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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
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NEWSLETTERS & ALERTS
You Can’t Tell the Players with a Scorecard
by Howard Haykin
Fortunately, investors have access to a history of financial events for each and every broker. That information, along with their qualifications and employment history, is available to the public on FINRA's Brokercheck.
EXCEPT WHEN IT ISN’T, ... which is to say that some broker-dealers fail to post such information about their brokers and registered personnel to Brokercheck - or they do so months too late. For example, First Financial Equity Corporation, which is based in Scottsdale, AZ, allegedly failed to post to Brokercheck “71 outstanding liens, outstanding judgments, bankruptcies and creditor comprises in a timely fashion or, in some cases, at all” for 20 of its 165 brokers. Sixty-eight of those disclosures consisted of outstanding judgments and outstanding liens totaling $1.4 million.
Turned out the Chief Compliance Officer was at fault for not updating Brokercheck, while the firm was faulted for not adequately supervising the CCO; they didn't monitor whether she fulfilled her responsibilities.
INVESTOR PROTECTION. Yet, this case study is not an indictment against First Financial Equity Corporation which … (i) prior to these incidents, had not been cited for any similar violations; and, (ii) since entering the securities business in 1985, had maintained a relatively clean disciplinary history.
[For further details, click on … FINRA Case #2017055723502.]