Today's Highlights

Friday Featured Stories - Nov 6

After the jump, read the following stories that were featured in recent daily newsletters:

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

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1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

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1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

1. Are Forgeries at Broker-Dealers on the Rise?   [WWW, 10/22]
2. Scottrade Fined over AML Practices.  [WWW, 10/26]
3. Muni Regulation, Enforcement Plagued by Split Nature.  [RULE, 10/30]

   _________________________________________________

Market Watch: Bank, Brokerage Stocks - C-I Index

11/6 Prices ..... Day's Changes ..... 52-Wk Low/Hi

	* 38 (+ 0)				Ameriprise (AMP)		12 – 38
	*  20 (+ 0)				TD Ameritrade (AMTD)		9 – 21
	*  15 (+ 0)				Bank of America (BAC)		3 – 22
	*  23 (+ 1)				Barclays (BCS)		3 – 26
	*  27 (+ 0)				Bank of NY Mellon (BK)		15 - 34
	* * 4 (+ 0)				Citigroup (C)		1 - 13
	*  56 (+ 1)				Credit Suisse (CS)		19 - 60
	*  72 (+ 0)				Deutsche Bank (DB)		21 - 85
	* * 2 (+ 0)				E*Trade Fincl (ETFC)		1 - 3
	* 172 (- 2)				Goldman Sachs (GS)		47 - 194
	*  57 (+ 1)				HSBC Holdings (HBC)		23 - 60
	*  43 (+ 0)				JPMorgan Chase (JPM)		15 - 47
	*  33 (+ 0) *  12 (+ 1)				Morgan Stanley (MS) Royal Bk Scotland (RBS)		9 - 36     3 - 21
	*  17 (+ 0) *  17 (+ 0) *  17 (+ 0) *  27 (+ 0)				Chas. Schwab (SCHW) Banco Santander (STD) UBS AG (UBS) Wells Fargo (WFC)		11 - 20     5 - 18     7 - 19     8 - 33
	C-I Index    650 DJIA 10,023 Nasdaq   2,112				+0.3% +0.2% +0.3%

Opportunities for 'Out-of-work' Professionals

"Out-of-work" financial services professionals - consider 2 special offers from Compliance Insights.

(i) Special Subscription Rate - Pay only $75/year (50% saving) for C-I Membership.

(ii) Opportunities to Write for Compliance Insights -  Submit news briefs/stories, take-aways we can post to our Web site. 

Please Note.  These offers are strictly limited to those individuals presently "out-of-work" and not affiliated/registered with a broker-dealer, investment advisor, or other firm or entity serving the financial services community.  Details and contact info available after the jump.

First Reports - Nov 5

SEC's Schapiro:  Ahead of the Curve with Life Settlements - - -  SEC Chairman Mary Schapiro is championing the fight against the emerging market in life settlement transactions.  Take Away.   [BTN]

FINRA's Ketchum: Next Generation of OATS - - -  The securities markets are undergoing structural changes, and the "primary market concept" - with a single price discovery market - is giving way to fragmentation that's characterized by an increasing number of genuine liquidity centers.   [BTN]

RULE Briefs - - -  Nasdaq Options:  The Market Open Process;  ISE:  Narrow-Based Indexes;  ISE: Market Maker Guidelines;  SEC:  Report on Administrative Proceedings;  SEC:  Fee Rate Advisory #3.   [RULE]

BD, IA Renewals for 2010 - - -  The 2010 renewal process begins on 11/16, when online Preliminary Renewal Statements are made available to all firms on Web CRD/IARD.  Get Linked.   [RULE]

Proposed Rule Changes re: Disciplinary Proceedings, Arbitration Hearings - - -  FINRA Rule 9251, Inspection and Copying of Documents in Possession of Staff;  FINRA Rules 12601/13601, 12902/13902, Dispute Resolution, Customer and Industry Codes.   [RULE]

TD Ameritrade: Using QVC to Sell Wealth Management Product - - -  On a recent Saturday morning, QVC cable viewers could buy designer purses, custom jewelry and a TD Waterhouse wealth management webinar hosted by financial advise guru Suze Orman. 

[C-I Note:  Just thinking about the risk exposure, though.]  [WHO]

Wall Street Lawyers, Traders Charged in $20M Insider Trading Ring - - -  The SEC charged 2 lawyers, 6 traders and a proprietary trading firm for their involvement with a $20mn insider trading scheme.  It apparently started with Arthur Cutillo, an attorney in Ropes & Gray's New York office, ...   [WWW]

Friday Featured Stories - Oct 30

After the jump, read the following stories that were featured in recent daily newsletters:

1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

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1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

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1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

   _________________________________________________

1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

   _________________________________________________

1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

   _________________________________________________

1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

   _________________________________________________

1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

   _________________________________________________

1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

   _________________________________________________

1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

   _________________________________________________

1. FINRA Fines vs. Broker-Dealers: October Reports (Part 2 of 2).  [WWW, 10/16]
2. Social Networking Sites – Compliance Issues, a Starting Point to Manage Them.  [BTN, 10/19]

   _________________________________________________

First Reports - Nov 4

REPEAT WARNING.   FTC's RED FLAGS RULE IS DEFERRED - - -  The Federal Trade Commission (FTC's) June 2010.  [C-I Note:  Federal regulators could have done a better job communicating this important news.] 

