FINRA Trade Reporting and Compliance Engine (TRACE)

Stockbroker Law - Wednesday, September 09, 2015
FINRA Trade Reporting and Compliance Engine (TRACE)

The Financial Industry Regulatory Authority (FINRA) has developed a system for the mandatory reporting of most bond transactions in the United States. All broker/dealers who are members of FINRA are required to report transactions and corporate bonds to the TRACE System under rules approved by the SEC. These rules were designed to bring transparency to bond transactions and to prevent overpricing, excessive markups and self dealing whereby firms selling bonds to customers might otherwise reap improper and undisclosed trading profits by way of sales of bonds to customers. 


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SEC Charges Hans Peter Black and Interinvest With Fraudulently Funneling Client Assets to Companies and Owners Interests

Stockbroker Law - Thursday, July 09, 2015
SEC Charges Hans Peter Black and Interinvest With Fraudulently Funneling Client Assets to Companies and Owners Interests

On June 17, 2015 the SEC announced fraud charges against Interinvest and Hans Peter Black for channeling more than $17,000,000.00 of their clients’ assets into four financially troubled Canadian penny stock companies in which they allegedly had an undisclosed interest. 


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Raymond James, Wells Fargo and LPL Financial Ordered to Pay More Than $30,000,000.00 in Restitution to Retirement Accounts and Charities Which Were Overcharged for Mutual Funds

Stockbroker Law - Friday, June 26, 2015
Raymond James, Wells Fargo and LPL Financial Ordered to Pay More Than $30,000,000.00 in Restitution to Retirement Accounts and Charities Which Were Overcharged for Mutual Funds

On Monday, July 6, 2015 the Financial Industry Regulatory Authority (FINRA) announced that Wells Fargo, Raymond James and LPL Financial were ordered to pay $15,000,000.00, $8.7 Million, and $6.3 Million Dollars, respectively in restitution, including interest, with payments to be made to customers effected by the firms’ failure to waive mutual funds sales charges for certain retirement and charitable accounts. 


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The New York State Department of Financial Services - Life Insurance Resource Center

Stockbroker Law - Thursday, May 21, 2015
The New York State Department of Financial Services - Life Insurance Resource Center

The New York State Department of Financial Services maintains a Life Insurance Resource Center on its website designed to inform New York State residents of the various life insurance-related products being sold in New York State. These products include immediate annuity contracts such as:  


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Reverse Convertibles – Risky Investments Plagued with Losses

Stockbroker Law - Monday, May 18, 2015
Reverse Convertibles – Risky Investments Plagued with Losses

A number of brokerage firms have sold reverse exchangeable securities, also known as reverse convertibles, to retail investors. These structured products, promising high yields, are often difficult for the average investor to understand and are loaded with risks. In Regulatory Notice 10-09, the Financial Industry Regulatory Authority (FINRA) noted the complexity of these products, which are essentially a short-term note whose performance is tied to a separate asset such as a common stock or grouping of stocks, or an index. The maturity dates of these investments generally range from three months to a year and feature coupon rates oftentimes higher than conventional debt instruments. 


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