Tag Archives: FINRA

Maurice Wutscher’s Brady Hermann Discusses Compliance Concerns Over Brokers’ Excessive Trading in Own Accounts

May 6, 2022 ­— Maurice Wutscher attorney Brady Hermann spoke to AdvisorHub recently about the termination of a broker for excessive trading in his personal account and why brokers who trade frequently in their own accounts should tread carefully.

The Financial Industry Regulatory Authority requires firms to keep track of brokers’ trading as a way of protecting clients’ interests.

Mr. Hermann said compliance departments are paying attention to what financial advisors do in their personal accounts, looking for potential red flags that could lead to harmful conduct in client accounts. This is especially true if a broker is on heightened supervision.

“When brokers are on this heightened supervision, they have, obviously, a set of rules that they have to follow, and then if they break it, they typically get fired,” Mr. Hermann told AdvisorHub.

Brady Hermann is senior counsel in the Boston and New York offices of Maurice Wutscher LLP. He regularly represents financial services companies including banks, broker-dealers, financial advisors, financial asset buyers and third party debt collectors in individual, class action and regulatory matters. He has successfully represented clients throughout the country against claims for violations of securities laws, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Fair Credit Reporting Act, and various state consumer protection statutes.

Maurice Wutscher’s Brady Hermann Quoted About Brokers’ Efforts to Vacate FINRA Award

Feb. 24, 2022 ­— Maurice Wutscher attorney Brady Hermann was quoted in a recent AdvisorHub article about two brokers’ attempt to vacate a Financial Industry Regulatory Authority award denying their request to expunge termination language their former employer included on their Form U5.

The brokers argued the award, issued in November 2021 by a FINRA panel, should be vacated as the arbitrator who chaired the panel failed to disclose his prior work for their former employer.

Mr. Hermann said an arbitrator’s failure to disclose his contract work for the company over a decade ago was unlikely to be considered a substantial relationship with a party and, therefore, they were unlikely to succeed on vacating the award.

Brady Hermann is senior counsel in the Boston and New York offices of Maurice Wutscher LLP. He regularly represents financial services companies including banks, broker-dealers, financial advisors, financial asset buyers and third party debt collectors in individual, class action and regulatory matters. He has successfully represented clients throughout the country against claims for violations of securities laws, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Fair Credit Reporting Act, and various state consumer protection statutes.

Maurice Wutscher’s Brady Hermann Quoted About Brokers’ Promissory Note Cases

Jan. 17, 2022 ­— Maurice Wutscher attorney Brady Hermann was quoted in a recent AdvisorHub article about promissory note cases involving brokers who leave for competing firms and the risks brokers face in fighting them.

“It’s not uncommon for a departing broker to try to extricate themselves from note obligations, even though counterclaims are rarely successful and often lead to a broker paying more than if they had reached an agreement with their firm when they left,” Mr. Hermann said.

“’These tend to be very clear cut cases and usually result in the broker being liable for significantly more than the outstanding balance on the note since arbitration panels typically award firms interest, costs and attorneys’ fees pursuant to the terms of the promissory notes,’” he said.

Brady Hermann is senior counsel in the Boston and New York offices of Maurice Wutscher LLP. He regularly represents financial services companies including banks, broker-dealers, financial advisors, financial asset buyers and third party debt collectors in individual, class action and regulatory matters. He has successfully represented clients throughout the country against claims for violations of securities laws, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Fair Credit Reporting Act, and various state consumer protection statutes.

Maurice Wutscher’s Brady Hermann Quoted About Investment Bank’s Suits Against Defector Brokerage Teams

Nov. 17, 2021 ­— Maurice Wutscher attorney Brady Hermann was quoted in a recent AdvisorHub article about an investment bank seeking injunctions in New York state court against brokers leaving to join rival firms.

“If [the bank] has gotten the impression that firms are ‘continuously poaching’ its advisors, it’s predictable that the bank would seek to ‘send a message,'” Mr. Hermann told AdvisorHub. “It also sends a warning to [its] other . . . brokers that, ‘You’ve got to be careful about switching.’”

Brady Hermann is senior counsel in the Boston and New York offices of Maurice Wutscher LLP. He regularly represents financial services companies including banks, broker-dealers, financial advisors, financial asset buyers and third party debt collectors in individual, class action and regulatory matters. He has successfully represented clients throughout the country against claims for violations of securities laws, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Fair Credit Reporting Act, and various state consumer protection statutes.

Maurice Wutscher’s Brady Hermann Quoted About Finra Zoom Arbitration Hearings

Sept. 7, 2021 ­— Maurice Wutscher attorney Brady Hermann is quoted in an AdvisorHub article regarding a reluctance among lawyers to use Zoom in Finra arbitration hearings.

From the beginning of the pandemic in March 2020 through July 31, 2021, data from the Financial Industry Regulatory Authority show that in 57%, or 453, of the 792 cases in arbitration, one of the parties objected to having the hearing on Zoom, opting to delay until in-person hearings resumed.

Finra resumed in-person hearings on Aug. 2 but still gives the option for a Zoom hearing if both parties agree.

Mr. Hermann, who represents broker-dealers at Finra arbitration, said “[m]ost parties are not going to be in favor of it.”

“Over Zoom, attorneys find it difficult to read body language, to make sure everyone’s paying as close attention as they should,” he said. “It makes it a little bit more difficult, making sure everybody’s looking at the right exhibit or the right section of each exhibit.” 

Brady Hermann is senior counsel in the Boston and New York offices of Maurice Wutscher LLP. He regularly represents financial services companies including banks, broker-dealers, financial advisors, financial asset buyers and third party debt collectors in individual, class action and regulatory matters. He has successfully represented clients throughout the country against claims for violations of securities laws, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Fair Credit Reporting Act, and various state consumer protection statutes.

Maurice Wutscher’s Brady Hermann Quoted About Broker’s Client Solicitation Dispute

Aug. 6, 2021 ­— Maurice Wutscher attorney Brady Hermann is quoted in an AdvisorHub article regarding a client solicitation dispute in U.S. District Court in Oregon between an investment management firm and a broker it previously fired.

The investment manager is seeking a temporary restraining order to prevent the broker from soliciting former clients.

Mr. Hermann, who is not involved in the case, said brokers must tread carefully when speaking to former customers.

“If [he] simply provided his new contact information, that likely would not be considered a solicitation,” he said. “However, if during the conversation he discussed the benefits of moving their account, or the benefits his new employer can provide that [the former manager] cannot, that could certainly be viewed as a solicitation.”

Brady Hermann is senior counsel in the Boston and New York offices of Maurice Wutscher LLP. He regularly represents financial services companies including banks, broker-dealers, financial advisors, financial asset buyers and third party debt collectors in individual, class action and regulatory matters. He has successfully represented clients throughout the country against claims for violations of securities laws, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Fair Credit Reporting Act, and various state consumer protection statutes.