SEC Proposes a “Best Interest” Standard for Broker-Dealers
Daniel Nathan uses his deep enforcement and regulatory experience to represent U.S. and international financial institutions and individuals before financial regulators.
With a combined 25 years as a senior enforcement official with the SEC, CFTC and FINRA, three of the country’s leading regulatory and enforcement authorities, Dan is a particularly effective advocate for those facing investigations and/or enforcement action by those regulators.
Daniel’s intimate knowledge of broker-dealer regulation provides clients facing SEC or FINRA examinations and enforcement investigations with experienced counsel related to broker-dealer supervisory procedures, sales practices, anti-money laundering, ETF regulation, product disclosure and supervision, and securities and broker registration. His extensive experience includes the JOBS Act and Dodd-Frank Act, and he has led extensive efforts to help foreign banks establish programs for complying with the Volcker Rule. He also represents individuals and entities facing investigations by the CFTC or derivatives exchanges.
Previously, Daniel served as the Vice President and Regional Enforcement Director of the Financial Industry Regulatory Authority (FINRA), where he oversaw 70 lawyers across 15 offices responsible for bringing up to 900 disciplinary actions annually against broker-dealer firms, registered representatives and associated persons. This included many of FINRA’s most significant nationwide enforcement actions, including actions and sweeps involving mutual fund breakpoints, structured products sales practices and supervision, and private placement due diligence and disclosure.
In his 12 years at the SEC, Daniel served as Assistant Director in the Division of Enforcement, where he supervised federal securities investigations of insider trading (including the investigation that resulted in the seminal case US v. O’Hagan), market manipulation, financial fraud and accounting misconduct. In nine years with the CFTC, he served as Deputy Director of Enforcement, with responsibility for oversight of the agency’s Enforcement Division. In that role, he supervised significant actions regarding market manipulation, trade practices, commodity trading advisor practices and foreign exchange dealer practices.
An oft-quoted authority on complex financial, legal and business issues, Daniel is frequently sought after to speak and write on the important issues confronting financial institutions, including broker-dealer sales practices and compliance, complex products, ETFs, the Volcker Rule, derivatives, cryptocurrency, cybersecurity, and anti-money laundering. He is Co-chair of the ABA SEC Enforcement Subcommittee and a member of the Editorial Advisory Board of the Journal of Investment Compliance.
ENFORCEMENT AND LITIGATION
Commodities Exchange Investigation. Represented an energy marketing firm in a Chicago Mercantile Exchange investigation of possible market manipulation through physical and swaps trading. The CME closed the investigation without action.
Derivatives Exchange Investigation. Represents an energy trader in an investigation of possible disruptive trading practices in natural gas trading.
SEC Investigation. Represents an ETF promoter in an SEC investigation regarding various trading and ‘40 Act issues.
SEC Investigation. Represents a former Chief Financial Officer of a public company in an SEC investigation and related class actions regarding financial reporting.
SEC Investigation. Represents a Regional Center in an SEC investigation of EB-5 offerings.
SEC Investigation. Represented a Chief Credit Officer of a financial institution in an investigation regarding accounting for impaired real estate loans.
SEC Investigation. Represented an individual in an investigation regarding insider trading and improper tipping. The SEC did not bring action against Dan’s client.
SEC Investigation. Represented an individual in negotiating the settlement of a financial reporting case, with a focus on clawback issues under Sarbanes-Oxley.
LIBOR Investigation. Represented a former trader in the Department of Justice’s LIBOR investigation.
ISDAfix Investigation. Represented a broker-dealer supervisor in a FINRA investigation regarding supervision of the ISDAfix rate-settting process at a large bank.
ISDAfix Investigation. Represented several former and current traders in the CFTC’s investigation regarding the ISDAfix benchmark rate.
FINRA Registration. Represented an individual in successfully removing a NYSE bar from association with a broker-dealer.
FINRA Arbitration. Represents a broker-dealer in an arbitration related to excessive mark-ups on fixed income securities transactions.
FINRA Arbitration. Defended a foreign bank in a FINRA arbitration brought by a trading client who alleged failure to deliver on a substantial fixed income transaction.
FINRA Enforcement – ETF Trading issues. Represents a broker-dealer in a FINRA investigation regarding ETF creation and redemption processes.
FINRA Enforcement – Research Analyst Issues. Represented several broker-dealers in FINRA investigations related to research analyst issues raised by the Dodd-Frank Act and the JOBS Act.
FINRA Enforcement – Form U-4 Disclosure. Represented individual brokers in several FINRA investigations regarding the failure to disclose liens and bankruptcies on the broker’s Form U-4.
FINRA Enforcement – Private Equity. Represented a private equity fund accused by FINRA of failing to provide adequate disclosure to investors, and negotiated a substantially reduced sanction.
FINRA Enforcement – AML Action. Negotiated a substantially reduced sanction on behalf of a broker-dealer in a case alleging several AML violations as well as other violations.
Expert Witness – Broker-Dealer Compliance. Served as an expert witness regarding the scope and execution of the duties of a broker-dealer chief compliance officer.
Expert Witness – Broker-Dealer Registration. Served as an expert witness in a private action concerning registration requirements for individuals marketing ETFs on behalf of a broker-dealer.
Volcker Rule. Advised five different domestic and foreign banking entities on the establishment and implementation of Volcker Rule Compliance Programs.
EB-5 Visa Program. Advised real estate developers and issuers regarding requirements of the EB-5 visa program administered by the United States Citizenship and Immigration Services.
Securities Political Intelligence and Research procedures. Drafting compliance procedures for a firm engaged in providing political intelligence.