Definition of a Security: It’s All in the Family (Resemblance Test)

This article is the first in an occasional series on the definition of a “security.”  The answer is important.  When a financial instrument qualifies as a security, it unlocks a set of laws and regulations that would not otherwise apply.  These include two statutes that are discussed extensively below: the Securities Act of 1933 and …

Regulatory Analysis: FINRA Rule 3270 – Disclosure of Outside Business Activity (Part II)

Author’s Note: This article is part of an occasional series on specific rules and regulations governing financial professions.  It is also the second in a multi-part analysis of FINRA Rule 3270.  Part II will analyze portions of the rule’s text that were not discussed in Part I, examine the content required for a notice under …

Regulatory Analysis: FINRA Rule 3270 – Disclosure of Outside Business (Part I)

Author’s Note: This article is part of an occasional series on specific rules and regulations governing financial professions.  It is also the first in a multi-part analysis of FINRA Rule 3270. THE RULE FINRA Rule 3270 – Outside Business Activity of Registered Persons No registered person may be an employee, independent contractor, sole proprietor, officer, …

The Nature and Extent of Arbitral Immunity

While the COVID-19 pandemic has shuttered much of the country’s judicial machinery, courts have released opinions on matters argued prior to the stoppage.  Two recent federal court opinions – Cherdak, out of the D.C. District[1] and Lanza, decided by the First Circuit[2] – touched on an issue with relevance to financial professionals: arbitral immunity.  This …