THE EXPERT'S EXAMINER

Apr-Jun 2019 - No. 2019-02

SPECIAL EDITORIAL:

REPORT ON THE RECENT SER CONFERENCE: A NOTE OF APPRECIATION, by Rick Ryder*

(*Rick Ryder is the founder and Editor-in-Chief of the Securities Arbitration Commentator .)

I just attended my last SER Conference as a member of the Roundtable Board. I doubt I'll run for the Board again, but, after more than a dozen years of Board service, I have a respect for and dedication to this organization that combines with an affection for the very best of its membership. READ MORE

RECENT NEWS FROM THE ARBITRATION FRONT

Contributor: Richard P. Ryder ( [email protected] )

(ed: This column follows recent items of interest to securities experts and relating to arbitration practice. These items are drawn from the past quarter's editions of the Securities Arbitration Alert , a publication of the Securities Arbitration Commentator and appear here with the permission of SAC's publisher.)

SEC APPROVES REG BEST INTEREST AND RELATED PROPOSALS. The SEC voted 3-1 to approve Regulation Best Interest (Reg BI) and three related proposed regulations at an open meeting held June 5. Commissioner Jackson dissented.     READ MORE

WATERS PROPOSES AMENDMENT TO KILL REG BI. House Financial Services Committee Chair Maxine Waters (D-CA) on June 25 submitted an amendment to a spending bill that would that kill the SEC’s Reg Best Interest and related Regs. Specifically, the proposed amendment ...  READ MORE

FINRA STATS, 5/19: NEW CASE FILINGS CONTINUE FLAT, WHILE SIMPLIFIED-CLAIM WINS SURGE! With the first five months of the year passed, 2019 is shaping up as a slow year -- something we comment on below -- but FINRA-DR's May statistical report contains some surprises (Manipulations on the rise!?).    READ MORE

FINRA BOARD MEETS -- TABLES ARBITRATION-RELATED RULE PROPOSALS. FINRA’s Board of Governors met on May 6-7 to consider an array of financial, regulatory and enforcement reports and issues. Prior to this regular meeting of the Board, the published meeting agenda indicated that at least one of the items under consideration concerned FINRA’s arbitration arm.   READ MORE

LOTS OF COMMENTS, MOSTLY SPLIT ALONG PARTY LINES, ON FINRA RULEMAKING PROPOSAL TO PROTECT AGAINST AT-RISK FIRMS AND UNPAID ARBITRATION AWARDS. SOME SURPRISES, THOUGH. The comment period closed July 1st on FINRA’s Regulatory Notice seeking comments on rule changes aimed at better protecting investors from unpaid awards involving firms with significant regulatory histories. The thirty letters were mostly split along party lines, but some interesting alliances have emerged.   READ MORE

SENATE JUDICIARY COMMITTEE HOLDS A HEARING ON “ARBITRATION IN AMERICA.” LOOKS LIKE SOME BIPARTISAN FAA CHANGES ARE COMING. The full Senate Judiciary Committee held an April 2nd hearing titled “Arbitration in America.” Based on the comments and questions from Committee members, it seems there will be bipartisan support for changes. READ MORE

HOUSE PASSES BILL THAT WOULD REVIVE DEFUNCT CFPB ARBITRATION RULE. The House on May 22nd passed by a strict party-line 231-191 vote the Consumers First Act – H.R.1500. The Bill essentially seeks to undo many steps taken by former Acting CFPB Director Mick Mulvaney... READ MORE

EXPERT OPINIONS: WHAT ARE THE COURTS THINKING?

Contributor: Richard P. Ryder ( [email protected] )

(ed: By reading how courts value, view and utilize testifying experts, one can better serve the fact-finder, more effectively help the client, and more likely avoid a bad experience . For selected court decisions, we draw again from a SAC publication, Securities Online Litigation Alert (SOLA), and other resources.) 

SEC v. Lek Securities Corp., No. 1:17-cv-01789 (S.D. N.Y., 4/8/19). This case has featured a trove of decisions from a respected and securities-knowledgeable jurist on the qualifying of experts and the nature of the testimony they can reliably provide to the factfinder.   READ MORE

SEC v. Lek Securities Corp., No. 1:17-cv-01789 (S.D. N.Y., 5/8/19). As this case approaches trial, it continues to provide instructive opinions on the qualifications and reliability of proffered experts; here, the court reviews a prior ruling (see TEE 2019-01).    READ MORE

USA v. Coscia, No. 14 CR 551 (N.D. Ill., 4/6/16). While this one comes from the archives, it bears inclusion as giving great judicial guidance on an issue so often encountered by testifying experts: how to assist the factfinder without usurping her prerogatives. READ MORE

SER ACTIVITIES - WHAT'S CIRCLING AT THE ROUNDTABLE?

