White Paper - 2006 In Review: SEC, NASD, and NYSE Regulation
Selected Enforcement Cases and Developments Regarding Broker-Dealers
This Morgan Lewis White Paper focuses on selected U.S. Securities and Exchange Commission (SEC), NASD, and NYSE Regulation cases and developments in 2006 regarding broker-dealers. The number of disciplinary actions against broker-dealers varied by regulator in 2006. The SEC brought fewer cases this year than it did in 2005; NYSE Regulation initiated a slightly higher number of actions; and the NASD has not yet released statistics for 2006, but indications are that the number of cases it brought during the year may have declined compared to the number of cases brought in 2005.
In terms of scope, in 2006 regulators brought cases in several traditional areas (including sales practices and supervision), seemingly completed the string of actions in other areas (market timing, late trading, and directed brokerage), and opened up new areas of investigation (PIPEs, Regulation SHO, and proxy voting).