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Articles 1 - 4 of 4
Full-Text Articles in Law
It’S Critical: Legal Participatory Action Research, Emily Houh, Kristin (Brandser) Kalsem
It’S Critical: Legal Participatory Action Research, Emily Houh, Kristin (Brandser) Kalsem
Faculty Articles and Other Publications
The ongoing community-based research project that we describe in this article will contribute, we hope, to an understanding of the fringe economy by offering insights into what remains “unexplained” in the current existing literature, namely the gender and race disparities relating to who uses “alternative financial service” (AFS) products. This article likewise contributes to a growing body of literature within Critical Race Theory and Critical Race Feminism that deals with economic inequalities and how they are inextricably and structurally linked to race and gender subordination. By explicitly incorporating “participatory action research” (PAR) values and methods into our work as critical …
Punishing Bad Brokers: Self-Regulation And Finra Sanctions, Barbara Black
Punishing Bad Brokers: Self-Regulation And Finra Sanctions, Barbara Black
Faculty Articles and Other Publications
Regulation of the broker-dealer industry by a self-regulatory organization (SRO) is an integral part of the federal regulatory scheme under the Securities Exchange Act of 1934 (the Exchange Act). As a result, the Financial Industry Regulatory Authority (FINRA), the sole SRO for U.S. broker-dealers, plays an important role in protecting investors, especially retail investors, and bolstering investor confidence in the securities industry and capital markets. In 2012 FINRA brought 1,541 disciplinary actions against registered individuals and firms, levied fines totaling more than $68 million and ordered restitution of $34 million. It expelled 30 firms, barred 294 individuals and suspended another …
Curbing Broker-Dealers' Abusive Sales Practices: Does Professor Jensen's Integrity Framework Offer A Better Approach?, Barbara Black
Curbing Broker-Dealers' Abusive Sales Practices: Does Professor Jensen's Integrity Framework Offer A Better Approach?, Barbara Black
Faculty Articles and Other Publications
Retail investors, particularly senior citizens, need competent and careful investment advice more than ever before. Many must rely on the services provided by investment advice providers, including broker-dealers. Regulators have sounded the alarm about sales of risky, complex products to retail customers in search of better returns, especially senior citizens and retirees. Both the SEC and FINRA have identified abusive broker-dealer sales practices as priorities in their examinations of broker-dealers and have brought numerous enforcement actions against broker-dealers for sales practices that harm retail investors. These enforcement actions frequently allege both failures of the firms’ due diligence processes to assure …
Behavioral Economics And Investor Protection: Reasonable Investors, Efficient Markets, Barbara Black
Behavioral Economics And Investor Protection: Reasonable Investors, Efficient Markets, Barbara Black
Faculty Articles and Other Publications
The judicial view of a “reasonable investor” plays an important role in federal securities regulation, and courts express great confidence in the reasonable investor’s cognitive abilities. Behavioral economists, by contrast, do not observe real people investing in today’s markets behaving as the reasonable investors that federal securities law expects them to be. Similarly, the efficient market hypothesis (EMH) has exerted a powerful influence in securities regulation, although empirical evidence calls into question some of the basic assumptions underlying EMH. Unfortunately, to date, courts have only acknowledged the discrepancy between legal theory and behavioral economics in one situation, class certification of …