Securities Law Related Blogs

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Norman Meyer (Meyer), currently associated with Ni Advisors / Vestech Securities, INC., has at least one disclosable event. These events include one customer complaint, alleging that Meyer recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a pending customer complaint with a damage request of $650,000.00 on July 18, 2024.’, ‘Unsuitable investments in variable annuities and non-traded REITS. Basic statements received from investments. Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to…

On April 21, 2025, Paul Atkins, President Trump’s nominee, was officially sworn in as the 34th Chair of the Securities and Exchange Commission. Atkins, who previously served as an SEC Commissioner from 2002 to 2008 during the George W. Bush administration, brings extensive prior SEC experience to his new post. In many ways that are already in evidence at the SEC in the early days of the Trump administration, the new leadership is likely to result in many significant changes in direction at the agency. One area that is particularly likely to see significant changes is with respect to cryptocurrency and other digital assets. Indeed, in the first days of his new administration, President Trump signed an Executive Order signaling an intent to approach crypto-related issues with a lighter touch. The then-acting SEC Chair, Mark Uyeda, launched a crypto task force, to be headed by SEC Commissioner Hester Pierce, charged with creating a clearer regulatory framework for…

StratCap Digital Infrastructure REIT: Investigating Claims StratCap Digital Infrastructure REIT Inc., a non-listed, publicly registered perpetual-life REIT focused on digital infrastructure, reported a net asset value (NAV) of $122.31 million as of March 31, 2025, marking a 1.18% decrease from the previous month, according to Alt Wire. The NAV per share also reportedly declined 0.94% to $10.2317. Formerly known as Strategic Wireless Infrastructure Fund II, the REIT reportedly converted from a private offering earlier in 2025. It invests in data centers, cell towers, wireless easements, and fiber networks. As of March 31, it owned 41 towers, two data centers, and 61 tenant leases, plus a 51% interest in a joint venture with DataCom LP covering 139 towers, two rooftops, and 204 leases. The data centers were fully leased, while towers and rooftops were 35% occupied. The REIT reported total assets of $153.57 million and is conducting a continuous public offering of up to $575…

The U.S. Securities and Exchange Commission (SEC) has signalled a new approach to its regulation of shareholder proposals, especially as they relate to social impact issues. In Staff Bulletin No. 14M, the SEC simplified the procedure for companies to exclude shareholder proposals and expanded the scope of what is considered “excludable.” Background Rule 14a-8 sets out rules for when and how shareholder proposals must be included in shareholder meeting materials. It generally allows companies to exclude shareholder proposals that relate to the ordinary business operations of the company, on the basis that such matters are best left to management and the board to decide. Companies often submit no-action requests to the SEC seeking reassurance that the staff will not recommend enforcement action on the basis of excluded proposals. In 2021, the SEC issued Staff Bulletin No.14L advising that, in deciding whether a company is permitted to exclude a shareholder…

Putting aside the 2020 COVID selloff, investors have enjoyed a historic climb in the stock market across the last sixteen years. The recent volatility isn’t fun for investors, especially those in or nearing retirement. Whether the return of such volatility is simply a return to historic norms (when we used to experience regular bull and bear cycles), or the product of other (temporary) forces, the effect is the same for investors. In English: a loss in your portfolio feels lousy, no matter the cause. Good and bad financial advisors alike tell worried clients to “ride it out,” and to wait for the markets to return before selling securities or exiting the market altogether. That advice is great sometimes, and other times it’s simply a cover for a bad financial advisor caught out in the down market. The rising markets hide all sorts of ill-conceived investments. All too often, the cliché “a rising tide lifts all boats” rings true.…

On 21 March 2025, the Financial Conduct Authority (FCA) announced a comprehensive market study into the distribution of pure protection products to individual retail customers (MS24/1.2). This initiative aims to ensure that the market functions effectively and that consumers receive fair value and good outcomes from these products. The study puts commission arrangements, in particular, under the spotlight. The products which will be of primary focus in the market study are: Term assurance Critical illness cover Income protection insurance Whole of life insurance Rationale In 2023, around £4.85 billion was paid out in claims on pure protection individual policies (according to data from the Association of British Insurers). While the FCA considers that there have been generally good outcomes (with over 95% of new consumer claims being paid out on some products e.g., term assurance) and few complaints from consumers, concerns persist in respect of…

On 22 April 2025, the Prudential Regulation Authority (PRA) published Policy Statement PS5/25 – Identification and management of step-in risk. Background Previously, the PRA consulted in CP23/23 on the identification and management of step-in risk, shadow banking entities and groups of connected clients. Chapter 2 of CP23/23 included proposals to: Introduce new rules on step-in risk based on the relevant Basel Committee on Banking Supervision’s (BCBS) guidelines. (Step-in risk is the risk that a bank provides financial support to an unconsolidated entity that is facing stress, in the absence of, or in excess of, any contractual obligations to provide such support.) Under the new rules, CRR firms and CRR consolidation entities would be required to assess their step-in risk and report their assessment to the PRA alongside their Internal Capital Adequacy Assessment Process (ICAAP) assessment. Introduce an accompanying supervisory statement (SS), also based…

On 17 April 2025, the Prudential Regulation Authority (PRA) updated its webpage on stress testing to note that it has published two stress test scenarios for use by banks and building societies that are not participants in the Bank of England’s concurrent stress testing exercise. The PRA explains that the scenarios are derived from the 2025 Bank Capital Stress Test scenario, which was published on 24 March 2025 to support concurrent stress testing of the largest UK banks and building societies. The scenarios are intended to serve as a template and severity benchmark for firms to support their own internal capital adequacy assessment process stress testing scenario design processes. There are links to the scenarios on the stress testing webpage.

