The Financial Industry Regulatory Authority (FINRA) sanctioned Citigroup Global Markets, J.P. Morgan Securities, LPL Financial, Morgan Stanley Smith Barney and Merrill Lynch for failure to ensure compliance with FINRA Rule 2090 “Know Your Customer” rule, dealing with custodial accounts. The Rule requires member firms and their associated representatives to use reasonable diligence to determine the “essential facts” about each customer and “the authority of each person acting on behalf of such customer.”
FINRA: Suitability and Sales Practice Issues Linger
Financial Industry Regulatory Authority Inc (FINRA) released its “2019 Report on Examination Findings and Observations”, in October 2019. The report reflected key finding/observations identified in FINRA’s recent examinations of broker-dealers and practices FINRA deems to be effective in helping firms improve their compliance and risk management programs. In this article, we summarize aspects of FINRA’s report, relevant to the structured products industry.
Top 5 Tips for Good Financial Health
The Financial Industry Regulatory Authority, FINRA, has released some basic guidance for those of us who struggled to achieve financial wellness. Like the governmental guidelines for maintaining good health and ensuring longevity, the financial rules are as simple as they are hard to follow. Take a look.
Fiduciary Duty vs Suitability Standards
Brokerages Create Illusion of Fiduciary Duty Through Savvy Marketing
Misleading advertising prevalent among brokerage firms lulls investors into a false sense of security over their investments. They stop checking up on their accounts and their broker because they trust him or her; they’ve been told that is, along with access to information and expertise, the main reason to invest with him or her.
Small Investors, Big Losses
Broker Conflicts of Interest Cost Investors Billions Every Year
The Chairman of Obama’s Council of Economic Advisors has ruffled some serious Wall Street feathers with the release of a recent report suggesting that Americans with 401(k) retirement accounts could be losing $8 billion to $17 billion per year due to opportunistic trading by the brokers managing their accounts.