call For Increased Scrutiny of Brokers with Disclosures By Mark J. Astarita, Esq. WHETHER JUSTIFIED OR NOT, the hiring and continued employment of brokers with disclosable events on their Central Registration Depository (CRD) reports is an increasing concern. Just last year, a report issued by regulators recommended stringent […]
Promissory Note Fraud
NASDR Warns Investors and Brokers of Promissory Note Fraud Schemes. Investors Beware. By Mark J. Astarita, Esq. The NASD has issued a regulatory alert to broker-dealers regarding the significant number of fraudulent promissory note schemes that have been offered to investors and to remind members and registered persons of the […]
