Spotify Preps For Rumored IPO With Videos And New Services

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As rumors continue to circulate about whether or not Spotify, a commercial music streaming company, will launch an IPO later this year, more and more seem to believe that they will launch as they make large changes to their services.  Originally from Sweden, Spotify,  is available in 58 countries and is currently the leading provider of streaming music by subscription. It offers millions of songs in two versions: free with advertising, and an all-access paid version that in most countries costs about $10 a month. Spotify currently has around 60 million users around the world, 15 million of which pay. As for now Spotify hasn’t announced plans for an IPO and refuses to comment on the matter but most speculators think it is in our near future. This brokerdealer.com blog update profiles the new services Spotify is adding that could help boost the company for an IPO. This update is courtesy of The New York Post’s article, “Spotify launching video, news services ahead of IPO” by  Claire Atkinson, with an excerpt below.

Let’s go to the video, Spotify’s chief exec says.

The world’s biggest audio music streamer, with 60 million active users, said Wednesday it decided to broaden its offering, in part to capitalize on Americans’ long commutes, Spotify’s CEO told The Post in a private interview.

“A lot of Americans are sitting in their cars for a long time,” explained CEO Daniel Ek, who was in New York to announce at a press conference a slew of new business initiatives with the help of Tiësto, D’Angelo and Questlove.

“Tens of millions had connected to Spotify via Bluetooth but they still didn’t play music their entire drive,” said Ek, adding that heavy Spotify users wanted news, weather, traffic and podcasts, too, so he approached content providers about what they could offer.

The streaming music giant wants to expand its user base in advance of a much-hyped IPO, looking to take on the likes of Snapchat, YouTube and Facebook with a collection of video clips.

To continue reading about the changes in services for Spotify as they could soon launch an IPO, click here.

69 Red Flags Raised Before Action Was Taken Against Ponzi Scheme Involved Broker

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Brokerdealer.com blog update profiles broker, Jerry A. Cicolani Jr, who just recently was barred from the broker industry. Normally this wouldn’t be unusual, except it took 69 complaints filed against Cicolani before the Finra, or the FBI, finally did something about it. Not only had Cicolani received 69 complaints in his record, but he also was involved in a Ponzi Scheme as well. This brokerdealer.com blog update is courtesy of The New York Times’ Susan Antilla and her article, “Many Years of Overlooked Red Flags Catch Up to Stockbroker“. An excerpt from the article is below.

There are many brokerdealers who are Finra, SEC, and FBI compliant, to find one of those click here. 

In most professions, it would take only one or two acts of egregious conduct before troubled employees were shown the door. In the case of one stockbroker who has repeatedly had complaints from investors, it took 69 customer disputes filed over the last 13 years before he was barred from the business.

The stockbroker, Jerry A. Cicolani Jr., had complaint after complaint documented in his formal record. Regulators and employers spotted red flags. Yet the organization primarily responsible for monitoring the nation’s 637,000 brokers, the Financial Industry Regulatory Authority, did not bar Mr. Cicolani until September 2014.

The Securities and Exchange Commission had already sued him, in May 2014, over his role in a Ponzi scheme. His most recent employer, PrimeSolutions Securities, based in Cleveland, fired him a day after that lawsuit was filed. And his customers had lodged complaints as far back as 2002.

To continue reading about the legal implications Mr. Cicolani is now facing, click here

Broker Dealers Support Finra’s Move For Tougher Sanctions

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Brokerdealer.com blog update profiles the broker dealer industry’s support for tougher sanctions for violations of the suitability rule. It is the industry’s hope that these tougher sanctions will elevate the industry. This brokerdealer.com blog update is courtesy of InvestmentNews’ article, “Brokers back regulator’s tough stance on suitability” by Mark Schoeff Jr., with an excerpt below.

Brokers endorsed a move by their regulator this week to toughen sanctions for violations of the suitability rule even as they acknowledged the standard leaves room for interpretation.

