How Long Does it Take to Get a FINRA Suspension Lifted? A FINRA suspension typically carries a defined term, either (i) a certain number of days or months, or (ii) until a certain event…
No. While arbitration and enforcement proceedings may involve similar subject matter, they have different primary purposes. Arbitration is the method used by securities industry participants to resolve private claims; enforcement actions focus on regulatory…
Closing a FINRA investigation does not automatically remove an existing customer complaint from your CRD or BrokerCheck record. While FINRA permits expungement under limited circumstances, the process is difficult, and, unlike many other types…
Does an employee have to participate in a voluntary SEC interview? No. The federal government cannot require employees (or anyone else) to participate in a voluntary SEC interview; SEC staff request such interviews, and…
Federal preservation duties arise not upon the filing of a lawsuit, but when litigation is reasonably anticipated, which frequently occurs well in advance of any case being filed in court. In Zubulake v. UBS…
Receiving an SEC subpoena unmistakably triggers an immediate obligation to preserve potentially responsive documents and data. This includes everything from computer files and cloud storage to hard-copy files and server backups. At this point,…
No, there is no federal law that requires the recipient of a Wells notice to hire an attorney. The fact that the SEC does not require you to have legal representation doesn’t mean that…
A witness may generally decline to participate in a voluntary interview or provide voluntary records. However, an SEC subpoena is not self-enforcing; the SEC may seek a court order compelling compliance. Testimony provided to…
Director and Officer Liability in SEC Enforcement Actions SECinvestigations can target a company, its officers, directors, and other employees and consultants. The U.S. Department of Justice also targets companies, officers, directors, and other employees…
Whistleblowers can tip off the SEC without proving a securities violation; any actionable allegation or even credible suspicion can trigger an investigation. Defending effectively against SEC whistleblower allegations requires prioritizing several key steps: 1.…