Securities and Compliance

Understanding Public Disclosures on FINRA’s BrokerCheck

Understanding Public Disclosures on FINRA’s BrokerCheck Submitted by the Financial Services Litigation PAC By: Mauricio Beugelmans, Beugelmans LLP Providing the public with relevant information about securities professionals and their firms is a central component behind BrokerCheck, a free tool administered by the Financial Industry Regulatory Authority, Inc. (“FINRA”).[1]  Over the past several years, FINRA has promoted BrokerCheck through national advertising…

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Beugelmans News

Morgan Johnson Featured by Women’s Bar Association of Illinois

Morgan Johnson Featured by Women’s Bar Association of Illinois

Member Monday Profile: Morgan Johnson By: Women's Bar Association of Illinois Associate | Beugelmans, LLP Description of your practice: My practice focuses on representing individual clients and financial institutions in securities regulation, litigation, and arbitrations before FINRA and other self-regulatory organizations. Why are you a member of the WBAI? I joined the WBAI to connect with individuals who are not only invested in their…

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FINRA Audits: What to Expect and How to Prepare

FINRA Audits: What to Expect and How to Prepare

Did you know that FINRA conducts between 1,500 and 2,000 audits a year? The Financial Industry Regulatory Authority (“FINRA”) delivers audits and regulation services to the financial industry. As a Self-Regulatory Organization (“SRO”), FINRA works closely with the Securities and Exchange Commission and enforces securities regulations. When your firm is due for an exam, FINRA assigns a Regulatory Coordinator who…

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Why and When Registered Representatives Should Consider Seeking Expungement

Why and When Registered Representatives Should Consider Seeking Expungement

Expungement is the removal of certain disclosure events on a registered representative’s record – primarily customer complaints and arbitrations, and in some instances employment termination explanations. Once a disclosure event is expunged, it is no longer accessible by prospective employers or by the general public. Financial advisors should consider seeking expungement to: Protect Your Reputation. All disclosures listed on FINRA’s…

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Ponzi Schemes: 7 Warning Signs from the SEC

Ponzi Schemes: 7 Warning Signs from the SEC

Do you know how to spot Ponzi Schemes? Are you aware of the warning signs? Recently, a Long Island firm lied to investors about having connections to Jay Z’s entertainment company, Roc Nation, and allegedly defrauded investors out of $70 million. More details can be found here. In furtherance of the above, please find additional information related to Ponzi schemes,…

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Advisors: Things to Consider when Transitioning Firms

Advisors: Things to Consider when Transitioning Firms

Did You Know That Advisor Recruitment is at a Four-Year High? According to data compiled by On Wall Street, despite the recent decision by certain wirehouses to significantly reduce recruiting, recruitment is at a four-year high and remains strong. Recruiters say that the continued strength in recruiting is due to regulatory uncertainty, an aging advisor population, and the expiration of…

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FINRA Proposes Rule Change on Definition of a Non-Public Arbitrator

FINRA recently filed a proposed rule change with the SEC to amend Rules 13100 and 12100 of the FINRA Code of Arbitration Procedure to simplify the definition of a non-public arbitrator, and to address an eligibility gap that has been preventing certain otherwise qualified arbitrators from serving on panels. To address concerns about arbitrator’s neutrality, FINRA last amended the definitions…

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FINRA Implements New Rules April 3, 2017

Effective April 3, 2017, the Financial Industry Regulatory Authority (“FINRA”) will be implementing several new rule changes to both the customer and industry codes (“Rules”).  While the rule changes focus on the use of FINRA’s web based DR-Portal (“Portal”), there are a few additional broader changes that practitioners should be aware. As of the effective date, all represented parties must…

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SEC Staff Issues Guidance on Robo-Advisers

The Securities and Exchange Commission’s Division of Investment Management (“SEC”) recently published information and guidance for investors and the financial services industry on the use of automated advisers, or robo-advisers, which are registered investment advisers (“RIA”) that use computer algorithms to provide advisory services with limited human interaction. Robo-Advisers are subject to the same fiduciary obligations under the Investment Advisers…

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