SEC Appointment Of In-House Judge “Likely Unconstitutional”


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.” 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. 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.

Technology Lets Everyone Be Their Own BrokerDealer blog update courtesy of

One app is making it their mission to let everyone become their very own BrokerDealer with the use of their iPhone.

Robinhood, an iOS app that is going live in the App Store on Thursday. Robinhood uses swipes and taps to make trading stocks feel more like checking your email. Available just on iPhones (for now), the app re-imagines the brokerage as a mobile-only enterprise that fits in your pocket, where you keep the rest of your money. Whether making trades as accessible as Facebook updates is a good idea or not, the era of Touch-ID trading has arrived.

“We think it’s not a particularly engaging activity for a lot of people,” Robinhood co-founder Baiju Bhatt says of investing in the stock market. That alienation afflicts people in their 20s especially, Bhatt says. “If people don’t think about their finances and get involved with building a financial trajectory early in life, it’s kind of a substantial problem.”

In its run-up to launch, Robinhood has amassed a waitlist of a half-million would-be users, according to Bhatt.

Ease of access and understanding is meant to make Robinhood compulsively engaging for a new generation of investors that don’t find the stock market very accessible from the mobile screens at the center of their lives. It took me five minutes to sign up for an account, including a simple username-and-password interface for linking my bank account—no blank checks or routing numbers. The only lag time so far is waiting for the money to transfer into my trading account, which could take up to three business days, according to the app. Accounts do not require a minimum (1)

“As soon as people made one trade, we saw that they became daily users of the app,” co-founder Vlad Tenev says of Robinhood’s beta testers. On average, they started opening the app an average of twenty times per week, he says. “It’s more similar to looking at your email or your Twitter than, say, a banking or finance app.”

As the product develops over time, Bhatt says Robinhood will include features inspired by behavioral economics to nudge users toward smarter ways of managing their money.

But more important than teaching, he says, is letting new entrants to the market learn for themselves, to feel like their money is their own to use, move, and manage. “There’s just something very, very satisfying feeling like I have my investments right there in my pocket.”
For the complete article from click here.

Ex-LPL broker pays up defrauding clients blog post courtesy of and Mason Bradwell 



A former LPL Financial broker has been ordered to pay nearly $2 million in disgorgement and penalties after being accused of bilking clients of nearly $1.7 million. Continue reading