SEC Appointment Of In-House Judge “Likely Unconstitutional”

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Secruities and Exchange Commission could face potential problems after a federal court ruled that its appointment of an in-house judge to preside over administrative insider trading cases was “likely unconstitutional.”

BrokerDealer.com update profiles what could turn into a legal brouhaha as the SEC’s recent strategy to use internal arbitrators could prove to be a major conflict of legal interest, as U.S. District Judge Leigh Martin May’s decision Monday that the SEC may not have the authority to divert such cases from regular courts halted its action against a Georgia real-estate developer. Charles Hill was accused of profiting from trades made after he received a tip from a friend. He sued in Atlanta federal court to block the administrative action.

BrokerDealer.com provides a comprehensive global database directory with information for thousands of broker-dealer firms in more than 30 countries throughout the free market world.

The SEC has increasingly been using its five administrative-law judges to hear its cases, rather than sending them to federal court, legal experts said. Although the ruling was preliminary, and won’t necessarily be duplicated in other federal courts, it could have ramifications for other SEC cases and potentially other federal agencies.

The decision is the first by a federal judge to find the SEC’s in-house tribunal could breach the Constitution. Previous constitutional challenges to the SEC’s system of judges, based on different legal arguments, have been inconclusive or unsuccessful.

To read more, check out this article by the WSJ.

The First Crypto Corporate Bond Offering..aka Bitcoin Bond from Overstock

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BrokerDealer.com profiles retailer Overstock.com’s plan to issue the first crypto corporate bond deal using the technology that underlies cryptocurrencies such as bitcoin.

Below extract is courtesy of Finextra.com. BrokerDealer.com provides the world’s database of broker-dealers registered in the US as well as a comprehensive directory of non-US brokerdealers based in 30+ countries throughout the globe.

Last Autumn, the firm acquired a 25% stake in alternative trading system (ATS) PRO Securities as part of a long-term ambition to use the core blockchain technology to create a cryptosecurity trading system, in which computer algorithms are used to trade virtual stocks issued by public companies.The company is now scouting institutional investor interest in its first digital bond issues, which is powered by Overstock.com’s TØ.com technology – a name that refers to the fact that trades on the system securely settle the same day, as opposed to the T+3 convention on Wall Street.”The cryptorevolution has arrived on Wall Street,” says Overstock.com CEO Patrick Byrne. “We’re making it official by offering the world’s first cryptosecurity.”According to Byrne, issuing the TIGRcub bonds on the TØ.com platform proves that cryptotechnology can facilitate transparent and secure access to capital by emerging companies. He says that a circular informing investors of the cryptobond offering was distributed on 1 June, 2015.

Finra Launches Ad Campaign For BrokerCheck

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BrokerDealer.com update profiles this week’s MadMen style-campaign by Finra in their effort to encourage investors to use Finra’s BrokerCheck platform in advance of engaging a particular registered broker-dealer. Below is the excerpt from InvestmentNews.com.

Finra launched an advertising campaign on Monday to encourage investors to research their brokers before hiring them, but some industry observers said Finra’s database doesn’t provide enough information.

BrokerDealer.com provides a global database of broker-dealers registered in the US as well as those performing brokerdealer services in upwards of 30 major countries throughout the world.

The digital, print and television ads promote BrokerCheck, an online database managed by the Financial Industry Regulatory Authority Inc. The database provides employment and disciplinary history about brokers, as well as their certifications and licenses.

The ads are hitting the airwaves just days after Finra submitted a rule to the Securities and Exchange Commission for final approval that would require brokers to include a link to BrokerCheck on their websites and brokers’ profile pages.

A print ad will run in Tuesday’s Wall Street Journal. Digital ads will appear on financial-news websites as well as search engines.

For the full coverage from InvestmentNews.com, please click here

The 2015 Broker-Dealer Presidents Poll: What Independent BD leaders Really Think

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BrokerDealer.com update profiles ThinkAdvisor.com 5th Annual survey of what independent BD presidents are really thinking…

For the fifth year, we asked the presidents of independent broker-dealers what’s on their minds.

Broker-dealer presidents are fierce competitors, and while they may cooperate in areas of advocacy—as they do notably as members of the Financial Services Institute—they all want nearly the same representatives. That’s their real business, after all: recruiting new reps, just as reps’ real business is recruiting new clients.

BrokerDealer.com provides a global directory of broker-dealers in more than 30 countries

For five years now, Investment Advisor has solicited independent broker-dealer leaders for their opinions on the challenges facing their firms, and the main challenges facing their reps, in both the shorter term and the longer term.

We present the findings of this year’s survey in the pages that follow, but with five years of data in our hands, we think we can discern a few patterns as well.

Here’s an example: Each year, we asked the presidents which association or organization best represented the IBD industry’s interests, especially in the nation’s capital. In the first few years, FSI was cited first by 80% of respondents, SIFMA and FINRA were in the high single digits and the FPA was even mentioned by 5% of the presidents. This year and last, however, the now 11-year-old FSI is in the high 80% range, while FPA was cited by exactly zero presidents. Other answers have changed over the past five years, and we invite you to visit ThinkAdvisor.com to see additional charts on what has changed in our Broker-Dealer Presidents Poll.

Questions posed:

1. What issue do you feel is the most challenging to your firm businesswise in the short term (next 18 months)?

2. What issue do you feel is the most challenging to your firm businesswise in the long term (next three to five years and beyond)?

3. What issue do you feel is the most challenging to individual reps in the short term (next 18 months)?

4. What issue do you feel is the most challenging to individual reps over the long term (next three to five years and beyond)?

5. Which industry association/entity do you feel is most essential to advancing your point of view, especially in Washington, D.C.?

6. Are you confident that the independent broker-dealer model will remain viable?

For the complete coverage from ThinkAdvisor.com, please click here

 

Broker Dealer Firm Acquires The Producers Choice In A Move That Will Boost Control Over Annuities

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Brokerdealer.com blog update profile broker dealer firm, Raymond James Financial Inc, making big moves in the industry as it announced Friday, that it would acquireing The Producers Choice. This move made Friday will help  the broker dealer firm gain greater control over the way annuities are wholesaled to advisers. This brokerdealer.com blog update is courtesy of InvestmentNews’ article, “Raymond James bolsters indexed annuities and life wholesaling with acquisition“, by Darla Mercado. With an excerpt from the article below.

Looking to step up its indexed annuities and life wholesaling game, Raymond James Financial Inc. announced Friday it would acquire The Producers Choice, an insurance marketing organization.

The deal is expected to close mid-summer, and Producers Choice will act as part of Raymond James Insurance Group. Sixty Producers Choice employees will join the firm.

The acquisition addresses two major objectives for Raymond James, which has partnered with Producers Choice for nine years: It gives the broker-dealer greater control over the way annuities are wholesaled and marketed to Raymond James’ advisers, and the firm will have the opportunity to work with Producers Choice’s client base of independent insurance agents, broker-dealers and banks.

To continue reading about Raymond James acquistion of The Producers Choice from InvestmentNews, click here.