Posts Tagged ‘Broker Dealer’

Fiduciary Duty Reform Proposal May Backtrack on Previous Rhetoric

There is speculation this week that Senator Christopher Dodd (D-CT), will introduce new financial reform legislation that fails to create single fiduciary duty for Registered Independent Advisors (RIAs) and Broker-Dealers. This represents an expected 180?on the subject of fiduciary duty reform in light of intense lobbying efforts by the financial industry.

The provision, rather than create a single standard, calls on the Securities and Exchange Commission (SEC) to conduct a study on regulatory standards in the RIA/Broker-Dealer field, and then propose rules on the issue. The provision was first circulated by Senator Tim Johnson (D-SD), a Banking Committee member, three weeks ago.

Those in the financial industry have heard about the potential of a single fiduciary standard applying to both RIAs and broker-dealers for years, yet such talk has remained just that, talk. As quoted by Investmentnews.com, Knut A.

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Madoff Executive is Charge in Ponzi Scheme

The long-time director of operations for convicted Ponzi schemer Bernard Madoff’s defunct firm was arrested and charged criminally Thursday with allegedly directing that false accounting entries be made in the firm’s books to conceal Mr. Madoff’s fraud.

Prosecutors from the U.S. Attorney’s Office in Manhattan charged Daniel Bonventre, former operations director at Bernard L.

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Knight Boosts Options Staff With Six Traders From Newedge

(Bloomberg) — Knight Capital Group Inc., which executes the most U.S.

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SEC Charges Houston Broker Dealer with Defrauding Florida Municipalities

The Securities and Exchange Commission today charged a Houston-based broker with engaging in unauthorized and unsuitable trading on behalf of two Florida municipalities, putting them at risk of losing millions of dollars while he reaped commissions of more than $14 million for himself.

The SEC’s complaint alleges that Harold H.

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Book : Too Good to Be True: The Rise and Fall of Bernie Madoff

When Bernie Madoff’s $65 billion Ponzi scheme unraveled at the end of 2008, many in the industry wondered how he did it, how otherwise savvy investors were lured into it, and how regulators failed to stop it.

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House Kills Amendement Aimed at Expanding FINRA’s Power

The House passed an amendment killing a proposal that would have given the Securities and Exchange Commission (SEC) the power to allow the Financial Industry Regulatory Authority (FINRA) to carry out oversight on investment advisers working at broker-dealer firms.

The amendment, submitted by Republican Representative Spencer Bachus, R-Alabama, was part of the Investor Protection Act of 2009.

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InvestmentNews — LPL Sues Pac Life Over Purchase of Broker Dealers

Indemnification dispute with the insurer won’t affect their businesses, firm insists
By Bruce Kelly

At the same time that LPL Holdings Inc. and the three broker-dealers it bought from Pacific Life Insurance Co. were filing suit against the insurer, LPL was reaching out to its advisers to reassure them that the dispute wouldn’t affect their businesses.

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Senate Banking Committee Releases Discussion Draft on Financial Reform Legislation

The Senate Banking Committee has released a discussion draft of proposed financial reform legislation (see Investor Protection Act) titled, “Restoring American Financial Stability Act of 2009.” The discussion draft varies from the version recently approved House Financial Services Committee in one key respect: it is better for investors.

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California Broker Barred from Securities Industry for Insider Trading

A former employee of Piper Jaffray & Co., Abhishek Uppal, has been barred from the securities industry for engaging in insider trading. The Financial Industry Regulatory Authority (FINRA) made this decision following actions taken by Uppal in June of this year.

Uppal, a resident of the San Francisco area, purchased shares of SoftBrands days before the company announced it was being acquired by Golden Gate Capital and Infor Global Solutions.

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Ameriprise Reaches Settlement in Broker Misconduct Case

Ameriprise Financial has reached a settlement with the Commonwealth of Massachusetts in connection with allegations of deceptive sales practices. The settlement requires the Minnesota-based broker-dealer to pay fines in the amount of $200,000. The government complaint contended that Ameriprise failed to adequately supervise its financial representatives, thus allowing this instance of broker misconduct to take place..

The government alleged that financial representatives were charging fees for financial plans that were never delivered to clients.

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