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Brokers News

First Union Securities Renamed Wachovia Securities

Name Change Effective May 2002 By Rick Weinberg First Union Securities will announce Wednesday that it has been renamed Wachovia Securities, Registered Rep. magazine has learned. The name change is effective May 2002. First Union is the retail brokerage arm of Wachovia Corporation, along with IJL Wachovia. The firm, the […]

News

NASD Extends Margin Disclosure Deadline

  By John M. Baker, Esq. NASD Regulation announced on May 27, 2001,an extension to the deadline of the margin disclosure statement requirement for existing customers: For those non-institutional customers who were margin customers of the firm prior to June 4, 2001, members are required to provide the disclosure statement, […]

Arbitration News

Arbitration Agreements and Enforcement

  To Compel Arbitration, Must Prove Knowing Acceptance of the Agreement This time, merely proving that the agreement was signed was not enough. Braga v. VMR Capital Markets, No. B144584 (Cal. App., 2Dist., 2/13/02). Arbitration Agreement * Contractual Issues (Mutual Assent) * Waiver * State Law, Applicability of * FAA […]

News

Broker and Supervisor Liable for Customer Conduct

Failing to Stop Wash Sales and Matched Orders Leads to Disciplinary Proceedings By John M. Baker, Esq. The U.S. Court of Appeals for the D.C. Circuit on Friday affirmed an SEC order finding a registered representative and her supervisor responsible for a customer’s improper trades. Graham v. SEC, No. 99- […]

Mutual Funds - ETFs News

GAO Report on Mutual Fund Fees Released

Makes Recommendations for Improved Disclosure By John M. Baker, Esq. The General Accounting Office released its long-awaited, and long (132 PDF pages), report on mutual fund fees. GAO, Mutual Fund Fees: Additional Disclosure Could Encourage Price Competition, No. GAO/GGD-00-126 (June 2000). The report notes that most investors have focused on […]

Arbitration News

Court Upholds Prehearing Dismissal of Clearing Broker

“Clearing firms are generally not responsible to customers for the actions of an introducing broker” Warren v. Tacher, C.A. No. 3:99-CV-806-R (W.D. Ky., 6/2/00): We mentioned this recent ruling in this well-known arbitration case in last week’s Arbitration Alert (00-26). The Award under challenge in this proceeding constituted the largest […]