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FINRA's Ketchum: More Disclosure, WSP Enhancements - - -  FINRA Chairman, CEO Rick Ketchum told a SIFMA conference audience that the financial industry needs to sit under a sun-lamp and "rethink a number of long-standing businesses practices, and focus on complying not only with the letter of the laws, but also the spirit unpinning them."   [C-I: Sounds good.]    Take Away.   [BTN]

RULE Briefs [CBOE] - - -  CBSX:  New Opening Time;  CBOE: New Linkage Plan and ISO's;  CBOE: Member Supervision of Clients with System Access;  CBOE:  Temporary Membership and Interim Trading Permits;  CBOE: Futures-Linked Securities.   [RULE]

WHO Briefs - - -  HSBC's Job Cuts;  Broadridge Sells Off Clearing Operations;  BofA General Counsel Wasn't Legal;  Should it Matter?  TD Waterhouse Acquires OMX Securities;  SIFMA's New Head of Asset Mgmt Group.   [WHO]

ING's 3 B/Ds Acquired by Former PaineWebber Chief - - -  Donald Marron, the former chairman, CEO of PaineWebber Group, who now runs PE firm Lightyear Capital, agreed to buy 3 independent broker-dealers from ING Groep NV.   [WHO]

SEC's New Examinations Sheriff on Wall Street - - -  Norm Champ is the new Associate Regional Director for Examinations in the SEC's New York Regional Office. 

"Now, someone who actually understands their business is going to be in charge of examining it," said BusinessInsider reporter Erin Smith.   [WHO]

Nasdaq's New Social Network - - -  Nasdaq has launched a financial networking community on its Web site - offering market commentary, investment analysis and social tools to help members interact with content through ratings, discussions and personalization.   Get Linked.    [WHO]

JPMorgan, 2 Former MD's, Charged with Illegal Payments - - -  The SEC charged JPMorgan Securities Inc. and 2 former managing directors for their roles in an unlawful payment scheme that enabled them to win business involving muni bond offerings and swap agreement transactions with Jefferson County, AL.   Get Linked.  [WWW]

FINRA Bars Broker for Insider Trading - - -  Abhishek Uppal, a former investment banker with Piper Jaffray, was barred for engaging in insider trading earlier this year.   [WWW]

First Reports - Nov 3

FTC's False Alarm:  Red Flags Rule Deferred  - - -  The Federal Trade Commission (FTC's) Red Flags Rule, once again has pushed back the start date for enforcing its Identity Theft Red Flags Rule, mandated by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).   Take Away.   [RULE]

Edward Jones, Wells Fargo Advisors, Goldman Sachs Take Home Honors - - - At its Annual Meeting, SIFMA awarded each firm with a Diversity Leadership Award.   [WHO]

Madoff News:  An Auditor's Lament - - -  David Friehling and Friehling & Horowitz, CPAs, P.C., auditors for Bernie Madoff, agreed not to contest SEC charges that they enabled Madoff's fraud, by intentionally by-passing some relevant accounting principals and auditing standards.  Take Away.   [BTN] 

FINRA Prioirities:  Examining for Fraud  [Part One] - - -  FINRA Chairman and CEO Rick Ketchum told a SIFMA conference audience in New York that new examination procedures have enhanced FINRA's efforts to identify and fight fraud.   [BTN] 

WHO Briefs - - -  We're working on the following stories:  E*Trade Withdraws TARP Application;  Goldman Names Prime-Broker Chief;  UBS's New U.S. Wealth Chief;  UBS Planning for a Paine Webber Spinoff;  SIFMA's New Lineup of Officers, Directors;  LPL Pays Victims of RR's Ponzi Scheme.   [WHO]

First Reports - Nov 2

FTC's Red Flags Rule 'Goes Live' !!?? - - -  The Federal Trade Commission's (FTC's) Red Flags Rule, which implements obligations imposed by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), was scheduled to go into effect November 1, 2009.   Get Linked.  [RULE]

RULE Briefs - - -  ARS Market: Cost of Freeze Hits $64B;  NYSE Arca: Obligations of Lead Market Makers;  NYSE Arca: Expansion of Options Penny Pilot Program;  MSRB: EMMA's Search Function Features;  CFTC: FCM, IB Electronic Filing Regulations;  Nasdaq, NOM, Phlx:  Expanded Sponsored Access.   [RULE]

