Industry Cases

DOL Fiduciary Rule Set to Shake Up Securities Industry

DOL Fiduciary Rule Set to Shake Up Securities Industry

On April 8, 2016, the Department of Labor (“DOL”) promulgated regulations designed to tackle the problem of “conflicted advice” in the retirement savings industry. Conflicted advice refers to the situation in which a securities broker or other “advice provider” [1] makes a  recommendation to a customer that is based, at least in part, on the advice provider’s own pecuniary…

Cease and Desist Orders: What Happens When State Regulators Get it Wrong?

Cease and Desist Orders: What Happens When State Regulators Get it Wrong?

Michigan’s securities regulators[1] are charged with enforcing the many provisions of the Michigan Uniform Securities Act of 2002 or “MUSA.” They have wide-ranging powers under the Act, including the power to issue cease and desist orders and levy fines. When the regulators exercise those powers, more often than not, it is to…

Broker Signing Bonuses Could Be Targeted in Trade Secret Litigation

Broker Signing Bonuses Could Be Targeted in Trade Secret Litigation

Trade secret litigation continues to be common place in the securities brokerage and investment advisory industry, notwithstanding the Protocol for Broker Recruiting. Most of the time, the disputes center around customer names and contact information. In a typical dispute, the broker departs one firm to join another, often for a…