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Category Archives: FINRA

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Breach of Fiduciary Duty Tops FINRA Disputes Again

Posted in Compliance, Fiduciary Liability, FINRA, Investment Management
According to dispute resolution statistics, published by the Financial Industry Regulatory Authority (“FINRA”), breach of fiduciary duty continues to lead the list of “controversy types in customer arbitrations.” Negligence, failure to supervise, misrepresentation, breach of contract, suitability and omission of facts follow. That breach of fiduciary duty allegations feature so prominently in FINRA customer disputes… Continue Reading

FINRA and Financial Fraud Sanctions

Posted in FINRA, Fraud
In its just-released “Sanctions Guidelines,” the Financial Industry Regulatory Authority (“FINRA”) makes no secret of its goal to design disciplinary actions “that are meaningful and significant enough to prevent and discourage future misconduct.” Repeat offenders are unlikely to get away with a mere slap of the wrist, particularly if their actions demonstrate “a reckless disregard… Continue Reading

Investment Risk Management, Kanye West and Paul McCartney

Posted in Broker Dealers, Compliance, Disclosure and Transparency, FINRA, Investment Management, Liquidity, Regulation, Risk Management, Valuation
Thank heavens for the absurdities of life. A few chuckles here and there make the difference between blah and pizzazz in life. A recent example is the Twitterverse response to a recent artistic collaboration between Kanye West and Paul McCartney. Supposedly some of the members of the younger generation are unaware of this Beatle’s musical eminence. See “Genius… Continue Reading

Muni Bond Public Pension Disclosures – Still High Priority For Regulators

Posted in Compliance, Derivatives, Disclosure and Transparency, FINRA, Litigation, Municipal Bonds, Mutual Funds, Pension, Regulation
According to a November 8, 2013 press release, the U.S. Securities and Exchange Commission (“SEC”) has appointed LeeAnn Ghazil Gaunt as head of the Municipal Securities and Public Pensions Unit of its Enforcement Division. She is credited for overseeing pay-to-play actions and investigations that range from inappropriate hedge accounting disclosures and market timing. No doubt… Continue Reading

Fiduciary Regulations, Financial Literacy and the Cost of Compliance

Posted in Broker Dealers, Compliance, Fees, Fiduciary Liability, FINRA, Investment Management, Regulation
As financial industry participants know, once the regulatory machine is in motion, it is difficult to go back to the beginning. At a certain stage, those organizations and individuals that are expected to be on the receiving end of new rules spend money and time to prepare. According to “Fiduciary rules will cost millions in… Continue Reading

Asset Management Industry Trends For 2013

Posted in Broker Dealers, Compliance, Derivatives, Fiduciary Liability, Financial Expert, FINRA, Governance, Investment Management, Regulation
Life in asset management land will never be the same again. According to “The Future of Asset Management” by Maha Khan Phillips (CFA Institute Magazine, Jan/Feb 2013), operating margins are under pressure, asset growth is anemic, investors are moving away from equity around the world and competitive pressures are not going away. This is bad news… Continue Reading

Breach of Fiduciary Duty as Top Complaint in FINRA Arbitration Matters

Posted in Broker Dealers, Fiduciary Liability, FINRA
According to ADVISORONE journalist Melanie Waddell, the debate about fiduciary standard-setting continues as various experts cite urgency with respect to investment complexity and the advice they are getting from financial professionals. In “Breach of Fiduciary Duty No. 1 Complaint in FINRA Arbitration Cases” (September 25, 2012), Waddell writes that many investors do not understand the… Continue Reading