July 24, 2021
From 2006 to 2011, Aegis Frumento, Esq. headed the department at Smith Barney that administered Rule 10b5-1 plans for the firm's customers, and he still advises clients on trading plans today. On June 7, 2021, SEC Chair Gary Gensler announced that he had asked the SEC Staff to "make recommendations . . . on how we might freshen up Rule 10b5-1." Gensler's announcement gives Aegis the opportunity to revisit an old question: why exactly do corporate executives trading in Rule 10b5-1 plans outperform the market?
A former Wells Fargo employee engaged in negligent conduct when he sought a Covid-related loan from the Small Business Administration. Although the loan was granted, it was never paid. On basketball courts all around the world, that falls under no-harm-no-foul. But FINRA is not a basketball court.
In a recent regulatory settlement, FINRA patiently presents its case -- and does so in compelling fashion. At issue is the supervision of a member firm's anti-money laundering compliance program and of the marketing of two private placements. FINRA alleges that the firm's CCO/AMLCO came up short. Based upon the allegations in the AWC, FINRA made its case and in a very thorough fashion. An excellent read for industry professionals.