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FINRA Taping Rule Imposes Duties on Brokerage Firms Employing Brokers From Disciplined Firms

FINRA Taping Rule Imposes Duties on Brokerage Firms Employing Brokers From Disciplined Firms

FINRA Taping Rule Imposes Duties on Brokerage Firms Employing Brokers From Disciplined Firms 150 150 Rex Securities Law

By Robert H. Rex, Esq.


In 1998 the Securities & Exchange Commission approved NASD Rule 3010 requiring broker dealers to establish special supervisory procedures, including the tape recording of conversations with customers, if they hire more than a specified percentage of brokers from certain firms that have been expelled or that have had their broker/dealer registrations revoked for sales practice rules violations. 

The specifics are set forth in Notice to Members 98-52.

As of May 1, 2014, those disciplined firms include: 

Basis Financial LLC 

Biremis Corp.

Cambridge Legacy Securities, LLC

Genesis Securities

Hedge Fund Capital Partners, LLC

Hudson Valley Capital Management

iTRADEdirect.com Corp.
Maxxtrade, Inc.

Melhado, Flynn & Associates, Inc.

MMR, Inc.

Pinnacle Partners Financial Corporation

Prestige Financial Center, Inc. 

Take Charge Financial

Thornes & Associates, Inc. Investment Securities

Viewpoint Securities, LLC

W R Rice Financial Services, Inc.

Westor Capital Group, Inc.


If you have questions about the way your brokerage account has been handled or questions regarding recovery of investment losses from stockbrokers or brokerage firms, call to speak with an experienced securities lawyer. 

Nationwide representation.


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