On February 14, 2017, the Securities and Exchange Commission (“SEC”) announced that it had reached an agreement with Morgan Stanley Smith Barney (“Morgan Stanley”) to settle charges made by the SEC. Morgan Stanley agreed to pay an $8 million penalty and admit wrongdoing associated with inverse ETF investments that it recommended to advisory clients. In its… [Read More]
Morningstar Announces Intention to Cover Non-Traded REITs
According to a November 3, 2011, Investment News article by Bruce Kelly, Morningstar, Inc., has announced that it will begin covering non-traded REITs by the end of the first quarter of 2012. According to the article, Morningstar has hired Phillip J. Martin to lead Morningstar’s non-traded REIT coverage. The article includes a quote from a… [Read More]
Apple REITs Draw FINRA Enforcement Scrutiny
On May 31, 2011, the Financial Industry Regulatory Authority (“FINRA”) filed an enforcement action against David Lerner Associates, Inc. (“DLA”), a broker/dealer with offices in New York, New Jersey, Connecticut, and Florida. In its enforcement complaint, FINRA alleges that since January, 2011, DLA has recommended and sold over $300 million of shares in Apple REIT… [Read More]
FINRA Announces Enforcement Focus on Private Placements and Non-Traded REITs
Within the past two weeks, two top FINRA officials have announced the focus of FINRA enforcement on private placements and non-traded REITs sold by broker/dealers to their customers. According to an Investment News article by Bruce Kelly on February 2, 2011, James Shoriss, Executive Vice President and Executive Director of Enforcement for FINRA, announced in… [Read More]
A Call to Action for Investors Still Holding Auction Rate Securities
The auction rate securities market imploded in mid-February, 2008. Auction rate securities are debt instruments most commonly issued by municipalities, governmental agencies, student loan organizations, or closed-end mutual funds as preferred securities. Auction rate securities are long-term bonds for which the interest rate was regularly reset at auctions held every seven, fourteen, twenty-eight, or thirty-five… [Read More]
FINRA Announces SEC Approval of Rules Governing Know-Your-Customer and Suitability Obligations
In early January, 2011, the Financial Industry Regulatory Authority (“FINRA”) announced that the Security and Exchange Commission (“SEC”) had approved Rules 2090 – Know-Your-Customer – and 2111 – Suitability for inclusion in FINRA’s consolidated rulebook. The new rules become effective on October 7, 2011. Rule 2090 is new and is patterned after former NYSE Rule… [Read More]