SEC Issues Report on Definition of Accredited Investor

Stockbroker Law - Tuesday, March 08, 2016
SEC Issues Report on Definition of Accredited Investor

On December 18, 2015 the United States Securities and Exchange Commission issued a Report on the Review of the Definition of “Accredited Investor.” The fringe market involving the sale of private placement investments to qualified investors pursuant to exemptions under Regulation D have exploded in the past ten years. Regulation D is an exception to the filing requirements for offering companies involving packaging and selling private placement investments to public investors. Unfortunately, many firms involved with the sale of private placements have abused these guidelines and have engaged in gaming of the accredited investor qualification requirements to advance the marketers self-interests in raising capital for their deals. 


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Regulation 200 and Life Insurance Death Benefits

Stockbroker Law - Tuesday, March 01, 2016
Regulation 200 and Life Insurance Death Benefits

An investigation by the New York State Department of Financial Services resulted in the return of more than $1,000,000,000 of unpaid life insurance benefits to consumers nationwide. New York State Law requires that life insurer’s perform frequent and regular checks against the Social Security Administration’s Death Master File (DMF) and pay death benefits to named beneficiaries under life insurance policies. 


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FINRA Issues Guidance on Best Execution Obligations

Stockbroker Law - Tuesday, February 23, 2016
FINRA Issues Guidance on Best Execution Obligations

In FINRA Regulatory Notice 15-46 the Financial Industry Regulatory Authority (FINRA) clarifies the best execution obligations of a broker dealer when executing customer orders in publicly traded securities. This notice details the obligation of a brokerage firm to “regularly and rigorously examine execution quality likely to be obtained from the different markets, trading and security.” 


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FINRA Issues Guidance on Interpretation of FINRA’s Margin Rule

Stockbroker Law - Wednesday, February 17, 2016
FINRA Issues Guidance on Interpretation of FINRA’s Margin Rule

In November of 2015 FINRA Regulation issued further guidance regarding FINRA Rule 4210, which sets forth the margin requirements for calculating the required amount of collateral to be maintained by customers in their margin accounts. This guidance includes both strategy-based margin accounts, as well as portfolio margin accounts and also addresses the margin requirements for equities, options, fixed income securities, warrants and other securities’ futures. 


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SEC Issues Investor Bulliten on Variable Annuities

Stockbroker Law - Tuesday, February 09, 2016
SEC Issues Investor Bulliten on Variable Annuities

On November 5, 2015 the Securities and Exchange Commission issued an Investor Bulletin entitled “Variable Annuities – An Introduction.” This publication of the SEC Office of Investor Education Advocacy follows on the heels of prior publication of the Financial Industry Regulatory Authority (FINRA) including Regulatory Notices and Investor Alerts warning investors about the pitfalls of investing in a variable annuity. 


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