Seeking investment guidance in midlife can be tricky, so many people tend to use experts for help. However, so-called “experts” can be more detrimental than advantageous sometimes.
Former Pro Baseball Player Wins $1.7M FINRA Award
According to his attorney, Lloyd Schwed, Mr. Angel Pagan, former outfielder for the New York Mets, Chicago Cubs, and San Francisco Giants from 2006 to 2016, had a four-year $40-million contract with the Giants when he and his wife opened an account in Merrill Lynch’s Puerto Rico office, and claimed they lost about $2 million when the Puerto Rican Bond market collapsed in the fall of 2013. ority Inc.’s BrokerCheck and the Securities & Exchange Commission’s Investment Adviser Public Disclosure sites.
FINRA Pushes Ahead with New "Bad Broker" Rule
Website to Help Investors Recognize "Trusted Advisors"
A new investment website is using regulatory data about financial consultants to go beyond securities regulators’ databases to help investors determine whom to hire. The Investor.com website just issued the “Trust Algorithm,” which is now available for unrestricted use. The tool scrapes background data on financial advisers retrieved from the Financial Industry Regulatory Authority Inc.’s BrokerCheck and the Securities & Exchange Commission’s Investment Adviser Public Disclosure sites.
Suitability and Sales Practice Issues Top FINRA Report
The Financial Industry Regulatory Authority (FINRA) published its 2019 Report on Examination Findings and Observations on October 16, 2019. This marks the third published annual report of FINRA finding which in an unprecedented departure from the prior reports, distinguishes “findings” (determinations that a firm or registered person has violated SEC, FINRA or other relevant rules) from “observations” (suggestions as to how a firm might improve control of its environment).
How Brokers Violate Client Trust
Philadelphia Woman Charged in $100M Ponzi Scheme
An investment fund manager based in Philadelphia made headlines recently when she was arrested and charged in connection with an alleged $100 million securities fraud scheme, according to the US Attorney’s office based in Newark, NJ. The fund manager, Brenda Smith of Philadelphia, PA, was charged with several counts of wire fraud and one count of securities fraud. She was arrested in Philadelphia and charged in Newark.
Arbitration for Aggrieved Investors Is Fast -- But Is It Fair?
The arbitration clause can be found in virtually all the account opening documents used by registered broker-dealers. Maybe your financial advisor or stock broker pointed it out to you — maybe not. Chances are extremely good, however, that you signed this clause and are now bound to resolve any disputes through arbitration.
Anxious About Finances and Investments? You're Not Alone.
According to the National Financial Capability Study, the majority of Americans — and especially millennials, minorities, and single women — have lost confidence and a feeling of stability when it comes to their personal finances. Remarkably, these feelings have arisen in spite of the fact that the economy has been steadily improving over the same period of time.
SEC's New Best Interest to Protect Investors from Bad Brokers
The Securities and Exchange Commission (SEC) adopted a rule to protect investors from bad brokers. The “Regulation Best Interest” (or BI) is the SEC’s answer to the Obama administration’s planned “fiduciary rule,” which the Trump administration killed. But will the Best Interest rule really be in the best interest of investors?
FINRA Cracks Down on Bad Brokers, Small Firms
Securities industry regulatory body, FINRA (the Financial Industry Regulatory Authority), released its proposal for a rule that would crack down on firms with a high concentration of “bad” brokers. With its latest regulatory notice, FINRA stated that it would increase oversight of brokerages with a “significant history of misconduct,” requiring them to set aside additional funds that cannot be withdrawn without FINRA’s consent.
When Your Broker Departs
The financial industry self-regulator, FINRA, issued a new regulatory notice today aimed at broker-dealers with departing brokers. The notice was intended to urge broker-dealers to be more clear and forthright with customers about departing brokers and what will happen to the customers’ accounts. If you’ve ever been in the situation where your broker has either left for another firm, left the industry, or passed away, you understand just how confusing things can get when it comes to who will be handling your investments and why.
'Trust But Verify' When It Comes to Friendly Advisor Recommendations
In many cases, the operators of financial frauds and Ponzi Schemes the world over rely on people who have already been duped to bring in new suckers. Of course, the ones touting the services of a particular fraudster have no idea they’ve not only been deceived, but that they are helping weave an even larger web of deception. While it’s appealing to let others pick your advisor for you, the best thing to do is ‘trust but verify’ all financial opportunities.
Warren Wants FINRA to Toughen Broker Expungement Rules
New Rule May Have Big Impact on Older Investor Claimants
According to a recent announcement from FINRA’s Office of Dispute Resolution, they are drafting a new rule which would tag cases involving claimants 75 years or older for expediting processing. FINRA already has expedited processing available for 65 year or older or sick claimants — but the deadlines that generally determine the timing of the arbitration do not change. FINRA’s new rule would tackle that problem and hopefully greatly improve how quickly expedited claims move through the process by changing — ie, shortening — the actual deadlines.
Regulator Rules and Tools for Every Retail Investor
FINRA is far from a shadowy regulatory agency. They do their best to find themselves in the public eye, if only to keep investors informed on current regulations and scams. They also keep an exhaustive database of the professional records of all registered broker-dealers and financial advisors; the database is online and searchable. FINRA’s BrokerCheck is a mighty tool for investors seeking to learn more about their advisors; it’s one of many tools and rules that investors can use to protect themselves against fraud and malfeasance.
Is Your Broker to Blame for Excessive Losses in the Stock Market?
The last few months have been a difficult time for many investors. The stock market has taken a major dive, closing out 2018 with the worst performing December since The Great Depression. With so much volatility, it’s crucial that investors have a carefully planned portfolio with an adequate amount of diversification. Above all, that portfolio should match the individual investors risk tolerance and investment objectives. That match must be valid from the day it was made until today. A portfolio that worked for an individual investor in a bull market may be a terrible match for that same person in a bear market.
FINRA May Ban Non-Attorney Representatives in Securities Arbitration
Ten Years After the Madoff Scandal: What We Can Take Away
We may never forget Madoff’s crimes. Let’s hope we don’t. And yet, investors still fall prey to so-called “mini-Madoffs” every day all over the country. If you keep your eye on the financial press, particularly news from regulators such as the SEC or FINFRA, Ponzi schemes identical in nature and structure — if not scope — to Madoff’s bubble up and burst too often to keep track.
How to Sniff Out a Crooked Investment Scheme
An investor gets introduced by mutual friends to a financial professional who almost immediately begins pitching the investor on an amazing opportunity. Because the investment professional seems like a good guy or gal, and because he or she was introduced by someone the investor already knows and trusts, the investor unconsciously transfers that sense of trust to the broker or hedge fund manager or mutual fund whiz. The investor’s guard is already down. What happens next?