Broker-Dealers Facing Scrutiny From Several Regulators
August 21, 2015 Financial Advisor IQ Regulators are not happy with what’s happening in the broker-dealer segment this year. Finra is giving broker-dealers until Sept. 18 to answer questions about compensation and conflicts of interest, ThinkAdvisor writes. Outside auditors of broker-dealers, meanwhile, are taking flak for utterly failing to do their job, Financial Advisor magazine reports. Finra’s questionnaire, limited to the retail accounts managed by broker-dealers, consists of 19 questions about firms’ activities over the past year related to compensation policies, review of supervisors and the role of the board, as well as policies to detect conflicts of interest and methods to curb them, according to ThinkAdvisor. The self-regulator acknowledged “instances of positive change” since its October 2013 report on conflicts of interest, but also said that the issue is a “recurring challenge” that can lead to poor...