Contributor: David Keogh ( [email protected] )

(ed: Meeting once a year to exchange views and learn more about professional interests lies at this organization’s roots. The Committees of SER work throughout the year to manage our finances, to increase our membership, to plan the organization’s future, and to prepare for the success and the funding of our next Conference. At least two members of the Board sit on each Committee, but non-Board members — past Board members and those who might one day want to join the Board — are a major strength of the SER Committee system. This column will familiarize members with the Board’s Committees and their ongoing activities.)

The committees of The Securities Expert Roundtable are hard at work to continually enhance the value of membership. We are pleased to report the following... READ MORE

HEARD THROUGH THE REGULATORY GRAPEVINE

Contributor: Carrie Wisniewski ( [email protected] )

( ed: Keeping abreast of rulemaking and other regulatory initiatives can be a full-time job. Bringing it all together (or most of it, anyway) into a single column designed for quick scanning with drill-down linkage for further details — along with a bit of perspective and commentary -- has great value, in our view, for the busy expert. We invite SER members to point us to rulemaking, legislation, regulatory notices and policy speeches that are creating "buzz" in the securities community. )

At FINRA's 2019 Annual Meeting in Washington, DC, senior FINRA staff indicated that the organization hopes to close all district office locations over the next several years as leases expire in order ... READ MORE

MEMBER ACHIEVEMENTS - BRINGING CREDIT TO THE PROFESSION

Contributor: Elizabeth Falk ( [email protected] )

(ed: In their daily lives and in their professional pursuits, SER members are engaged in a host of activities that reflect well on them and that all SER members should know about. Whether it’s writing an article, hosting an event, joining a professional committee, or just pursuing a smart practice, we report on those efforts here each quarter. Look to the “Newsroom” section of the SER Website for more frequent, timely reports on the activities of our members and let us know when you learn of an SER "member achievement" we should be recognizing.)

SER MEMBER RECOGNIZED AS AN NACD BOARD LEADERSHIP FELLOW SER Director and Member Carrie Wisniewski has been named as an National Association of Corporate Directors (NACD) NACD Board Leadership Fellow. . . READ MORE

NEW ADDITIONS TO SER'S MEMBER LIBRARY ON THE SHORT GAMMA TRADING AND GAMMA SCALPING STRATEGIES SER Member Gontran de Quillacq has authored two recent articles on the subject of gamma trading strategies, which are available through SER's Member Library. The two articles are serial in nature.. .  READ MORE

YOUR EXPERT WITNESS MAY NOT BE AN EXPERT - AT BEING AN EXPERT WITNESS Member and former SER President Richard Leisner authored a recent article titled "Your Expert Witness May Not Be an Expert – At Being an Expert Witness"emphasizing the dangers of an expert writing a report that does not comply with the specific requirements of federal rules of procedure .  READ MORE

ANNUAL SNAPSHOT OF U.S. CAPITAL MARKETS IN ONE-PAGE CHART -- JUST IN: 2018 RESULTS SER Member and bond expert Gerry Guild uses statistics extensively in his work and has prepared a U.S. Capital Markets Chart that captures at a glance the gross numbers on the national and corporate DEBT...   READ MORE

COMMENT LETTERS, SPEECHES & TESTIMONY

Contributor: Jerry DeNigris ( [email protected] )

(ed: In this column, we look back to the prior quarter with a view to spotlighting regulatory or litigation developments that influential leaders and major institutions in the securities world are talking, writing and worrying about. Selected writings or speeches that we find online and that deal with the primary issues of the day will be the focus of this column. )

SEC CHAIR RESPONDS TO SEVEN CRITICISMS OF REGULATION BEST INTEREST A recent speech by SEC Chair Jay Clayton endorses the new regulation and presents his point-by-point rebuttal of the criticism that Reg BI has received since agency adoption in his speech titled: Two Strong Standards that Protect and Provide Choice for Main Street Investors. READ MORE

STATISTICS, EVENTS & RESOURCES

Contributor: Patti Koetting ( [email protected] )

(ed: This column seeks to apprise members of events, products and services that can be useful to them in their professional activities, including and especially the SER Website. Unless specifically stated, SER does not endorse or sponsor any of the products and services mentioned herein.)

Final Note : The Contributors are members of the SER Public Relations Committee. They have designed this newsletter for the membership and worked to gather material for this inaugural issue. Members can help by sending Contributors information and suggestions for content in future issues. Members should also visit SER's "Newsroom" section of the Website periodically, as many of the items that appear here will be first posted in the Newsroom.

Copyright 2019 Securities Experts Roundtable - publication appears on a quarterly basis and is available as a membership benefit to experts of the Securities Experts Roundtable. Comments - suggestions welcome. Email [email protected] with comments.

Mission Statement : SER provides continuing professional education and promotes ethics and integrity among its members while remaining dispute neutral as an organization.

Disclaimer : This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. The publisher is not engaged in rendering legal, accounting or other professional service or advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.