Corporate & Securities Law

Regulator's First Enforcement Action Relating To Mortgage-Backed Securities Is Just The Beginning

By James Eccleston

The recent enforcement action by FINRA (the Financial Industry Regulatory Authority) against two brokers from a now defunct small brokerage firm normally might have come and gone with little fanfare.  But this action, which FINRA itself headlined, ?First Enforcement Action Arising from FINRA?s Ongoing Investigations Into Abuses in Marketing and Sales of Mortgage-Backed Securities? surely promises more to come.  In addition to barring two brokers from the industry and suspending another at SAMCO Financial Services, Inc. -- the opening act ? FINRA clearly is unveiling the fruits of its labors associated with a targeted examination request sent to brokerage firms nationwide.  Let's examine what the fuss is -- and will be -- about.

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Full post as published by FinancialCounsel on September 30, 2008 (boomark / email).