Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

These Two State Regulators Serve as Financial Markets’ Primary First Responders

Posted on April 26th, 2023 at 1:35 PM
These Two State Regulators Serve as Financial Markets’ Primary First Responders

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï 

Two state securities regulators frequently stand out as “First Responders.” 

While the collapse of Silicon Valley Bank and First Republic’s tumble has sent shockwaves across financial markets, a Massachusetts-based securities regulator was among the first to initiate an investigation of First Republic. 

Massachusetts Secretary of State William Galvin launched an investigation into potential inside trading at First Republic, which has branch offices in Massachusetts. Galvin cited his concerns regarding allegedly risky lending and business practices employed by First Republic. Also, Galvin noted that First Republic’s receipt of $30 billion from several large banks does not serve to ease concerns. Galvin’s First Republic investigation is an example of how state regulators can serve as first responders to potential investor harm before the SEC or FINRA become involved.

Another prominent state regulator is the director of the Alabama Securities Commission, Joseph Borg, who previously served as president of the North American Securities Administrators Association (NASAA). According to Borg in a recent interview, “ÍøÆØ³Ô¹Ï’re usually the first ones on the scene when it comes to retail investors. ÍøÆØ³Ô¹Ï see [malfeasance] from the ground level. That doesn’t mean we understand all the nuances. But we see there are issues and we can bring them to the forefront and where needed combine the resources of the 53 U.S. jurisdictions.” State securities regulators, such as Borg, were instrumental in designing a plan to strengthen Robinhood’s customer support after the company agreed to a $10.2 million settlement with federal regulators in 2022. “ÍøÆØ³Ô¹Ï wanted to make sure they’re progressing on their improvements rather than issuing an order first”, Borg said. While Borg is expected to retire next month, Amanda Senn is set to serve as Borg’s successor.

 

ÍøÆØ³Ô¹Ï LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

  

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

1778171646 Law
May 7, 2026
FINRA Bars Former Raymond James Broker for Refusing Testimony in Unauthorized Trading Probe

A former registered representative with Raymond James has been barred from the securities industry after refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into alleged unauthorized trading activity.

1778084309 Law
May 6, 2026
FINRA Outlines Key Rulemaking Priorities and Recent Developments in Quarterly Agenda

The Financial Industry Regulatory Authority (FINRA) recently released its Quarterly Regulatory Policy Agenda, offering a detailed view of its rulemaking priorities, pending proposals, and recently approved regulatory changes.

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.