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ThinkAdvisor

The Chilling Effect of an Over-Zealous FINRA’s Gibbeting

16:59 11 November in Articles Written by Jon Henschen by rafferty

November 11, 2016

by Jon Henschen, as featured on ThinkAdvisor

Displaying the bodies of executed criminals in public was a common practice in medieval times. The authorities did so to deter anyone from considering committing similar crimes. The practice, known as “gibbeting” refers to the mechanism from which the corpses of the criminals were hung when put on public display.

FINRA also does gibbeting, although metaphorically, through FINRA BrokerCheck as well as the numerous press articles on advisor misdeeds we see daily. The trend over the last few years reveals that issues previously either not on FINRA’s radar or considered minor issues are now not only a big deal but potentially a career ender.

Unintended Wrongdoing or Felony Offense?

My intent is not to diminish the severity of legitimate wrongdoing,

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ThinkAdvisor

FINRA Floats Rule Changes on Gifts, Noncash Comp

19:31 10 August in In the News by rafferty

August 10, 2016

By Melanie Waddell, ThinkAdvisor

 

Among planned changes includes raising the gift limit from $100 to $175

The Financial Industry Regulatory Authority is seeking comments on its plan to amend its gifts, gratuities and noncash compensation rules.

The proposed new rules, issued in Regulatory Notice 16-29, would raise the gift limit from $100 to $175, mostly to account for inflation, notes Cipperman Compliance Services. The new rules would also impose the noncash compensation restrictions on all securities transactions rather than just mutual funds, variable annuities, direct participation programs (DPPs) and public offerings.

FINRA’s proposal would also replace previous guidance on business entertainment — allowing “ordinary and usual business entertainment” — with a requirement to implement policies and procedures ensuring no quid pro quos,

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