SEC News
- SEC Charges Dallas-Based Trader With Front Running May 24, 2013FOR IMMEDIATE RELEASE2013-93 Washington, D.C., May 24, 2013 — The Securities and Exchange Commission today announced fraud charges and an asset freeze against a trader at a Dallas-based investment advisory firm who improperly profited by placing his own trades before executing large block trades for firm clients that had strong potential to increase the stoc […]
- SEC Charges Institutional Shareholder Services in Breach of Clients' Confidential Proxy Voting Information May 23, 2013FOR IMMEDIATE RELEASE2013-92 Washington, D.C., May 23, 2013 — The Securities and Exchange Commission today charged a Rockville, Md.-based proxy adviser for failing to safeguard the confidential proxy voting information of clients participating in a number of significant proxy contests. Additional Materials SEC Order An SEC investigation found that an employe […]
- SEC Charges City of South Miami with Defrauding Investors About Tax-Exempt Status of Municipal Bonds May 22, 2013FOR IMMEDIATE RELEASE2013-91 Washington, D.C., May 22, 2013 — The Securities and Exchange Commission today charged the City of South Miami, Fla., with defrauding bond investors about the tax-exempt financing eligibility of a mixed-use retail and parking structure being built in its downtown commercial district. Additional Materials SEC Order An SEC investiga […]
- SEC Charges Chicago-Area Father and Son Conducted Cherry-Picking Scheme at Investment Firm May 16, 2013FOR IMMEDIATE RELEASE2013-90 Washington, D.C., May 16, 2013 — The Securities and Exchange Commission today charged a father and son and their Chicago-area investment advisory firm with defrauding clients through a cherry-picking scheme that garnered them nearly $2 million in illicit profits, which they spent on luxury homes, vehicles, and vacations. Addition […]
- SEC Names Keith F. Higgins as Director of Division of Corporation Finance May 15, 2013FOR IMMEDIATE RELEASE2013-89 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today named Keith F. Higgins as the new director of the agency’s Division of Corporation Finance. Mr. Higgins comes to the SEC from the law firm of Ropes & Gray LLP where he is a partner in its Boston office with 30 years of experience advising public com […]
TAG | controls placed on brokers
22
Does Your Broker/Dealer Know Exactly What He Is Selling?
Comments off · Posted by Securities Lawyer in FINRA
In a May 21, 2012 article from the InvestmentNews.com website, Bruce Kelly writes that the SEC is looking at “several areas of high risk” in the securities industry.
Some of the areas they are looking into include broker-dealer due diligence, net capital levels at broker-dealers and “dark pools” of liquidity, said Julius Leiman-Carbia, associate director in charge of the National Broker-Dealer Examination Program in the SEC’s Office of Compliance Inspections and Examinations.
The definition of a dark pool is a source of liquidity that is nondisplayed, meaning that it does not publicly disseminate quotes, according to PriceWaterhouseCoopers LLC. Trading volume of U.S. stocks through dark pools has increased in recent years.
“We’re looking at due diligence,” Mr. Leiman-Carbia said in a panel discussion Monday afternoon at the annual meeting of the Financial Industry Regulatory Authority Inc. in Washington. He said he wonders if brokers truly understand all the products that they are selling.
Kelly writes that the SEC is also focusing on “the division between the investment adviser and broker-dealer sides” of firms that are dually registered, including “what types of controls are in place when money is [placed with] the investment adviser,” Mr. Leiman-Carbia said. Is there a good reason why it’s there, other than the firm can make money this way, he asked.
The SEC is also looking at firms’ levels of net capital, which each broker-dealer must maintain in order to stay open for business. And the commission also is trying to pinpoint investor fraud, Mr. Leiman-Carbia said. Indeed, the SEC is looking at the country as a whole to identify particular areas where fraud is prevalent, he said. One benefit would be to locate regions where senior citizens are defrauded writes Kelly in the InvestmentNews.com article.
brokerage supervisory deficiencies · controls placed on brokers · dark pool · dark pools of liquidity · failure to establish due diligence policies for brokerages · failure to provide due diligence · failure to supervise brokers · Financial Industry Regulatory Authority · FINRA arbitration · fort lauderdale securities fraud lawyer · inadequate supervisory procedures by broker/dealers · Lars K. Soreide · levels of net capital for broker dealers · SEC · Securities and Exchange Commission · securities lawyer · Stock brokers not understanding the products · supervisory failures · Unsuitable investments to elderly
