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Archive for the ‘The SIPA Opinion’

NIBA and SIPA join forces!

National Investment Banking Association (NIBA) and The Securities Industry Professional Association (SIPA) have agreed to join forces to work on behalf of small broker dealers and Registered Representatives to advance more thoughtful regulation that advances business and capital formation while protecting investors in a more efficient manner. Recently SIPA and NIBA were proud to support […]
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The Establishment and Trump

FINRA and the Small Firm Advisory Board Recently Chip Jones of FINRA made a podcast with Wendy Lanton who is head of the Small Firm Advisory Committee. Please click here to watch this interview For years now mass media, political pundits and people on the left and right scratch their head and cannot figure out […]
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A call for action.

I would like to take this opportunity to thank everyone for their support during the most recent election for the Small Firm seat on the FINRA Board of Governors. I was thrilled and extremely honored to receive the phone call this week from Robert Cook/FINRA telling me that I won. I look forward to working […]
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How many board members does it take to screw in a light bulb?

24 caret board members get’s expensive The recent election of Paige Pierce to the FINRA board had us doing some head scratching. While we acknowledge the small firm representation and large firm representation on the board of governors, is it too much for members to ask for a scale back on the sheer number? Currently, […]
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SIPA Member Paige Pierce Wins FINRA Board Seat

Is it time for optimism for small firms? FINRA recently announced that Paige Pierce has won a seat on the FINRA board of governors to represent the roughly 3000 small firms that are still left. The SIPA has supported her in her past elections for the NAC and the board and we were proud to […]
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Facebook vs. FINRA

Social Media is the fall guy for all the other spy games On a near weekly basis we are subjected to the endless cries from Congress about the invasion of rights on American citizens by the social media and search engine giants of silicon valley. Millions have recently begun closing their Twitter and Facebook accounts […]
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FINRA Double Dipping

FINRA has a curious punishment policy With a heat wave covering much of the country, I am reminded of the Ice cream shops and trucks that all the neighborhood kids ran to in order to get the coldest and best ice cream. We had one shop that had the specialty of doing a double dip […]
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PCAOB RELIEF FINALLY HERE?

Let Paige Pierce finish the job! To my Small Firm colleagues, I would like to take this opportunity to let everyone know that I have thrown my hat into the ring for the FINRA Board and I would really appreciate your support in getting my name on the ballot. To earn my spot on the […]
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The Godfather meets The Sting

Was Hillary Clinton an unwitting pawn? If you are an ardent follower of The SIPA, you know that our basic principles for surviving Life, Wall Street and Regulation are to: 1) Follow the Money 2) Use common sense 3) Every life lesson or parallel can be found in the movie ‘The Godfather” For over 10 […]
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Supreme Court Tackles Constitutional Limits of SEC

FINRA could be next if SCOTUS rules as expected The SCOTUS is hearing a case right now that may change the way the SEC and possibly FINRA have been conducting business for many years now. The SEC has used Administrative Law Judges  (ALJ’s) for some time to hear cases and appeals regarding SEC enforcement.  These […]
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TWO TIER JUSTICE SYSTEM

FBI and FINRA suffer from the same problem   Former FBI director James Comey has spent the last year making conflicting if not hypocritical statements about everything from Hillary Clinton’s e-mail server to Trump’s alleged Russian collusion.  He literally has become a pathetic looking sap of the political parties and the press as he flips […]
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BROKER BEWARE !

FINRA/SEC WATCHING TRUMP CAREFULLY The recent raid of Trump attorney Michael Cohen’s offices should have every broker and owner of a brokerage firm trembling today.   When news broke of this on Monday, our first thought was this is an outrageous and unconstitutional act that puts us all in uncharted waters.  Attorney client privilege (ACP) appeared […]
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TRUMP TAKES ON AMAZON?

Securities Regulation Suffers The SIPA has been rather obvious in its support of President Trump both before and after the election. Not to gloat but we did correctly predict in 2015 what everybody thought was impossible and correctly called the press and democratic/republican meltdown.  Click here so we can gloat! Donald Trump vs Peter Pan […]
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Lessons from Parkland

Making laws that don’t matter  The recent horrifying events in Florida have caused many to become unhinged in their rush to prevent this sort of tragedy from happening again.  Admittedly, as a father of a high school teen, I do not know how I would react if faced with the same horrific event. The media […]
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Are You Not Entertained?

If Americans only knew  In the famous movie “Gladiator”, the young and insane new Caesar named Commodus has a myriad of problems stemming from a failing economy, years of war and a weird crush on his sister.  As the members of the senate begin to press him for solutions, he soon realizes he is way […]
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Justice Is Truly Blind

We have been outspoken about the FINRA Arbitration and Hearing system for many years now.  However, despite our constant chirping in this matter we continue to wonder if FINRA is upholding Justice or are they just plain blind?   Case and point: FINRA Hearing Panel Bars Broker for Defrauding Elderly, Blind Customer WASHINGTON — The Financial […]
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Small Firm Committees : a waste of members money

