What Is the Process for Responding to a FINRA or SEC Investigation? - Transcript

Receiving a FINRA 8210 request or an SEC subpoena marks the beginning of a serious regulatory investigation. How you respond can significantly impact the outcome, and navigating this process requires careful planning and experienced counsel. At Malecki Law, we understand the complexities of regulatory inquiries and the importance of protecting your rights at every step.

The investigation process often begins with a FINRA 8210 request or an SEC subpoena. These are formal demands for information, documents, and testimony. Compliance with these requests is mandatory, and failure to respond adequately can lead to severe consequences, including penalties, sanctions, or further scrutiny.

Responding to a regulatory investigation is not a task to approach lightly. The stakes are high, and even seemingly small missteps can lead to unintended consequences. Here are some reasons why engaging experienced securities counsel is critical:

• Understanding the Scope: Regulatory requests are often broad, encompassing vast amounts of information. An experienced attorney can work to narrow the scope of the request, ensuring that only the necessary documents are produced.
• Avoiding Additional Exposure: Providing one piece of information can inadvertently reveal another potential violation. Counsel can guide you on how to answer questions or present documents in a way that protects your interests.
• Navigating Legal Complexities: Securities laws intersect with other regulations, such as tax laws enforced by the IRS. If the SEC discovers something that should have been reported to the IRS, they may share that information, compounding your legal risks. Experienced counsel can help identify and mitigate these intersections.
• Effective Communication: A skilled attorney knows how to present information to regulators in a way that aligns with legal standards and minimizes potential issues. This includes drafting responses in precise legal language that laypersons may not be familiar with.

Responding to a FINRA or SEC investigation involves several critical steps:

1. Engaging Legal Counsel: The first and most important step is to retain an experienced securities attorney as soon as possible. This ensures that your rights are protected from the outset.
2. Understanding the Request: Work with your attorney to review the 8210 request or subpoena and understand what is being asked. This includes identifying the scope of the inquiry and any potential risks.
3. Gathering Documents: Collect the required documentation carefully and thoroughly. Your attorney can help ensure that the documents you provide are complete and comply with the request without exposing you to unnecessary risk.
4. Drafting Responses: Written responses to regulatory inquiries must be accurate and carefully worded. Counsel can help craft these responses to present your case in the best possible light.
5. Providing Testimony: If you are called to testify, preparation is key. Your attorney can help you understand the questions you are likely to face and coach you on how to respond effectively.

Attempting to respond to a FINRA or SEC investigation without legal representation can lead to significant risks. Regulators are highly experienced and well-versed in the law, and unrepresented individuals may unintentionally provide incriminating information or fail to address critical issues. In these cases, the principle of “pennywise and pound foolish” often applies—skipping legal counsel to save money can result in far greater financial and legal consequences down the line.

At Malecki Law, we bring decades of experience to representing clients in FINRA and SEC investigations. We understand the nuances of securities law and the strategies regulators employ. Our team is dedicated to providing the guidance and advocacy you need to navigate these proceedings effectively. We work to narrow the scope of document requests and ensure compliance while protecting your interests. Our attorneys will also manage interactions with regulators to ensure accurate and effective communication. If you’ve received a FINRA 8210 request or an SEC subpoena, don’t wait to seek legal counsel. Contact Malecki Law at (212) 943-1233 or reach out online to schedule a consultation. Your future and reputation are too important to leave to chance.

Transcript:

I could not be stringent enough to tell you that in responding to a FINRA 8210 request which is the start of Investigation or an SEC subpoena you must must must get experience counsel why there are so many Securities laws and there’s other laws too there’s the IRS the SEC if you get an SEC subpoena the SEC sees something that should have been reported to the IRS they’re going to report it to the IRS it’s it’s important to try to get a lawyer that can narrow the scope of the documents being produced that can make sure that in answering one question you’re not showing the violation of another issue and there’s just again lawyer speak versus layperson speak a Securities lawyer knows the way to deliver the information in the way that is best going to protect you I truly believe that unrepresented people do not get a fair Shake in these proceedings that I hate to say will be taken advantage of but I I do think that happens so it is really really really important to get counsel don’t be Pennywise and pound foolish this is is not a time to do that.