SEC Dismisses "Failure to Supervise" Enforcement Proceeding Against Broker-Dealer General Counsel

In a significant case for legal and compliance professionals at securities firms, the Securities and Exchange Commission (the “Commission”) yesterday dismissed enforcement proceedings against Theodore W. Urban, former General Counsel of Ferris, Baker Watts, Inc.  The dismissal of the proceedings, by an evenly divided Commission, rendered “of no effect” a prior administrative law judge decision that had raised widespread industry concerns because of its broad construction of the circumstances in which a legal or compliance professional could be deemed a “supervisor.”