Is it really worth it? After years of fighting for small members rights, we are beginning to question whether its worth it financially to continue with any of these elections nationwide. The Financial Industry Association (FIA) and later the SIPA , along with others like attorney and small firm advocate, Bill Singer of  Broke and […]
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THE REAL HACKING OF THE 2016ELECTION

How Wall Street Tried to Influence the 2016 Election  The 2016 election was possibly the greatest election upset in the history of U.S. politics.  Donald Trump was a novice, first time candidate who had never even been elected dog catcher but here he was on the big stage taking out one by one, the biggest […]
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EBAY and ISIS

EBAY and ISIS   The US Government has uncovered a global scam in which members of the barbaric terror group ISIS were using EBAY to launder money and send cash to foreign operatives.  In this scam, a terrorist with an EBAY account would take pictures of fictitious items, offer them up for bid or purchase […]
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The Misunderstood Male

Understanding Finances and Women? As I journey through this incredible life I have been blessed with, I have learned so many amazing things.  After 51 years I can honestly say I learn something new each and every day about myself, others and the world we live in.  As a person in the financial world, it’s […]
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ELECTION TIME AGAIN

  Make your voice heard!   It’s that time again when owners of Broker Dealers get slammed with phone calls, emails and faxes asking for their vote. While his can be a little annoying at time we urge you to remember that this is the right we fought for years ago.  There was once a […]
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WIRE TAPS, LEAKS, SURVEILLANCE AND MUSLIM BANS

FINRA members are shaking their heads at America. As a long time member of the Financial Industry with over 25 years of battle scars under my belt, it never ceases to amaze me how clueless the majority of the people are in this country to what is actually occurring.  I often talk to my fellow […]
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TRIPLE PLAY

Puzzling moves by the Democrat party  One of the rarest feats in all of sports is the triple play in baseball.   Despite the fact that around 250,000 baseball games have been played over the last 140 years, the ‘triple play’ has occurred only 709 times in that span or roughly every 350 games played.   It’s […]
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Will Trump Change Regulation on Wall Street?

A chance for regulatory reform in the future Now that the Trump hysteria has settled down and the ‘snowflakes’ have stopped protesting in the streets and the mass media has finally lifted their collective jaws off the carpet, it’s time to look at some of the proposals that Trump has made that could impact our […]
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A guy walks into a bar and….

The beginning of many great jokes always starts off with the proverbial “Guy walking into a bar and orders a drink.”  This month we thought we would analyze a scenario from three different perspectives and ask from three different perspectives why some are regulated and others fall through the cracks.   An 18 year old […]
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Wells Fargo: Crime Does Pay

    We have been monitoring closely the events of the last few months and it appears that rules and laws are in place but are often ignored or enforcement is very selective. Small brokerage firms in particular have seen their compliance cost and burden soar due to nonstop rule making that continually requires yet […]
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WiKi Leaks and FINRA/SEC

Will the inevitable happen sooner or later?  Wiki Leaks and its founder Julian Assange have spent the better part of three years tormenting the most powerful country and people in the world.  From Hillary Clinton to the NSA, they have been brazen in their attack and release of previously classified emails on a variety of […]
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FEELING THE BERN OR GETTING BURNED?

Sanders might be guilty of a Pump and Dump  The recent announcement that the Democratic National Convention was a rigged race from the moment it started comes as no surprise to anyone who has followed the Clinton’s over the last three decades.  Wiki Leaks released over 20,000 emails in which the head of the DNC […]
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The Insanity Must End!

Time to Stop Attacking Brokerage Firms Americans have witnessed firsthand the acts of terror here in our homeland and abroad in Europe. We are constantly reminded to stay vigilant and to make sure we report everything we see that we deem suspicious. Despite this constant reminder from government officials, we have seen time and again […]
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FINRA Model May Not Be Sustainable

FINRA has recently released its annual audited financials and as an organization, it’s not a pretty trend and one has to wonder if big changes need to be contemplated now rather than later.  While the Accountants at FINRA have tried desperately to squeeze out some sort of profit for FINRA for many years now, it’s […]
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BREXIT OR SAXSIT?

  For those of you who are loyal readers of the SIPA, you already know that basically all roads lead back to the Wall Street cartel that basically controls the American way of life. From Congress to the White house, nothing gets done, passed or enacted unless a blessing from the real Godfather is granted.   […]
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World Banks on Fire!

Why regulators keep looking the other way as banks continue to set fires The world banking system continues to be a series of near misses and impending disasters time and time again despite multiple close calls.  In “Man on Fire” we chronicled a young fool who continually played with fire and it almost cost him […]
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Man on Fire

  Mistakes of the past tend to get repeated   (Part I of a  II Part story)  I was recently chirping back and forth with former classmates on Facebook and even in that sentence I reveal how out of touch I am with today’s digital world.  Chirping is for Twitter and Facing is for Booking, […]
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Silence of the Lambs

The Fed’s Wall Street Obsession is Killing American Capitalism  For nearly 20 years now, we have all sat idly by, watching the Federal Reserve obsess over the stock market like  Clarice in Silence of the Lambs obsessed over Hannibal.  It is high time the Congress of this United States got together and limited the Fed […]
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WHAT IF FINRA REGULATED WASHINGTON?

