One issue raised by this enforcement action is the extent to which a broker-dealer is required to approve and supervise outside investment advisory activities conducted by its registered representatives. In line with the enforcement action, FINRA's 2018 Request for Comment on outside business activities and private securities transactions noted that: "Under Rule 3280 and related guidance, members must supervise and record on the members' books and records the transactions resulting from most…
A threshold question, which was not addressed in this enforcement action, is whether a securities transaction is required to be marked as "solicited" or "unsolicited" under and, if so, under what circumstances. This question arises because does not itself require a broker-dealer to indicate on an order ticket whether a trade was "solicited" or "unsolicited." However, as this enforcement action shows, there is clearly a regulatory expectation for firms to indicate on order tickets…
The SEC is focused on how to address the impact of MiFID II on the provision of investment research to advisers and funds. Mr. Clayton's comments echo the views expressed in a recent by Dalia Blass, Director of the SEC's Division of Investment Management, in which she similarly noted that market solutions may make extending the MiFID II no-action relief unnecessary. Ms. Blass noted that the Division was "not yet convinced" of the need for a "permanent blanket exemption" from the…
The DTCC provides a thoughtful analysis of the principles that should govern the post-trade processing of security tokens and other digital assets. Of particular interest is the analysis of centralized (or "permissioned") and decentralized ("permissionless") networks, the specific risks inherent in each type of network, and how the high-level principles for post-trade processing of transactions outlined by the DTCC would apply to each type of network.
Recent Articles & Comments
One issue raised by this enforcement action is the extent to which a broker-dealer is required to approve and supervise outside investment advisory activities conducted by its registered representatives. In line with the enforcement action, FINRA's 2018 Request for Comment on outside business activities and private securities transactions noted that: "Under Rule 3280 and related guidance, members must supervise and record on the members' books and records the transactions resulting from most…
A threshold question, which was not addressed in this enforcement action, is whether a securities transaction is required to be marked as "solicited" or "unsolicited" under and, if so, under what circumstances. This question arises because does not itself require a broker-dealer to indicate on an order ticket whether a trade was "solicited" or "unsolicited." However, as this enforcement action shows, there is clearly a regulatory expectation for firms to indicate on order tickets…
The SEC is focused on how to address the impact of MiFID II on the provision of investment research to advisers and funds. Mr. Clayton's comments echo the views expressed in a recent by Dalia Blass, Director of the SEC's Division of Investment Management, in which she similarly noted that market solutions may make extending the MiFID II no-action relief unnecessary. Ms. Blass noted that the Division was "not yet convinced" of the need for a "permanent blanket exemption" from the…
The DTCC provides a thoughtful analysis of the principles that should govern the post-trade processing of security tokens and other digital assets. Of particular interest is the analysis of centralized (or "permissioned") and decentralized ("permissionless") networks, the specific risks inherent in each type of network, and how the high-level principles for post-trade processing of transactions outlined by the DTCC would apply to each type of network.