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Broker-Dealer Law and Regulation, Fourth Edition

Broker-Dealer Law & Regulation provides authoritative analysis and practical guidance needed to advise clients on their duties and liabilities under today's far-reaching securities regulations. From duties under the common law, to obligations imposed by the federal securities statutes, this guide covers the full range of the law that governs the relationship between broker-dealers and their customers.

Written by two of America's leading securities authorities, Norman S. Poser and James A. Fanto, Broker-Dealer Law and Regulation offers reliable guidance on the latest federal and state law governing private litigation and arbitration between broker-dealers and their customers, as well as regulation by the SEC, NASD, and NYSE.

The fourth edition of Broker-Dealer Law and Regulation represents a very substantial reorganization and expansion from the prior edition, reflecting the growth of the securities industry and of its regulation, in both size and complexity, during the first years of the twenty-first century. The most important change in the Fourth Edition is the greatly increased emphasis that it gives to regulation and compliance. Among other things, this publication has vastly expanded its coverage of broker-dealer registration and the registration process, recordkeeping and reporting, and examination requirements; exemptions from broker-dealer registration for banks and other financial institutions; privacy and anti-money laundering rules applicable to the firms; and financial and capital regulation. In addition, new chapters have been added on the structure of the securities markets, the regulation of broker-dealers in public offerings, and SEC and SRO enforcement; and new sections have been added on margin regulation, regulation of hypothecation and lending of securities, and voidable contracts

The fourth edition includes:

  • An increased emphasis on regulation and compliance.
  • New chapters covering the structure of the securities markets, the regulation of broker-dealers in public offerings, and SEC and SRO enforcement.
  • Expanded analysis of the technological advances in securities trading and information dissemination.
  • Analysis of the barriers between broker-dealer firms and other financial institutions.
  • Expanded coverage of broker-dealer registration, recordkeeping, reporting, examination requirements, and exemptions.
  • New insight into important securities law decisions of the Supreme Court and other courts, as well as SEC and SRO rules bearing on these matters.
  • Updated and expanded chapters on fiduciary duty, securities fraud, preemption of state law, arbitration, and other related topics.
  • Benefits and Features
    Whether you represent a brokerage firm or a securities dealer, an employee of the firm, or a customer, you'll find insightful analysis of the law, and practical, expert advice on such crucial issues as:

  • The regulatory framework, especially post-Sarbanes-Oxley
  • Broker-Dealer fraud
  • On-line trading
  • Unsuitable recommendations
  • Market manipulation
  • Vicarious liability
  • Defenses in actions against broker-dealers
  • Compensatory and punitive damages and attorney's fees
  • Rules of self-regulatory organizations
  • Securities arbitration
  • Mediation of securities disputes
  • Conflicts of interest
  • Appendices containing both the Federal Arbitration Act and the NASD
  • Code of Arbitration Procedure
  • private rights of action
  • securities arbitration and mediation
  • Regulation
  • Table of Contents

    The fourth edition is structured in four parts:


    Part A: Introduction contains Chapters 1-4

    Chapter 1 The Economics and Structure of the Securities Industry

    Chapter 2 Broker-Dealers Within Financial Conglomerates

    Chapter 3 The Securities Markets

    Chapter 4 An Overview of the Regulatory System


    Part B: Regulation and Compliance contains Chapters 5-15

    Chapter 5 Broker Registration and Exemptions

    Chapter 6 Broker and Associated Person Registration Process

    Chapter 7 Broker Recordkeeping and Reporting

    Chapter 8 Privacy and Anti-Money Laundering

    Chapter 9 The Duty to Supervise

    Chapter 10 Compensation in the Securities Industry

    Chapter 11 Electronic Trading and the Securities Industry

    Chapter 12 Financial Regulation of Broker-Dealers

    Chapter 13 Broker-Dealers in Public Offerings

    Chapter 14 SEC and SRO Enforcement and Disciplinary Proceedings

    Chapter 15 Penny Stock Regulation


    Part C: Private Rights of Action contains Chapters 16-25:

    Chapter 16 Liability of Broker-Dealers Under Common Law

    Chapter 17 Fraud Generally

    Chapter 18 Churning

    Chapter 19 The Suitability Doctrine

    Chapter 20 Unauthorized Trading

    Chapter 21 Market Manipulation

    Chapter 22 Conflicts of Interest and the Securities Industry

    Chapter 23 Damages in Actions Against Broker-Dealers

    Chapter 24 Defenses in Actions Against Broker-Dealers

    Chapter 25 Vicarious Liability


    Part D: Arbitration and Mediation contains Chapters 26-31:

    Chapter 26 Securities Arbitration: The Legal Context

    Chapter 27 The SRO Forums

    Chapter 28 Arbitrability of Securities Disputes

    Chapter 29 Arbitration Awards

    Chapter 30 Judicial Review of Arbitral Awards

    Chapter 31 Mediation