Overview
Carlton Fields attorneys handle FINRA regulatory investigations and enforcement matters across the country. We also handle FINRA arbitrations of industry and customer disputes and appeals of FINRA matters, and our clients include broker-dealers, registered representatives, and associated persons.
We handle all stages of FINRA proceedings, from responding to informal and formal requests for information, representing clients during on-the-record testimony, and representing clients through the Wells process, hearing preparation, and FINRA enforcement hearings, to appeals of National Adjudicatory Council decisions to the SEC. We also advise broker-dealers and associated persons on Form U4/U5 matters, including BrokerCheck disputes. Our team of lawyers includes former FINRA directors and litigation counsel, and several former high-level SEC attorneys from the SEC's divisions of enforcement, corporation finance, investment management, trading and markets, and the trial unit.
Experience
FINRA Enforcement
Represented broker-dealers in FINRA matters alleging violations of FINRA's suitability rules and Regulation Best Interest involving alternative investments.
Represented broker-dealers in FINRA matters alleging violations of federal securities laws or FINRA rules, including supervision of registered representatives, fraud and theft detection and prevention, market timing, firm recordkeeping, untimely responses to Rule 8210 requests, and undisclosed outside securities accounts.
Represented a broker-dealer in a FINRA matter alleging negligent fraud in a public offering.
Represented broker-dealers in FINRA matters alleging various supervisory and books-and-records violations.
Represented broker-dealers and associated persons in FINRA matters alleging other violations of FINRA rules, and advised on Forms U4 and U5 issues.
Represented a broker-dealer in a FINRA matter involving supervisory procedures, sales practices, and operational issues.
FINRA Arbitrations
Represented broker-dealer firms and management personnel in NASD and FINRA customer and industry arbitrations, including (i) an industry dispute that went to an approximately two-month evidentiary hearing and (ii) a high net worth customer arbitration that went to an eight-day evidentiary hearing in 2014, resulting in the dismissal of all claims following the conclusion of the claimant's case-in-chief.
Represented a broker-dealer against an associated person's claims of disability and national origin discrimination and retaliation.
Represented broker-dealers and associated persons in three NASD arbitrations involving misrepresentation, selling away, state and federal securities law claims, or suitability claims.
Represented a life insurer in an NASD arbitration and successfully argued pre-hearing for the client's dismissal on jurisdictional grounds.
Represented a broker-dealer and associated persons in a wrongful termination FINRA arbitration in which the claimant also alleged defamation.
Represented a wholesaler of variable insurance products in a FINRA arbitration brought by a high net worth individual.
Represented a broker-dealer in an NASD and FINRA arbitration involving the sale of funding vehicles for a 412(i) defined-benefit retirement plan, and advised the broker-dealer on its response to a subsequent regulatory investigation.
Represented a broker-dealer in an NASD and FINRA arbitration alleging fraud and unsuitability in connection with sales of purported "high-risk" investments subject to market losses.
Represented an associated person in a seven-day industry FINRA arbitration in an employment and breach of contract dispute.
FINRA Appeals
Represented an associated person in an appeal to the SEC of a FINRA disciplinary action in which the hearing panel found the associated person cheated on a qualification examination and imposed a permanent bar.
Represented an associated person in an appeal to the SEC of a FINRA disciplinary action in which the hearing panel found the associated person engaged in private securities transactions for a hedge fund and imposed an 18-month suspension.
Represented a broker-dealer in an appeal of an adverse FINRA award to federal district court.
Represented a broker-dealer in parallel SEC, NASD, and state securities department investigations and related civil litigation involving alleged theft of client funds by a former registered representative.
Other FINRA Matters
Represented a broker-dealer in a federal class action alleging that it had a conflict of interest in sponsoring analyst reports covering companies with which it had other business relationships. State claims were dismissed under SLUSA.
Represented a broker-dealer in an internal investigation of a registered representative who did not obtain approval of outside business activities, including being named as beneficiary of a client account, as required by firm procedures.
Prosecuted an adversary proceeding on behalf of a FINRA trustee to recover fraudulent transfers by the former head of a defunct clearing broker.
Represented a financial services client in connection with threatened state securities law charges relating to the alleged failure of affiliates to obtain state licensing as broker-dealers or investment advisers.
