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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
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- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
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- 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
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NEWSLETTERS & ALERTS
My Broker Only Did Me a Favor - Why Was He Suspended?
by Howard Haykin
CONVENIENCE VS. REQUIREMENTS. You told your broker you didn’t want to be bothered with signing the Disbursement Request Form each and every time you needed funds. So he accommodated you by having you sign a blank ‘Master’ form.
For the 60 or so occasions when you needed funds, your broker filled in the details on a copy of the pre-signed ‘Master’ Disbursement Request and submitted it for processing. And each request for funds was fulfilled - until one day it wasn't!
While nothing happened to the customer, the broker was punished for violating firm policies and procedures, as well as securities rules and regulations. He resigned from Morgan Stanley, fined $10,000, and suspended 2 months.
SAFEGUARDS ARE IN PLACE TO PROTECT CUSTOMERS. 'A chain is only as strong as its weakest link' - which explains why the broker in this case was severely sanctioned. And it provides a good explanation for why customers should not ask their brokers to intentionally break the rules - particularly when it simply a matter of one's convenience. Instead, try and seek out workable alternatives - within the rules.