Miriam Rozen

The Financial Industry Regulatory Authority (FINRA) has proposed allowing brokerage firms to delay transactions or fund disbursements for up to 10 days when there is reasonable suspicion of fraud. The measure would apply to all customer accounts, regardless of age or capacity and requires approval from the U.S. Securities and Exchange Commission. FINRA also proposed extending the maximum hold period for transactions involving customers 65 and older or those with impairments from 55 to 145 business days. The regulator cited increasingly sophisticated fraud schemes, including those powered by AI, as a growing threat to investors.

The Financial Industry Regulatory Authority (FINRA) has proposed changes to its arbitrator-selection rules for cases where the initial selection process fails to produce enough available panelists. Instead of requiring parties to accept randomly selected substitutes, the proposal would allow both sides to choose arbitrators from an entirely new list, giving them greater input over panel composition. FINRA said the existing “extended list appointment” process has been unpopular because parties have limited ability to challenge replacement arbitrators. The proposal would also formalize a $300 honorarium for every four hours of work by substitute arbitrators reviewing case records and hearing materials.

Will Trout, a consultant with Datos Insights, offered his views of Edward Jones' launch of a mostly automated investment platform.

Paul Atkins, chairman of the US Securities and Exchange Commission.

A former Edward D. Jones & Co. broker and the St. Louis, Missouri-based brokerage agreed to dismiss a reverse discrimination class action suit, according to court filings.

U.S. Securities and Exchange Commission Chair Paul Atkins has directed agency staff to work with the Financial Industry Regulatory Authority on developing an exam that would allow retail investors to qualify as accredited investors based on financial knowledge and sophistication. The proposal could expand access to private-market securities beyond current income and net-worth requirements, which begin at $200,000 in annual income or $1 million in net worth excluding a primary residence. Industry groups support adding professional experience and an investor test to the eligibility criteria. Investor advocates, however, warn that broader access could expose more people to risky private investments.

Tacos: They're a quick meal and the subject of speedily settled federal litigation in the Alamo City. A federal judge has ordered the defendant in Taco Taco Caf� Inc. v. Fouad Hijazi, et al. to stop using the name Taco Taco for their restaurants within 30 days of the March 19 judgment, which came less than two months after Taco Taco Café filed its complaint. Ted Lee represents the plaintiff.

Morgan Stanley discharged a father-son team managing $631 million in assets in Hot Springs, Arkansas, over allegations surrounding potentially improper payments to a family member, according to their BrokerCheck records.

A federal magistrate last week shot down Morgan Stanley’s bid to avoid providing diversity-related records in a Black recruiter’s discrimination suit and warned that further inflammatory comments about the recruiter’s lawyers could lead to sanctions.

For a brief period, the Financial Industry Regulatory Authority made its enforcement and arbitration records substantially easier for outsiders to analyze.