Philip Arnold
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In a rare reversal of its own administrative law judge in the Matter of optionsXpress, the full Securities and Exchange Commission unanimously held that the SEC’s Enforcement Division had not met its burden of proof that the customer of a broker-dealer had committed securities fraud in connection with his clearing broker-dealer’s failure to deliver stock … Continue Reading
On March 4, 2016, the U.S. Court of Appeals for the Second Circuit reinforced the stringency of the new standard for liability in securities cases arising from allegedly misleading statements of opinion. Construing the Supreme Court’s 2015 Omnicare decision, the Second Circuit held in Gen. Partners Glenn Tongue v. Sanofi Pharmaceuticals, Inc. that a statement … Continue Reading
On November 24, 2015, the CFTC announced the new proposed Regulation Automated Trading (“Reg. AT”), which contains a variety of measures designed to prevent potential market disruptions arising from algorithmic trading. Among other things, Reg. AT proposes certain pre-trade risk and order management controls, the implementation of policies and procedures governing algorithmic trading, and additional … Continue Reading
On November 19, 2015, the SEC announced a settlement with investment advisory firm Sands Brothers Asset Management, LLC for violating the Custody Rule, SEC Rule 206(4)-2, which requires that registered investment advisers who have custody of their clients’ assets put in place policies and procedures intended to safeguard those assets against loss, misuse or misappropriation. … Continue Reading
Concluding a year-long review, UK regulators issued the final report of the Fair and Effective Markets Review Committee last week, making a number of recommendations intended to restore confidence in the trading markets for fixed income, currency and commodities (“FICC”) in the wake of past misconduct. The report noted the substantial fines that have been … Continue Reading
Last week, Richard Ketchum, Chairman and CEO of the Financial Industry Regulatory Authority (“FINRA”), doubled-down on his recent criticism of the U.S. Department of Labor’s (“DOL”) proposed regulation addressing the standard of care for broker-dealers providing retirement investment advice. Speaking at FINRA’s annual conference, Chairman Ketchum said that, while he supports a “best interests of … Continue Reading
FINRA recently released updated and revised Sanction Guidelines and an accompanying Regulatory Notice that, among other things, call for stricter penalties against broker-dealers who commit fraud or violate suitability rules. The revisions are effective as of May 12, 2015. The Sanction Guidelines, first published in 1993, are intended to assist FINRA’s adjudicators in determining the … Continue Reading
Originally published as a Proskauer Client Alert. On October 23, 2014, the New York Court of Appeals held for the first time that, under New York law, the “separate entity” rule prevents a court from ordering a foreign bank operating branches in New York from restraining a judgment debtor’s assets held in foreign branches of the bank. Motorola … Continue Reading
In the recent case Citigroup Global Markets Inc. v. Ghazi Abdullah Abbar, et al., 13 Civ. 2172 (2d Cir. Aug. 1, 2014), the Second Circuit held that, under FINRA rules, an investor who purchased an over-the-counter derivative from a financial institution was not a “customer” of the financial institution’s affiliated broker-dealer, notwithstanding the broker-dealer’s involvement … Continue Reading
SEC Overrules Its Own Administrative Law Judge to Clear Customer of Fraud Charges
By Harry Frischer and Philip Arnold on Posted in Broker-Dealer, SEC Enforcement, Securities Regulatory
Second Circuit Reinforces Liability Standard in Securities Cases Based on Statements of Opinion
By Jonathan Richman, Philip Arnold and Tanya Dmitronow on Posted in Corporate Governance, Securities Litigation, Securities Regulatory
CFTC Proposes New Regulations For Algorithmic Trading
By Brian Friedman, Harry Frischer and Philip Arnold on Posted in Financial Services
SEC Once Again Sanctions The CCO of An Investment Advisory Firm
By Harry Frischer and Philip Arnold on Posted in Financial Services, SEC Enforcement
UK Regulators Address Manipulation of Trading Benchmarks and Other Misconduct
By Harry Frischer and Philip Arnold on Posted in Financial Services, Securities Regulatory
FINRA CEO Criticizes DOL Fiduciary Proposal (Again)
By David Picon, Edward Canter, Harry Frischer and Philip Arnold on Posted in Financial Services, Securities Regulatory
FINRA Introduces Revised Sanction Guidelines
By Daniel Nelson, Harry Frischer and Philip Arnold on Posted in Financial Services, Securities Regulatory
Recent Appellate Decisions Limit Access To Customer Assets Held At Foreign Bank Branches
By Harry Frischer, Jessica Fisher and Philip Arnold on Posted in Financial Services
Second Circuit Rules That Derivatives Counterparty Is Not A “Customer” of Broker-Dealer Under FINRA Rules
By Brian Friedman, Harry Frischer and Philip Arnold on Posted in Securities Regulatory
