Defense Against Regulatory Enforcement Actions

Regulatory Compliance Lawyers Serving Michigan, Florida, New York and Texas

The attorneys of the Hertz Schram PC Securities Team provide all levels of registration and compliance support to FINRA member broker-dealers, from advice in the formation of their business entity to preparation for annual reporting and biannual self-regulatory organization (SRO) audits, and to stress testing and "first responder" services.

Our Michigan regulatory compliance lawyers author written supervisory procedures custom-fit to the actual needs of your sales force. For firms with existing procedures and policies, we provide frank and constructive independent forensic analysis to help you determine if your compliance and supervisory systems are reasonably designed to review and monitor your employees' business practices and to detect and prevent violations of FINRA rules as well as state and federal securities laws.

Handling compliance issues in Michigan, Florida, New York and Texas.

Working to Ensure FINRA Compliance

FINRA Rule 3011 Anti-Money Laundering (AML) requires independent testing for compliance with the rule either annually or every two years, depending on the nature of your firm. Hertz Schram PC's experience with best practices for operations staff and broker-dealer relations with clearing firms can help your firm strengthen a key component of your supervisory system. AML compliance is often your first set of eyes, and effective maintenance of your program can save you money.

FINRA Rule 3012 requires you to submit an annual report to your firm's senior management, outlining and detailing your present system of written supervisory procedures, summarizing the results of operational tests of the effectiveness of those procedures in detecting potential violations of FINRA rules and state and federal regulations. The report must also include detailed statements regarding your findings and proposed changes to your procedures. The need for sound and timely advice in this area is of critical importance. FINRA and state and federal securities regulators place particular emphasis on issues of managerial supervision of registered persons, particularly with regard to the firm's handling and reporting of heightened supervision. This is especially important when you consider that, in recent years, failures in this area have led to chief compliance officers and even general counsel being fined or censured by FINRA.

Once you have completed the tests, corrections and annual report to senior management required by FINRA Rule 3012, FINRA Rule 3130 requires annual certification by your firm's CEO. The CEO also shares in the responsibilities of your firm's compliance and legal staff, as well as its senior management to ensure the integrity and day-to-day practicability of your firm's policies and procedures. Ultimately, in addition to his or her responsibility to regulators, your CEO must also keep a close eye on potential litigation and issues within the firm that may pose a threat to it from a legal or compliance standpoint.

The Hertz Schram PC Securities Team, which includes former compliance officers and general counsel, as well as former claimants' attorneys, is uniquely positioned to help you protect your firm. In addition to helping with FINRA registration and compliance issues, our nationwide attorneys provide defense representation for broker-dealers. Our job is to make your job safer and more manageable.

Call for an Initial Consultation

Contact our office today to discuss your broker-dealer compliance questions with one of our lawyers. You can reach our firm by phone at 248-494-4486 or via e-mail.