The Financial Industry Regulatory Authority Inc.(FINRA) on Tuesday revised its Sanctions Guidelines, which included raising its suggested suspensions to two years from one for brokers making unsuitable recommendations. It also strongly advises possible barring of brokers and expulsion of firms for fraudulent activity.

Cracking down on suitability violations will help clients, said Jeremy Gottlieb, owner of Gottlieb Wealth Management. In reviewing investments of clients transferring to his firm, he often sees evidence that their portfolios were built on the basis of product sales rather than what is in their best interest.

To continue reading about these tougher sanctions that are being backed broker dealers everywhere, click here.

2 SEC Commissioners To Exit

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Brokerdealer.com blog update profiles the shake up in one of the brokerdealer’s governing bodies, the Securities and Exchange Commission (SEC), is about to get. The White House is already in search of a replacement for Democratic commissioner Luis Aguilar and now they will also have to find a replacement for Republican commissioner Daniel Gallagher. This brokerdealer.com blog update is courtesy of InvestmentNews’ article, “SEC’s Daniel Gallagher resigning as commissioner“, with an excerpt below.

Daniel Gallagher is resigning his post as a Republican member of the Securities and Exchange Commission after four years, a time marked by partisan battles over the regulatory response to the 2008 financial crisis,according to three people familiar with the matter.

The White House will now need to replace him as well as Luis Aguilar, the Democratic commissioner whose term expires next month. The departures herald a transformation at the agency, which has struggled to write dozens of new regulations arising from the 2010 Dodd-Frank Act.

Mr. Gallagher, 42, plans to remain on the five-member commission until a successor is confirmed, a process that could take several months, the people said. The White House has already identified candidates to fill both his and Mr. Aguilar’s seats.

A securities lawyer and ex-agency staff member, Mr. Gallagher has been a critic of many of the rules required by Dodd-Frank. Known for his forceful dissents and speeches, he frequently rapped the Federal Reserve for trying to impose its oversight on firms traditionally regulated by the SEC.

While Mr. Gallagher clashed with former Chairwoman Mary Schapiro on policy matters, he has a less-strained relationship with current SEC chief Mary Jo White. He was instrumental in negotiating a compromise overhauling rules for money market mutual funds in July 2014, passed during Ms. White’s tenure.

To continue reading about the leadership leaving the SEC, click here.

SEC And Finra Team Up To Host BrokerDealer Compliance Outreach Program

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Brokerdealer.com blog update profiling the SEC and Finra announced the opening of registration to attend their National Compliance Outreach Program for BrokerDealers this summer. The program will host regulators and industry professionals as they discuss ideas for compliance structures in the industry. This brokerdealer.com blog update is courtesy of  LeapRate’s article, “SEC and FINRA to hold national compliance outreach program for Broker-Deale” by Andrew Saks-McLeod, with an excerpt below.

The Securities and Exchange Commission and the Financial Industry National Regulatory Authority (FINRA) today announced the opening of registration for their 2015 National Compliance Outreach Program for Broker-Dealers. The program is intended to provide an open forum for regulators and industry professionals to discuss compliance practices and exchange ideas on effective compliance structures.

The SEC’s Office of Compliance Inspections and Examinations (OCIE), in coordination with the SEC’s Division of Trading and Markets, is sponsoring the program with FINRA. The program will be held on July 14 at the SEC’s Washington D.C. headquarters and will focus on 2015 priorities for OCIE and FINRA as well as current topics of interest including cybersecurity, anti-money laundering, and firms’ approaches to supervision and sales practices.

“This program provides an invaluable opportunity to facilitate discussions between regulators and industry participants on important issues affecting the brokerage industry, to promote compliance with federal securities laws, and to enhance investor protection,” said Kevin Goodman, National Associate Director of OCIE’s broker-dealer examination program. “Past programs have been well attended and well received, and we look forward to a candid exchange of ideas with participants at our upcoming event.”

To continue reading about this event hosted by the SEC and Finra, click here.