Enforcement of Massachusetts Fiduciary Rule Just Kicked In
Sep 8, 2020

Enforcement of Massachusetts Fiduciary Rule Just Kicked In

By Derek C. Anderson

On September 1, 2020, Massachusetts’ new fiduciary conduct standard went into effect.  In March 2020, Massachusetts became the first state in the country to fully adopt this heightened standard for broker-dealers. The regulations are the result of consumer-oriented Massachusetts Secretary of State Bill Galvin’s opinion that the SEC’s Regulation Best Interest (Reg BI) is insufficient […] More

SEC Expands Definition of “Accredited Investor”
Sep 3, 2020

SEC Expands Definition of “Accredited Investor”

By Michael Schwartzberg

On August 26, 2020, the Securities and Exchange Commission adopted amendments to its definition of “accredited investor”, one of the primary prerequisites to participating in private capital markets. Historically, “accredited investors” were defined solely by an investor’s income and/or net worth, without regard to the investor’s acumen or sophistication. Thus, even sophisticated and experienced investors […] More

FINRA Amends Its Suitability, Capital Acquisition Broker Suitability and Non-Cash Compensation Rules to Comply with Sec’s Regulation Best Interest
Aug 27, 2020

FINRA Amends Its Suitability, Capital Acquisition Broker Suitability and Non-Cash Compensation Rules to Comply with Sec’s Regulation Best Interest

By Derek C. Anderson

On June 19, 2020, FINRA issued Regulatory Notice 20-18, noting changes to FINRA’s suitability rule, Capital Acquisition Broker (“CAB”) suitability rule and rules governing non-cash compensation consistent with the requirements of the SEC’s Regulation Best Interest (“Reg BI”).  The changes were approved by the SEC and became effective on June 30, 2020, the compliance date […] More

FINRA Issues New Regulatory Notice Regarding Private Placement Communications with the Public
Aug 24, 2020

FINRA Issues New Regulatory Notice Regarding Private Placement Communications with the Public

By Denis Dice

FINRA has issued Regulatory Notice 20-21 which provides guidance to its member firms to help them comply with FINRA Rule 2201 pertaining to retail communications concerning private placement offerings.  FINRA Rule 2201 requires that all member firm communications be fair, balanced and not misleading.  Communications must disclose risks and be accurate in order to provide […] More

The “Zoom” Boom:  FINRA Maintains Its Authority to Compel Virtual Hearings Over Member Objections
Aug 17, 2020

The “Zoom” Boom: FINRA Maintains Its Authority to Compel Virtual Hearings Over Member Objections

By Michael Schwartzberg, Allison J. Beatty

If we have learned anything in 2020, it is that the only thing constant in life is change.  The world has changed in just about every way and day-to-day life continues to evolve in light of those changes.  One major development is the increased use – or perhaps reliance – on remote communication.  Zoom, now […] More

Jul 1, 2020

Florida Passes House Bill 813: Protection of Vulnerable Investors

By Derek C. Anderson

On June 30, 2020, Florida’s Governor signed Florida House Bill 813, amending Florida Statute 415.1034 and creating Florida Statute 517.34. This Bill was drafted to protect vulnerable investors within the State of Florida from financial exploitation. The Bill requires broker-dealers, investment advisers and associated persons to report knowledge or suspicion of abuse, neglect, or exploitation […] More

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