Unregistered Advisers: A Potential Trap for Unaware Investors and Custodian Broker-Dealers

By: DWH Legal Since the 2008/2009 financial crisis, many former financial advisors, portfolio managers and investment adviser representatives have elected to branch out on their own and serve as independent investment advisers.  Often times, these investment advisers fall below the SEC registration requirement of $25 million assets under management but, importantly, fail to consider registering as advisers in the state…

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The SEC Highlights Growing Concerns About Private Tech Startup Funding To Eager Investors

By: DWH Legal On Wednesday, at the annual Securities Regulation Institute conference in Coronado, California, Securities and Exchange Commission Chair Mary Jo White shared the agency’s growing  concern about the aggressive promotion of private tech startup companies to investors.  The SEC’s concern centers around investors unable to receive sufficient or accurate information when choosing to make investments. Many tech startups…

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Proposed Rule Change to Amend FINRA Rule 2210 (Communications with the Public) to Require BrokerCheck Link on Member Websites

On June 29, 2015, FINRA filed with the SEC a proposed rule change to amend FINRA Rule 2210 (Communications with the Public) to require that member firms include BrokerCheck links on their websites. The new proposal, if approved, would require, “a readily apparent reference and hyperlink to BrokerCheck on: (i) the initial webpage the member intends to be viewed by…

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The Recent Omnicare Decision Evaluates When an Opinion Stated in a Registration Statement Gives Rise to Liability Under Section 11

On March 24, 2015, the Supreme Court issued the decision Omnicare, Inc. v. Laborers District Counsel Construction Industry Pension Fund. The seminal opinion evaluates how the truth or falsity of statements of opinion should be considered under the securities laws. The case arises out of a registration statement Omnicare filed in connection with its 2005 public offerings of common stock.…

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PIABA Announced its Support for the Passage of the Investor Choice Act – H.R. 1098

On February 26, 2015, Rep. Keith Ellison (D-MN) introduced proposed bill H.R. 1098 titled the Investor Choice Act (the “ICA”).  The ICA is the latest attempt to statutorily prohibit the enforcement of pre-dispute arbitration provisions and to provide investors with the ability to select the forum (either arbitration or the court) to resolve their disputes with the brokerage firms.  Further,…

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