Securities Litigation

The Financial Industry Regulatory Authority ("FINRA") recently filed a proposed rule change with the Securities and Exchange Commission ("SEC") to amend Rules 12214 and 12601 of the Code of Arbitration for Customer Disputes ("Customer Code") and Rules 13214 and 13601 of the Code of Arbitration Procedure for Industry Disputes ("Industry Code") (collectively, "Codes") to require that parties to an arbitration to provide more advance notice before cancelling or postponing a hearing or pay a higher cancellation fee if advance notice is not provided. These changes are ...

After seeking comments last fall, the Securities and Exchange Commission ("SEC") recently approved the Financial Industry Regulatory Authority's ("FINRA") proposed rule governing member firms' verification and investigation of associated persons applying for registration with a member firm. Specifically, the Rule, which is based largely on NASD Rule 3010(e), requires member firms to investigate the qualifications and experience of its applicants as well as adopt written procedures designed to verify the accuracy of the disclosures contained in an applicant's ...

The Financial Industry Regulatory Authority ("FINRA") recently filed a proposal with the Securities and Exchange Commission ("SEC") to amend FINRA's rule governing member firms' background investigations into associated persons applying for registration with the firm. Specifically, the proposed rule clarifies the current investigation procedures contained in FINRA Rule 3110(e) and adds a provision requiring member firms to adopt written procedures designed to verify the accuracy of the disclosures contained in an applicant's Uniform Application for Securities ...