Disciplinary and other FINRA actions January 2016  Hillary Rodham Clinton (Crd # 098765)   was fined $100,000 and prohibited from associating in any capacity for a period of 2 years for not complying with e-mail archiving rules.  Ms. Clinton failed to properly store, maintain and archive her emails in a non editable format that is on […]

The Wizard of Fed Oz

Pay no attention to that man behind the curtain  As we watch yet again the confusing signals of the stock market and the actions of the Fed Reserve, I can’t help but think of the classic movie the Wizard of Oz.   The last 8 years have certainly been the most bizarre and confounding mix of […]
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FINRA firing expensive bullets into Zombies

  Time for a FINRA reevaluation of importance  Each month I can’t wait to study the monthly disciplinary actions on FINRA’s web site for two reasons: First, what sort of idiotic thing did somebody try to pull and Secondly and more importantly, who do I know on the list?  After 20 plus years in the […]
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DONALD TRUMP vs. PETER PAN AND THE LOST BOYS

Why the Donald is upsetting Wall Street and Washington  In the famous novel/movie ‘Peter Pan”, Peter leads a group of miscreant orphans that live in “Never Never Land” and they never grow up and they never change.  On a daily basis they have staged fights with the local Native Indians on the island and some […]
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Accredited or not?

THE APPLICABILITY OF THE “ACCREDITED INVESTOR” DEFINITION AS AN AFFIRMATIVE DEFENSE   Because there appears to be some confusion in the broker community about the applicability of the “accredited investor” definition to the defense of customer securities arbitration proceedings, I offer this perspective. The accredited investor definition is well-known, but for the reader’s convenience I […]
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Who is the real criminal here?

Short Sale Rules being ignored On December 17th 2015 the SEC announced formal charges against Martin Shkreli and his Lawyer for committing Securities fraud, embezzling money from his hedge fund and a variety of other charges.   The SEC also said he made misrepresentations to his ‘Executing Broker Dealer” regarding the location of stock he was […]

What is Attorney-Client Privilege?

You’ve hired a lawyer to help you with the legal matter you’ve been grappling with, but as you prepare for that first meeting with your new lawyer, you may have concerns about how much information you should provide him or her. After all, you’re pretty sure your lawyer is subject to attorney confidentiality—that is, he or she is required […]
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The end of Low Priced Stocks?

Caution: Low Priced Securities! For the last decade or so we have advised firms repeatedly that it’s no longer a matter of WILL Clearing firms and FINRA eliminate low priced physical stock certificates being deposited but a matter of WHEN they will end it. In the last five to seven years it seems that one […]
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David Banerjee For the NAC

Greetings from the Securities Industry Professional Association.  It is with great privilege that we ask all SIPA members to seriously consider signing the enclosed petition for Mr. David Banerjee to be on the ballot for the National Adjudicatory Council.   I have personally known David for nearly 15 years and consider him uniquely qualified to represent […]
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What is a Broker Dealer Worth?

The answer is that you may NEVER find out….We continue to lose Members on a regular basis who simply can’t make it and either just sell their Broker Dealer for a tiny amount of money as a shell or file for withdrawal and just give up.   We need a real Member who understands the […]
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Did Tim Cook Just Do That?

APPLE CEO IN SOME RISKY TERRITORY   Yesterday was a tense day on Wall Street.  The Asian stock markets had just collapsed and US exchanges were poised for some of the biggest declines in years.  The futures market indicated that a collapse of at least 600 points for the dow jones industrial average.  As I […]
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A Head Scratching FINRA Verdict

  Recently the National Adjudicatory Council (NAC)has been raising eyebrows with a variety of new rules, sanction guidelines and some decisions that are quite confusing to say the least.  Recently we wrote ‘Broker Beware” in which the NAC will now be recommending a lifetime bar for unsuitable trading and other infractions.  Last month the NAC issued a decision […]
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Capital for Keeps

Recently SIPA member and former SEC attorney Russel Weigel took some time out of his life to write a book that should be on the desk of every broker trying to navigate the complex world of capital raising. We have specials on the book just for SIPA members.   Click on the link below to […]
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6 billion settlement but no failure to supervise?

Today a major announcement was made regarding some of the largest banks in the world: YORK/LONDON/ZURICH (Reuters) – Four major banks pleaded guilty on Wednesday to trying to manipulate foreign exchange rates and six banks were fined a total of nearly $6 billion in a settlement that substantially ends a global probe into misconduct in […]
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FINRA needs to get out of FRAUD business

Recently we discussed in ‘Broker Beware” the new NAC guidelines that call for a lifetime bar for unsuitability and for cases involving fraud.  While we think this can lead to an influx of trial lawyers attacking small firms with over blown claims of unsuitability in order to get them to settle quickly, we believe that […]

Broker Beware !

New Enforcement Sanctions from NAC  Last week the FINRA’s National Adjudicatory Council (NAC) released a statement that increases dramatically the sanctions on individuals found guilty of fraud and unsuitability.   In the statement NAC said:   The revised Sanction Guidelines now advise FINRA adjudicators to strongly consider barring an individual respondent, or expelling a firm, for cases involving fraud. […]
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