futures commission merchants

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When Can Futures Commission Merchants and Broker-Dealers Be Deemed Banks?

By Douglas E. Arend, Jeffry M. Henderson & Robert B. Christie on April 10, 2019

Posted in banking, Banks, Brokers, Client Alert, Financial Services Litigation, GT Alert, investment advisor, Litigation

On March 21, 2019, in Whitaker v. Wedbush Securities, an Illinois appellate court for the first time addressed the liability of a futures commission merchant (FCM) or broker-dealer (BD) under Section 4A-105 of the Uniform Commercial Code (UCC).

By way of background, a customer of an FCM dually registered as a BD ostensibly requested…

FinCEN Finalizes Customer Due Diligence Rule

By Greenberg Traurig on May 26, 2016

Posted in Client Alert, Due Diligence, Financial Crimes Enforcement Network, Securities

May 6, 2016, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN) finalized regulations that will require banks, securities broker dealers, mutual funds, futures commission merchants, and introducing brokers in commodities (collectively, Covered Institutions) to identify and perform due diligence on the ultimate beneficial owners and control persons of any legal…