BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Wall Street News
- Investments - Private
- Rules & Regulations
- Bad Advisors
- Boiler Rooms
- Terminations/Cost Cutting
- General News
- Donald Trump & Co.
- Big Banks
- Regulatory Sanctions
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Investments - Private
A Case in Search of Some Common Sense
by Howard Haykin
AND TALKING ABOUT 'COMMON SENSE', … how about the Springdale, AZ-based broker with Cetera Advisor Networks who, along with a long-time friend and customer, was caught investing in a private securities transaction. The broker and his friend/customer each invested a modest $15,000 in a trucking company - after the broker was warned by his firm not to participate in the deal.
Specifically, after somehow learning that the broker was either participating in or thinking about participating in the trucking company investment, ”Cetera warned [the broker] that any such investment would constitute a private securities transaction that could result in his termination.” WHY? Because the deal was a securities transaction outside the course or scope of the broker’s employment with Cetera. Nevertheless, each man proceeded to invest. After that, the broker falsely denied making any investment and falsely disavowed any intent to pursue any investment.
THE ABSENCE OF SOME COMMON SENSE. One might rationalize a broker's participation in a private securities transactions under different circumstances, such as ... (i) when the broker's firm is 'totally in the dark' about a deal; or, (ii) when the broker's firm is aware of a deal, but the 'stakes are too high to pass up' - i.e., customers are investing serious money and the broker is looking at large commissions.
[For further details, click on … FINRA Case #2018059200701.]