The Law of the Financial Markets from Top Securities Lawyers
Wednesday, April 23, 2025
Securities arbitrations, in fact, all arbitrations, are conducted in the same manner that a court trial is held, without some of the formalities. There are opening statements, first by the attorney for the claimant (typically a customer) and then by the respondents (the broker and/or his firm). The openings are […]
In recent years, markups have become a growing concern for regulators, and brokerage firm markup policies and procedures have come under increasing scrutiny from the SEC and the NASD. Essentially, a markup, or markdown, is the amount of money above (or below) the “inside” market that a broker dealer may […]
Churning is excessive trading in a customer’s account by a broker taken in the context of the customer’s financial situation and investment objectives. While no one test is available to determine if an account has been churned, churning requires three elements, first, excessive trading, and second, control of the account […]
Even coupled with the ever popular “I didn’t know it was a crime” defense, an Investment Advisor loses. Lessons in securities regulation for the self-help minded. By Mark J. Astarita, Esq. Too often I hear clients, or more appropriately, potential clients, explain to me that they did not use an […]
Compliance with securities regulations is only the beginning By Mark J. Astarita, Esq. Introduction Cold calling is a method of marketing a service or product by calling prospective clients “cold” – that is, without an introduction, to determine if the potential client has a need for, or interest in, the […]
You can take steps to avoid being sued by your customers. By Mark J. Astarita, Esq. Introduction Since the United States Supreme Court Decision in MacMahon v. Shearson American Express, arbitration has been the preferred method of resolving customer disputes. In fact, today nearly every brokerage firm in the country […]
You may need a court order to enforce an arbitrator’s award By Mark J. Astarita, Esq. Arbitration awards are not, by themselves, enforceable in a court of law. The prevailing party must have the award “confirmed” by a court. The procedure is relatively simple and is governed by state and […]
NASD Adjudicatory Council Strikes Case Because of Delays Follows SEC Lead in Upholding Rights to Due Process and Fundamental Fairness after 7-year delay in commencing proceedings. By Mark J. Astarita, Esq. Delays by regulators in bringing enforcement actions is a recurring problem for brokers and firms, as well as their […]
A question I am often asked is what is the definition of a finder, or questions that lead to that question. The issue arises when an unregistered person or entity introduces investors to an issuer and seeks to obtain payment based on the investment made by the investor. The problem […]
Even coupled with the ever popular “I didn’t know it was a crime” defense, an Investment Advisor loses. Lessons in securities regulation for the self-help minded. By Mark J. Astarita, Esq. Too often I hear clients, or more appropriately, potential clients, explain to me that they did not use […]
