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Author: rafferty

How Proprietary Advisory Platforms Conflict With Fiduciary Standards

13:23 22 September in Articles Written by Jon Henschen by rafferty

September 21, 2021 By Jon Henschen, ThinkAdvisor What You Need to Know Broker-dealer corporate RIAs are seeking to recruit advisors who will bring large amounts of assets to their proprietary platforms. The conflict-of-interest standards for promoting products like mutual funds don't seem to apply to advisory platforms. To keep assets flowing to their best profit centers, some BDs are keeping their advisors in the dark on better offerings. Broker-dealer corporate RIAs have jumped on the proprietary advisory platform bandwagon at a rapid clip over the last five years. We’ve been approached by broker-dealers wanting us to recruit advisors to their broker-dealer with a focus on bringing advisors to them, not only with a large percentage of advisory assets but assets that will specifically go into their proprietary advisory platform. Financial products such as mutual...

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At sketchy brokerages, FINRA is now part of HR

18:18 02 September in In the News by rafferty

September 2, 2021 By Lynnley Browning, Financial Planning Bad brokerages all too willing to look past an advisor's checkered past have a new hoop to jump through before potentially bringing them on board. Under new rules that began on Sept. 1, the Financial Industry Regulatory Authority, or FINRA, is forcing brokerages that want to hire financial advisors with sketchy records to undergo a “consultation” with the agency. The potentially uncomfortable sit-down could force a brokerage to apply for FINRA’s blessing to hire those brokers — with no guarantee the regulator would say yes. The brokerage industry's watchdog has new rules designed to rein in rogue brokers. The rules from FINRA, a self-regulating watchdog overseen by the Securities and Exchange Commission, affect firms that want to hire a broker who within the past five years has acquired...

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Three Ways Regulators Throw Advisors Under the Bus

14:23 12 July in In the News by rafferty

Financial service is the only industry where you are guilty after being found innocent. Anyone can file a customer complaint against an advisor, and even after the claim is denied or closed with no action taken, a record of the complaint goes on FINRA’s BrokerCheck for the world to see. If an advisor wants to expunge the frivolous claim, you need to spend $10,000 to $20,000 to hire a securities attorney to have it removed. This is just one of numerous issues advisors face with the regulator. Chronic regulatory overreach persists, yet it is tolerated with little pushback. Here are three particularly egregious areas of concern. For perspective, I’m including input from Jodee Rager, chief compliance officer and president of Geneos Wealth Management, and securities attorney Jim Eccleston. Guilty After...