Governmental, Regulatory and Self-Regulatory Proceedings

Under the Securities Exchange Act of 1934 (the Exchange Act), the broker-dealer industry is regulated by the Securities Exchange Commission and a self-regulatory organization (SRO). The Financial Industry Regulatory Authority (FINRA) has emerged as the primary self-regulatory body for broker-dealers in the United States, entrusted with the responsibility of protecting investors and strengthening investor confidence in the securities industry. When a brokerage firm or a broker abuses investors' trust, breaches industry rules, or cause financial losses, the self-regulatory body FINRA may step in to initiate disciplinary proceedings. It also provides a lower cost and faster forum FINRA Dispute Resolution to arbitrate disputes in the industry, similar to a court. Malecki Law’s New York regulatory lawyers are here to help you navigate these parallel regulators.

In certain circumstances, FINRA will refer fraud and insider trading cases to the SEC and other agencies for litigation and prosecution. FINRA receives complaints directly from investors and industry members, but also refers fraud and insider trading cases to the SEC and other regulatory bodies for litigation and/or prosecution. Usually, it is the cases that pass on to the SEC that garner media headlines, but the financial industry’s regulatory and self-regulatory proceedings are crucial and commonplace in keeping the industry safe for investors. In this space, Malecki Law’s New York regulatory lawyers have decades of experience.

When audits and investigations uncover issues of significance (or perceived departure from industry rules), governmental regulation and proceedings commence. The experienced regulatory attorneys in New York at Malecki Law have developed a distinguished history as counsel in securities enforcement actions brought forth by the SEC, FINRA (formerly NASD and NYSE), federal and state criminal authorities, state securities regulators, and other self-regulatory organizations and exchanges. One of the most critical decisions, whether to litigate or settle, cannot be lightly decided and requires skilled, experienced advice.

The regulatory law firm in New York, Malecki Law, has an excellent rapport with civil and criminal, regulatory, and self-regulatory bodies developed over 20 years. While Malecki Law thrives in the litigated setting such as trials or hearings, zealous representation often involves on-the-record interviews, sit-downs with regulators, and a favorably negotiated settlement or cooperation agreement.

Litigating breaches of regulatory rules and laws can be costly, time-consuming, and a risk to one’s employment. Like arbitration, regulatory hearings are conducted much like internal trials, before industry professionals and administrative law judges. Such violations not only involve brokers' misconduct but could also result in investigations by a criminal authority.

Ms. Malecki represents individuals from the initial stages of investigations through trial and on appeal in a wide range of complex civil and criminal matters, including before the Securities and Exchange Commission ("SEC") in enforcement actions, regulatory proceedings, securities and financial litigation, commercial litigation, and international disputes. She has counseled clients in civil and criminal investigations, congressional inquiries and testimony at hearings, and in internal audits and investigations.

Ms. Malecki defends in enforcement actions and investigations initiated by various federal and state agencies and departments including the SEC, Department of Justice, United States Attorneys, state attorney generals, and the Financial Industry Regulatory Authority ("FINRA"). These matters involve allegations related to securities, banking, and accounting fraud; insider trading; antitrust violations; whistleblowers; adequacy of disclosures; broker-dealer and investment adviser compliance; fiduciary duties; mortgages and lending; complex financial products; securitization; deceptive trade practices; and other similar areas.

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