May 2023 - Broker-Dealer Regulation & Litigation Insights

Hermione Granger (yes, from Harry Potter) is famously attributed with the following quote: “I’m going to bed before either of you come up with another clever idea to get us killed. Or worse, expelled.” Unfortunately, cleverness failed to save Salomon Whitney Financial, LLC (SW Financial) recently when FINRA announced that it had followed through with its threats of increased enforcement efforts and expelled the firm and suspended its co-owner and CEO, Thomas Diamante.

FINRA announced on Friday, May 12, that it was expelling SW Financial, in part, because it had violated Regulation Best Interest (Reg BI). This is the first time FINRA has expelled a firm since Reg BI took effect in June 2020. The move by FINRA, however, tracks with its increased rhetoric that it will be cracking down on brokerage firms for Reg BI violations. As we have previously reported, the Division of Examinations of the Securities and Exchange Commission (the Division) has been busy implementing broker-dealer examinations to assess compliance with the regulation.

Continue reading ““Or Worse, Expelled.””

Key Takeaways:

Starting with tax years beginning after December 31, 2022, a small employer can take advantage of significant tax credits under SECURE Act 2.0 (the “Act”) for establishing a new retirement plan. Under the Act, the tax credits are available for plan administrative and contribution costs.

The full tax credit is available to employers with 50 or fewer employees and there is a partial credit available to employers with 51 to 100 employees. There are several additional conditions for eligibility as well.

Broker-dealers and registered representatives (“advisors”) will want to know about these credits in order to educate small businesses and assist them in establishing plans to take advantage of the credits.

The Credit for Plan Start-Up Costs

Eligible Small Employers

Advisors should educate small employers about the available tax credit for the administrative costs of setting up and operating an eligible employer plan for the first three years in which the plan is maintained. In order to qualify for the credit, the following conditions must be met:

Continue reading “Tax Credits for Starting Up Small Employer Plans: What You Need to Know”

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Key Takeaways:

The Credit for Plan Start-Up Costs

Eligible Small Employers