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DOL Rule Could Force Broker Moves

16:31 01 December in In the News by rafferty

November 30, 2016 By Dan Jamieson, Financial Advisor Many advisors who will be unable to sell commissioned investments in IRAs after the DOL rule goes into effect are being forced to shop for new homes. Firms and recruiters are seeing an uptick in the number of inquiries by reps looking for firms that will accommodate commission business. Some firms appear to be waiting to see if the rule survives, but that’s a big risk, observers said, because advisors can’t be stuck come April, when the rule is set to go into effect, with no way to do business. The best-interest contract exemption, or BICE, allows brokers to sell commissioned investments to IRA owners. “We have never had so many live recruits,” echoed Steve Distante, chief executive of Vanderbilt Securities based in Woodbury, N.Y., an independent...

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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, such as embezzling a client’s...

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FINRA Sweeps Broker-Dealers’ Cross-Selling Practices

15:35 30 October in In the News by rafferty

October 28, 2016 By Melanie Waddell, ThinkAdvisor FINRA focused on nature, scope of BDs’ cross-selling activities and whether they are adequately supervised The Financial Industry Regulatory Authority has launched a review of broker-dealers’ cross-selling programs, and is probing BDs on a laundry list of questions, including whether they’ve opened accounts for clients without their consent. FINRA said in a statement that the self-regulator “often undertakes targeted reviews in areas of regulatory interest. In light of recent issues related to cross-selling, FINRA is focused on the nature and scope of broker-dealers’ cross-selling activities and whether they are adequately supervising these activities by their registered employees to protect investors.” The self-regulator’s probe comes on the heels of the Wells Fargo fake accounts scandal, in which the bank opened 2 million unauthorized accounts to reach cross-sale goals. The bank...