2009 Mid-Year in Review: SEC and SRO Selected Enforcement Cases and Developments Regarding Broker-Dealers

This outline highlights selected U.S. Securities and Exchange Commission (the “SEC” or the “Commission”), Financial Industry Regulatory Authority (“FINRA”), and NYSE Regulation enforcement actions and developments regarding broker-dealers during the first half of 2009.

The market disruptions and alleged large-scale Ponzi schemes that occurred in the second half of 2008 led both government officials and commentators alike to call for increased securities enforcement activity. This year, both the SEC and FINRA have new leadership and a mandate to restore investor confidence and aggressively pursue companies and individuals who engage in wrongdoing. Based on the increased volume of SEC enforcement actions and the high penalty and fine amounts in SEC and FINRA settlements thus far in 2009, regulators appear to be taking their mandate seriously, and there is every reason to expect that the uptick in enforcement levels will continue, at least throughout the remainder of 2009.

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