Header graphic for print
The BD/IA Regulator Providing securities regulatory, enforcement and litigation trends for broker-dealers, investment advisers and investment funds

Tag Archives: Securities Exchange Act of 1934

SEC Proposes Rule Requiring Hedging Disclosure

Posted in Broker-Dealer Regulation, Investment Adviser Regulation

On February 9, 2015, the Securities and Exchange Commission (the “Commission”) proposed amendments to its rules to implement Section 955 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), which added new Section 14(j) to the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Section 14(j) directs the Commission… Read More

SEC Staff Finds that Broker-Dealers Still Are Not Conducting Adequate Section 5 Reviews

Posted in Broker-Dealer Regulation

The staff of the SEC recently addressed broker-dealers’ obligations when engaging in transactions in unregistered securities by issuing FAQs and a Risk Alert that reported the results of examinations of a number of broker-dealers’ practices in handling unregistered securities.  The SEC’s core focus in these areas is curbing and preventing activities that undermine, or threaten… Read More

Referral Fees and Commission Sharing – When May Broker-Dealers Share Their Fees with Non-Brokers?

Posted in Broker-Dealer Regulation, SEC Enforcement

FINRA recently filed proposed rule changes with the SEC addressing when broker-dealers may pay referral fees or otherwise share compensation with persons who are not registered as broker-dealers.  The proposed rule changes are subject to the SEC’s approval.  If approved, new Rule 2040 and related conforming changes to other FINRA rules will go into effect… Read More