NYSE: Supervision of Securities, Commodities Accounts - - -  NYSE Regulation reminds NYSE and Amex members about their obligations under NYSE Rule 407 and Amex Equities Rule 407, as they relate to trading by members, employees and associated persons in personal accounts and commodities accounts.   [RULE]

CBOE:  Supervision of E-Communications, E-Storage of Records - - -  CBOE members who are not members of FINRA are reminded about their obligations regarding electronic storage and supervision of books and records, and specifically re: e-communications.   [RULE]

BofA Broker-Dealer, Supervisor Failed on Heightened Supervison - - -  Banc of America Investment Services, Inc. (BAI), a wholly-owned retail brokerage subsidiary of BofA Corporation, and Virginia Holliday, a former market director for its OSJ in Addison, TX, settled SEC charges that each had failed to reasonably supervise a former RR who misappropriated over $1.3mn from BAI customers' accounts.   [WWW]

First Reports - Oct 30

Boo to You! - - -  (i) Happy Halloween, you Trick-or-Treaters;  (ii) Don't forget to switch your clocks and watches to Daylight Savings Time on Sunday - so be sure to "fall back;"  (iii) Run, Baby, Run - you New York City marathoners;  (iv) Enjoy the 'World Serious', coming at you from Phila., PA;  (v) Rest up, you Compliance types - FAA's FACT Act begins 11/1 after several false starts.

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SEC Priorities - Part 2:  Retirement Products - - -  SEC Chairman Mary Schapiro told attendees at SIFMA's Annual Conference in New York that the SEC must be on the lookout for newly emerging risks - particularly those related to retirement investing.  Get Linked.   [BTN]

SEC Priorities - Part 3:  ABS Regulation - - -  SEC Chairman Mary Schapiro told attendees at SIFMA's Annual Conference in New York that the SEC wants to fill any and all gaps in the asset-backed securities (ABS) market.  Get Linked.   [BTN]

FINRA's Monthly Fines, Sanctions: Associated Persons [Part Two] - - -  In October, FINRA reported fines and sanctions against 71 individuals; 16 were principals or supervisors (23%). Here are more stories, including violations for postings to an Internet bulletin board and failure to report receipt of a large gift.   Get Linked.  [WWW] 

Muni Regulation and Enforcement Plagued by Split Nature - - -  The idea of empowering the Municipal Securities Rulemaking Board is gathering steam in Washington, D.C., New York and elsewhere.   Take Away.  [RULE]

First Reports - Oct 29

Registration Question:  A Series 24 exam waiver for a recruit was denied.

Can you direct us to a FINRA or NYSE rule that allows for exam waivers if the associate has been away for more than 2 year and, during that time, was under the jurisdiction of another SRO (NYSE EuroNext)?  

Replies to ... howard@compliance-insights.com.  [Note:  We may post anonymous responses on the C-I Web site. 

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Boys from the City of 'Brotherly Love" Show Bx Bombers How Game is Played - - -  In game one, the better team won.  Tonight is Game Two.  Which team will wear the "shaving cream pie?"

RULE Briefs [FINRA] - - -  CEP Regulatory Element Fees;  Arbitrations: Correcting Deficient Claim Filings;  Arbitrations: Selecting a Hearing Location.   [RULE]

Four Eyes Now Trained on Firms Trading the U.S. and French Markets - - -  FINRA and Autorite des Marches Financiers signed a memorandum of understanding (MoU) establishing a formal basis for cooperation between the 2 regulators.  [WHO]

OATS Telephone Conference - - -  Plan on attending next week's Educational Telephone Conference Call on the newly updated OATS Web Interface.  Get Linked.   [RULE]

Big Law Merger Talks - - -  Two international law firms are in high-level merger talks in a more that would create a behemoth with 2,500 lawyers.  [WHO]

Annual CEP Planning - - -  FINRA member firms that are developing their Firm Element training needs analysis have access to several new resources on the FINRA Web site.  Get Linked.   [RULE]

SEC Priorities:  Market Structure - - -    SEC Chairman Mary Schapiro told attendees at SIFMA's Annual Conference in New York how the SEC will conduct its market structure initiative: conducting market studies and investigations, proposing new or amended rules, recommending new legislation.  Get Linked.   [BTN]

FINRA's Monthly Fines, Sanctions: Associated Persons  [Part One] - - -  In October, FINRA reported fines and sanctions against 71 individuals; 16 were principals or supervisors (23%).  Here are their stories, including: (i) the RR who violated a Reg. D Selling Agreement;  and, (ii) the Principal who backdated an annual certification.  Get Linked.   [WWW]