By Mark J. Astarita, Esq. Suitability is an often misunderstood concept in the law. To most, it means that that brokers are required to ensure that their customers invest only in securities that are “suitable” for them. This oversimplification worries many brokers who, armed with this definition, often lament that […]
Compliance
Exemptions from Broker-Dealer Registration
We deal with the requirements and procedures to register as a broker-dealer in Guide to Broker-Dealer Registration there are a number of specific exemptions where such registration is not required. Issuer’s Exemption (Rule 3a4-1) Issuers generally are not “brokers” because they sell securities for their own accounts and not for […]
Regulating Regulators
The Courts act to protect the rights of the regulated By Mark J. Astarita Securities attorneys have often suffered the frustration of dealing with regulators who attempt to enforce rules which are unclear, and sometimes, unwritten. While the SEC, FINRA and the state securities authorities have broad powers to enforce […]
Hedging Your Bets – Creating a Hedge Fund?
Hedging Your Bets Is a Hedge Fund the Way Out of the Regulatory Nightmare? By Mark J. Astarita, Esq. Mark Astarita, Esq. is a nationally recognized securities attorney who represents investors, financial professionals, issuers and financial firms in a wide variety of matters involving federal and state securities laws. He […]
10b5-1 Plans Under Attack –
Who is watching your plan? By Mark J. Astarita, Esq. Recently the media has caught on to the newest regulatory trend – the investigation and review of 10b5-1 plans. These plans, created by the SEC when it adopted Rule 10b5-1 are used by hundreds, if not thousands of executives, and […]
Archives Restrictive Covenant Denied as Overbroad
Not unique employee, no geographic restriction, no injunction. S.G. Cowen Securities Corp. v. Messih, N.Y.L.Jnl., 5/24/00 (S.D. N.Y.): In the spring of 1999, Cowen hired Messih, a California resident, to be its Managing Director of Technology in its San Francisco office. They entered into an employment contract which expired on […]
NYSE Arbitrator Selection Pilot Ending
With only 15% of the cases using the alternatives, should the program be extended? NYSE PILOT ON ARB SELECTION: A two-year pilot program at the New York Stock Exchange is scheduled to expire on July 31, 2002. This program, which details three alternatives that parties may use, instead of the […]
NYSE Awards 10/02
Thirty Awards, Including a 9 Million Dollar Member-Member Award, and a Loss for a Customer in An Employee Stock Option Case Against Goldman NYSE AWARDS, 10/02: Among the 30 Awards released by the New York Stock Exchange’s Arbitration Department for the month of October 2002 were Awards depicting all types […]
Comments on California Suit
Comments on the Perino Report and the California Court Decision NYSE STATEMENTS RE CALIFORNIA ARBITRATION: Posted on the NYSE Arbitration WebSite are two new statements, one of which responds to the Perino Report and the Nov. 12 federal court decision in California and the other of which offers three options […]
NYSE Arbitration Awards
Twenty New Awards, Ten Awarding Damages to Customers Twenty Awards issued from the New York Stock Exchange’s Arbitration Department in February, ten of which awarded Claimants damages on their claims. Three of the losing Awards and one of the winners for customer-Claimants were the ML Media Opportunity Partners disputes that […]
