Journal of Investment Compliance: Volume 3 Issue 1

Changing times: key issues for securities regulation and compliance

Alan E. Sorcher, George R. Kramer

In the midst of one of the most challenging periods in decades, the securities industry is relearning the meaning of the ancient Chinese curse – “may you live in interesting…

The effect of the Arthur Andersen verdict on inside counsel

Loren Schechter, William O. Purcell, Cecilia W. Kaiser

The Arthur Andersen case is a nightmare for inside counsel – an act of inside counsel, which probably was a well‐intentioned attempt to protect the client’s interests, resulted in…

Wall Street’s e‐mail nightmare: What in‐house counsel at securities firms need to know to get ahead of the curve on e‐mail retention

Patrick Burke, Daniel L. Junk

In light of the current investigations related to possible conflicts of interest involving Wall Street stock analysts, no general counsel at a securities firm needs to be reminded…

The Sarbanes‐Oxley Act of 2002

Guy P. Lander

The President has signed legislation, the “Sarbanes‐Oxley Act of 2002”, (the “Act”) that amends the U.S. securities and other laws in significant ways. The law changes corporate…

Deconstructing Caiola in light of the CFMA: can a security still be extracted from a swap?

Brandon Becker, Mark S. Shelton, Cathy H. Ahn

On June 27, 2002, the Second Circuit Court of Appeals ruled in Caiola v. Citibank, N.A. (Caiola II) that cash‐settled options are “securities” under Section 3(a)(10) of the…

The regulation of wrap fee programs – Part I

Terrance J. O’Malley, Kenneth E. Neikirk

Wrap fee programs are an increasingly popular product offered by broker‐dealers and investment managers to their clients. Wrap fee programs present unique issues under both the…

On‐line brokers may be better positioned than regular brokers in regard to money laundering laws

Michael J. Hogan, Howard Schneider, Elisabeth J. Schadé

To comply with the USA PATRIOT Act (the “Act”), Broker‐Dealers (“BDs”), among others, must establish an anti‐money laundering compliance program (“Program”) by April 24, 2002…

Broker liability: the three faces of Zandford

Christian J. Mixter

The Supreme Court’s June 3 decision in SEC v. Zandford, 122 S. Ct. 1899, seems at first blush to be bad news for brokers – an unblemished affirmation of the SEC’s expansive view…