The Blog Of The Securities Industry Professional Association

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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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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 […]


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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The rule of any transaction since the days of Caesar  has always been “Buyer Beware.  The rise of the stock market the last few years has us thinking the same thing.  Is the economy really this good that the markets have doubled in the last five years?  Donald Trump was elected President largely because of […]
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  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 […]


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 […]


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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FINRA Finally Listening to the SIPA

  FINRA board to discuss an arbitration fund for investors  For many years the SIPA has analyzed the actions and rules of FINRA and we have always been left puzzled as to how they cannot see the answer staring them in the face.  In some instances, they have taken a simple problem and made it […]
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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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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 […]

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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  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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Anti Money Laundering Follies

Is it time to stop the charade?  The recent horrific attacks in my hometown of Orlando served as a reminder of how vulnerable we really are.  Whether it’s flying on a plane, going to a theme park or taking mass transit, we are all vulnerable to Islamic terrorist attacks.  Sure, there are things we can […]

The City Beautiful

ORLANDO STRONG!  As a longtime resident of Orlando, I have grown to love the place they call “The City Beautiful”. For many years I too labored under the false idea that Orlando was the city of Mickey Mouse and that the only thing to do was go to amusement parks.  In 2000 I took a […]
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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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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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The Year that was 2015

Happy New Year?  It never ceases to amaze me how we become so sentimental on December 31st each year but by January 2nd we are back to our grind of running around, shopping , working, stressing and losing our patience with each other. All day today and tomorrow we will greet everybody we encounter with […]
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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 […]

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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Know when to hold ‘em, Know when to fold “em

Risk vs Reward when dealing with FINRA   We have seen yet another increase in the ‘Death Penalty” being issued by FINRA to firms across the county for a variety of reasons ranging from failure to supervise to failure to do anything.  How did we get to this point whereby almost all actions appear to […]
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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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So my Dad would have been 76 today.  I wish I could say its been getting better since he left us a few years ago, But that’s just not the case. Its tough to be a father and you really can’t take the proper time to grieve because you have to take care of your […]

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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Securities and Exchange Commission’s Cyber Security Guidance

Securities and Exchange Commission’s Cyber Security Guidance By Doug Kamin, Senior Compliance Consultant Regulatory Compliance On April 28, 2015 The Securities and Exchange Commission (“SEC”) Division of Investment Management released Cybersecurity Guidance IM 2015-02 for registered investment companies (“Funds”) and registered investment advisers (“Advisers”). Earlier this year the SEC announced that cybersecurity would be an […]
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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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  FINRA recently launched with much fanfare its toll free senior hot line. WASHINGTON—The Financial Industry Regulatory Authority (FINRA) has launched the toll-free FINRA Securities Helpline for SeniorsTM to provide older investors with a supportive place to get assistance from knowledgeable FINRA staff related to concerns they have with their brokerage accounts and investments. Senior […]

Republican “To Do” List

Victory last night offers promise and potholes, especially to Broker Dealers  As I watched the results from the election pour in last night from across the country, I had this sudden wave of Déjà vu  sweep over me.  For some reason I have experienced this same euphoria and reaction to a political landslide before but […]
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Steven Thornton for NAC

The SIPA ia proud to support Steven Thornton for the NAC.   He is a small firm owner and SIPA member who has been a supporter of your causes for years.  Please print and fax his petition as soon as possible so he can be added to the ballot.  This petition is only to have […]
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Under the recent SEC No-Action Letter, What exactly can an “Un-Licensed” M&A Person Do?

    Part 1 – The Rules.  (Coming Next Week – An M&A Engagement Template)   M&A Brokers facilitate mergers, acquisitions, business sales, and business combinations (together, “M&A Transactions”) between sellers and buyers of privately-held companies, without regard to the size of the privately-held companies  Definition: An “M&A Broker” is a person engaged in the […]
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Expungement and Amnesty

    Expungement of records being curtailed The SEC recently approved FINRA rule 2081 which severely limits the expungement of broker records in making settlements with customers.   The new rule will no longer allow an expungement of the customer complaint from the broker’s record as a condition for settlement.  On the surface this would appear […]
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FINRA Election For Small Firms

Now more then ever, make your voice heard! As we have in the past, the SIPA is urging all members to have your voice heard loud and strong and to use your vote wisely.  We have been approached by Paige Peirce and Carrie Wisniewski regarding their quest to be placed on the ballot.  Remember, this […]
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