Steven Lofchie is a Partner based in New York. He advises financial institutions and corporate clients on the securities laws and the Commodity Exchange Act, with particular focus on the regulation of broker-dealers, swap dealers, investment funds and other market intermediaries. Steven's transactional practice focuses on securities credit and derivative transactions.

Recent Articles & Comments

While there is general consensus that the concept behind Rule 10b5-1 plans is very sensible (i.e., insiders should be given a means to liquidate their holdings in a controlled fashion without becoming subject to Rule 10b-5 liability), there also have long been assertions that insiders seem to affect their trading with results that are better than those that would result from a random walk down Wall Street. This is a material issue that has the potential to create real distrust as to…

It is interesting that a firm's CCO is being disciplined for failing to supervise the CCO's own boss. Given the fact that the firm's president and CCO are married, it's difficult to say how much of a precedent this establishes, if any, but CCOs should be aware that they have upward supervisory obligations.

The FINRA disciplinary action against the firm's owner is a reminder that a supervisor cannot insulate himself from liability by failing to register.