What is the SIE Exam?

As mentioned in our previous post, What is on the Series 7 exam, the FINRA has restructured the examination process and implemented a new exam, the Securities Industry Essential exam (“SIE”).  On October 1, 2018, the SIE exam will become a prerequisite to all of the FINRA’s representative-level qualification exams (“rep-level exams”). PURPOPSE OF THE[…]

Large Trader – Rule 13h-1 (Part 2)

For Part 1, please see  Large Trader-Rule 13h-1 (Part 1).  Part 2 A large trader is required to file a Form 13H Initial Filing promptly after effecting aggregate transactions equal to or greater than the Identifying Activity Level threshold.  After initial filing, Rule 13h-1(b)(1)(ii) specifies that an annual filing must be made within 45 days after[…]

The Importance of a Chinese Wall in Multi-Service Securities Firms

Multi-service securities firms have a high risk of insider trading as information can seep through to other departments.  The antifraud provisions of the federal securities laws restricts all persons from trading based on material non-public information.  Therefore, multi-service securities firms such as those that offer investment banking, corporate counseling, and retail broker-dealer services must take the necessary steps to prevent the interdepartmental flows of material non-public information about corporate clients.  To prevent such occurrences, it is required that firms build an internal Chinese Wall. Read More…

After the SEC and Equifax Hacks, Firms Should Revisit Their Cybersecurity Program

Recently, two major cybersecurity breaches have been in the news which have been very unsettling for many Americans.  First, Equifax, one of the nation’s largest credit bureaus, was hacked exposing 143 million people’s financial data.  Second, the Securities and Exchange Commission’s (“SEC”) EDGAR filing system was hacked and it is believed that the hackers made off with information that was used to make money illegally in the stock market. Read More…

M&A Due Diligence Checklist

Critical in every M&A transaction is a comprehensive due diligence investigation.  An acquirer/buyer should always have a complete understanding of the all the intricacies of the target company, from operations to financial to legal.  Failure to conduct due diligence may lead to major unforeseen issues such as unknown liabilities or overpayment.  A buyer should never rely solely on information that the target company has provided but should take the necessary steps to validate.  It is important to have a M&A due diligence checklist to ensure that all major areas have been investigated and considered when making the decision to buy or not to buy a company. Read More…