Compliance

Until the Investment Adviser Registration Depository is adapted to handle the influx of advisors converting to state registration, not much will get done.

FINRA has fined UBS Financial Services $2.5 million and ordered to pay $8.25 million in restitution for conduct related to the sale of Lehman Brothers Holdings principal protection notes.The fine and restitution is tied to alleged misleading of investors that took place in the sale of the principal protection notes, or PPNs, prior to Lehman Brothers’ Sept. 2008 bankruptcy filing. The PPNs promised a minimum return equal to an investor’s investment, according to FINRA, and were structured as fixed-income security structured products including bonds and options.

FINRA ordered Santander Securities of Puerto Rico to pay $2 million in fines and review its procedures that resulted in customer losses.

UBS will pay up $2.5 million in fines and $8.25 million in restitution for allegedly botched sales of Lehman Brothers principal protection notes.

The nation's stock exchanges and the Financial Industry Regulatory Authority Wednesday filed a proposal with the Securities and Exchange Commission to establish a new "limit up-limit down" mechanism that would limit swings in stock prices, during periods of volatility. Under the proposal, trades in listed stocks would have to be executed within a range tied to recent prices for that security.

Wells Fargo Securities will pay $11 million in penalties for misrepresenting—and overcharging for—two complex debt products tied to housing industry performance. The penalties were related to “misconduct in the sale” of two collateralized debt obligations, when the housing market was beginning to swoon in late 2006 and 2007. The conduct by Wachovia Capital Markets, as the unit then was known, violated securities laws in two ways, the SEC said.

An Oregon CPA has pleaded guilty to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering with his business, misusing over $44 million of customer funds and causing 91 of his customers to lose $13.7 million.

The Municipal Securities Rulemaking Board’s draft rule on gifts and gratuities could shut down muni advisers, the municipal market’s largest financial adviser is ­warning.

The nation’s stock exchanges and the Financial Industry Regulatory Authority Wednesday filed a proposal with the SEC to establish a new “limit up-limit down” mechanism that would limit swings in stock prices, during periods of volatility.

The nation’s stock exchanges and the Financial Industry Regulatory Authority filed a proposal to establish a new “limit up-limit down” mechanism that would limit swings in stock prices, during periods of volatility.

In a proposed new rule regulating the use of third-party service providers, the self-regulatory agency for broker dealers, says that outsourcing doesn’t relieve a broker-dealer from its regulatory obligations.

Lawmakers on Tuesday moved forward with two legislative efforts to overhaul the U.S. tax code, which would either halt, or threaten, tax-exemption for new muni bonds.

Independent financial advisors are criticizing the Municipal Securities Rulemaking Board’s draft changes to its rule on gifts and gratuities, warning they don’t go far enough to eliminate conflicts of interest.

The House Financial Services capital markets subcommittee was expected to pass as early as late Tuesday eight bills intended to jump-start reform of the government-sponsored enterprises despite efforts by Democrats to oppose the measures.

A Financial Industry Regulatory Authority hearing panel expelled a California broker-dealer from the securities industry, for failing to implement and enforce an anti-money laundering program.

A New York judge has dismissed a class action lawsuit against State Street as the sponsor of a mutual fund, saying that even though the mutual fund misrepresented its risks, investors were not harmed. That's because the fund correctly calculated its net asset value.

Certified financial planners, instructors, sponsors and those looking to become certified this week are getting their first look at the updated requirements mandated by the Certified Financial Planners Board of Standards for the organization's ethics continuing education programs.

PALM DESERT, Calif.-Eileen Rominger, in her first appearance before a gathering of members of the mutual fund industry's largest trade group, said that compliance with existing and forthcoming rules as well as robust regulation of these is essential to achieving and maintaining the trust and confidence of investors.

PALM DESERT, Calif.-At the start of 2010, the Securities and Exchange Commission established a specialized unit within its Enforcement Division devoted to the looking for fraud and other perfidies in the $40 trillion field of asset management

Fund managers who think that only brokerage firms and banks should worry about the operational and technological changes being wrought by the Dodd-Frank financial reform legislation had better think twice.