On 17 April 2025, the Pensions Dashboard Programme (PDP) announced that the first pensions dashboard provider has finalised its connection to the pensions dashboard ecosystem. The connection is in line with the staged timetable set by the Department for Work and Pensions (DWP) and the PDP notes that it follows the completion of three ‘volunteer participants’ connection journeys in March 2025, which paved the way for scheme and provider connections from April. More providers and schemes are registered and are currently in the pipeline for connection in April 2025, in line with guidance issued by DWP. 

On 17 April 2025, the Financial Conduct Authority (FCA) published Primary Market Bulletin 55 which includes a guidance consultation (GC25/1) on proposed changes to its Knowledge Base and on digital reporting for annual financial statements, as well as final guidance (FG25/1) on changes that were consulted on in Primary Market Bulletin 53. The deadline for responses to GC25/1 is 15 May 2025.

On 17 April 2025, the Prudential Regulation Authority (PRA) published an update on a modification by consent of the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook in relation to third country covered bonds. The PRA had previously, on 8 April 2025, offered a modification by consent that would allow certain third country covered bonds under Article 11(1)(d) of the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook to be included in Level 2A High Quality Liquid Assets (HQLA), subject to a cap on the amount recognised.  It has since received several technical comments and requests for clarification, and has consequently decided to pause the process and withdraw the modification so that it can consider and appropriately address the points raised. The PRA plans to clarify its approach once that process is complete. In the meantime, the PRA explains that firms do not need to amend their approach to recognising third country covered bonds under the Liquidity…

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Adrian Munoz (Munoz), previously associated with Merrill Lynch, Pierce, Fenner & Smith Incorporated, has at least one disclosable event. These events include one customer complaint, alleging that Munoz recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a settled customer complaint on July 20, 2024. The customer alleges failure to follow instructions related to the investment of funds from a rollover. Continue Reading

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Stanley Schofield (Schofield), currently associated with Nylife Securities LLC, has at least one disclosable event. These events include one customer complaint, alleging that Schofield recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a pending customer complaint on July 17, 2024. The Customer alleged he received poor advice when he purchased variable annuities in November 2022, June 2023, and March 2024, which led to losses. The customer seeks a return of principal without surrender charges Continue Reading

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Robert Reich (Reich), currently associated with Nylife Securities LLC, has at least one disclosable event. These events include one customer complaint, alleging that Reich recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a pending customer complaint on July 17, 2024. The Customer alleged he received poor advice when he purchased variable annuities in November 2022, June 2023, and March 2024, which led to losses. The customer seeks a return of principal without surrender charges. Continue Reading

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Varshil Sanghavi (Sanghavi), previously associated with Newbridge Securities Corporation, has at least one disclosable event. These events include one customer complaint, alleging that Sanghavi recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a pending customer complaint with a damage request of $50,000.00 on July 19, 2024. Breach of contract, breach of fiduciary duty, violation state securities statues, and vicarious liability. Continue Reading

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Felipe Colon (Colon), previously associated with LPL Financial LLC, has at least one disclosable event. These events include one customer complaint, alleging that Colon recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on July 22, 2024. Customer alleges during the time period 2015-2024, representative recommended investments that were unsuitable for the customer’s investment profile and risk tolerance. Continue Reading

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Wilson Kwok (Kwok), currently associated with Wells Fargo Clearing Services, LLC, has at least one disclosable event. These events include one customer complaint, alleging that Kwok recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a pending customer complaint on July 17, 2024. Claimant alleges that from 2022, the FA breached his fiduciary duty by recommending unsuitable investments and misrepresenting the nature of those investments. Continue Reading

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Scott Taubman (Taubman), previously associated with Ameriprise Financial Services, LLC, has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Taubman recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a final customer complaint on July 19, 2024. Without admitting or denying the findings, Taubman consented to the sanction and to the entry of findings that he borrowed $62,500 from two senior customers, without prior notice to or written approval from his member firm. The findings stated that the terms of the loans were not documented. The customers were not immediate family members or a financial institution. Taubman firm learned of the loans and conducted an investigation, during which Taubman confirmed that he had…

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Kitty Stough (Stough), currently associated with Nylife Securities LLC, has at least one disclosable event. These events include one customer complaint, alleging that Stough recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a pending customer complaint on July 22, 2024. The Customer alleges he was misled regarding the cost of a rider when he purchased his variable annuity in February 2020. Continue Reading

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Thomas Hartfield (Hartfield), previously associated with Western International Securities, INC., has at least one disclosable event. These events include one customer complaint, alleging that Hartfield recommended unsuitable investments in different investment products including debt securities among other allegations and complaints. FINRA BrokerCheck shows a pending customer complaint with a damage request of $400,000.00 on July 18, 2024. Customer alleges that an investment recommendations were unsuitable. Continue Reading