Jul 1, 2011
By Kristen French
Call it the Madoff effect. The SEC is still reeling from the discovery of the giant decades-long Ponzi scheme that Bernie Maddoff and his helpers pulled off, and trying to put rules in place to make sure it doesn't ever happen again...
Jun 29, 2011
By Kristen French
Raymond James on Thursday agreed to a multi-state settlement that will require the firm to buy back $300 million in auction rate securities (ARS) it sold to clients prior to the collapse of the ARS market in February of 2008...
Jun 24, 2011
By Ed Mason, Foley & Lardner LLP
Are you considering doing a deal, purchasing a broker/dealer? There are tons of regulatory issues to consider. ...
Jun 22, 2011
By Charlie Paikert
Morgan Keegan may soon be for sale after agreeing to a $210 million settlement with federal, state and industry regulators over issues related to subprime mortgage-backed securities....
Jun 20, 2011
By Bill Singer
A manager learns the hard way that wording matters...
Jun 7, 2011
By Diana Britton
Independent broker/dealer network Advisor Group is talking to a number of small and mid-sized broker/dealers that the company would consider purchasing, said Larry Roth, president and CEO of Advisor Group, which includes IBDs FSC Securities Corp., Royal Alliance Associates and SagePoint Financial...
Jun 6, 2011
By Diana Britton
The financial crisis and recent product blow-ups have forced firms to invest in new staff and resources, and spend more time assessing managers...
Jun 3, 2011
By Diana Britton
Independent broker/dealer Harrison Douglas Inc. has filed with the Financial Industry Regulatory Authority and the Securities and Exchange Commission to terminate its registrations and close the firm, after it was “unable to pay an adverse award,” said President Douglas Schriner. ...
Jun 1, 2011
By Kristen French
Annuity Abuse Variable annuities get a bad rap for a reason: they're so often used to abuse seniors...
May 31, 2011
By Charles Paikert
The global wealth management business has climbed to record highs, but pricing continues to be an Achilles ’ heel for the industry, according to a widely anticipated new study from The Boston Consulting Group...
May 13, 2011
By Bill Singer
Brokers who go unnamed in complaints may still face disclosure issues...
May 11, 2011
By Diana Britton
The Financial Industry Regulatory Authority and the Securities and Exchange Commission are stepping up their scrutiny of the accounting and audit process of broker/dealers, reviewing financials more closely and requesting data on a more frequent basis, according to panelists at Wednesday’s New York State Society of CPAs Broker/Dealer Conference...
May 9, 2011
By Jerry Gleeson and Diana Britton
New SEC rules that require federally-registered advisors to disclose their disciplinary histories in brochures and provide them to clients will get under way in earnest by the end of the summer. The initiative, aimed at improving transparency for investors, is likely to result in some difficult conversations for advisors with material marks on their records...
Apr 25, 2011
By Diana Britton
Ameriprise Financial (NYSE: AMP) plans to sell its independent broker/dealer unit Securities America, according to the company’s first quarter earnings report released today. Meanwhile, the firm is still in the process of finalizing a settlement with investors claiming SAI sold allegedly fraudulent private placements from Medical Capital Holdings and Provident Royalties...
Apr 1, 2011
By Diana Britton
Apr 1, 2011
By Kristen French
In his new book, David Skeel argues that Dodd-Frank financial reform legislation fails to limit financial risk or prevent another too-big-to-fail crisis. Worse, it institutionalizes bailouts and leaves American finance less stable and more politically ...
Mar 28, 2011
By Diana Britton
Securities America has made “substantial progress” in its mediation with plaintiffs’ attorneys involved in class action suits against the independent broker/dealer, said spokeswoman Janine Wertheim, in an email. ...
Mar 23, 2011
By Philip Palaveev
Securities America is just the latest broker/dealer to face financial distress. With so many firms falling into financial or legal hot water lately, financial advisors need to be prepared for the worst. Here’s a checklist for your Plan B. ...
Mar 17, 2011
By Diana Britton
Securities America will face a federal court judge Friday to decide whether the independent broker/dealer gets preliminary approval for a $21 million settlement agreement related to allegedly fraudulent private placements sold by the company. Firm says FA retention is nevertheless still strong....
Mar 15, 2011
By Bill Singer, RR Legal Columnist
FINRA deemed that an advisor’s tweets about a public company were unbalanced and lacked the necessary disclosure about the “substantial positions” held in the stock by the advisor and her family....
Mar 10, 2011
By Kristen French
In testimony before Congress Thursday, SEC Chairman Mary Schapiro made a case for an increase in the agency’s funding to $1.407 billion for 2012—describing the progress the SEC has made on internal reforms since she took the job two years ago, and enumerating the enormous increases in its responsibilities over the past six years. She seems to have gotten extra ammunition from the early release to Congress today of a Boston Consulting Group study of the SEC’s internal organization, which included recommended reforms for the agency. ...
Mar 9, 2011
By Kristen French
A couple of law students from Oxford, Miss., backed by vocal investor advocate Mercer Bullard, have ambitious plans to create an SRO (self-regulatory organization) for investment advisers. Their group would rival FINRA, the SRO for broker/dealers and currently the leading contender for the job. ...
Mar 7, 2011
By Charles Paikert
Wealth managers working for banks are grappling with the fallout of last year’s Dodd-Frank Wall Street Reform and Consumer Protection Act, according to top banking officials speaking at the opening general session of the American Bankers Association’s annual Wealth Management and Trust Conference in Miami Beach this morning....
Feb 1, 2011
By Kristen French
Research suggests disclosing conflicts can cause more harm than good....
Feb 1, 2011
By Bill Singer
Repayment of an EFL rested on whether a UBS branch was permanently closed...
Feb 1, 2011
By Diana Britton
Last year, the Financial Industry Regulatory Authority closed 6,241 arbitration cases, the highest number since 2006....
Feb 1, 2011
By Diana Britton
Jan 23, 2011
By Kristen French
In a Dodd-Frank study released over the weekend, the SEC recommended that all brokers and financial advisors adhere to the same strict fiduciary standard that currently applies to investment advisers when they provide personalized investment advice to retail customers. But two Commissioners expressed their dissent for the study's conclusions in a separate letter to Congress....
Jan 19, 2011
By Kristen French
In a Dodd-Frank report to Congress Wednesday night, the SEC supported imposing user fees on investment advisers as the best method for improving oversight. But it recommended legislators consider three options, including giving responsibility to one or more SROs. ...
Jan 11, 2011
By Kristen French
The SEC must deliver two Dodd-Frank reports to Congress by January 17 and January 21. Compliance consultants, securities lawyers and lobbyists expect the regulator to recommend an SRO for investment advisers in the first and a fiduciary standard for brokers in the second. ...
Jan 1, 2011
By Bill Singer
Advisors can face collateral damage when spouses feud over assets....
Jan 1, 2011
By Diana Britton
Jan 1, 2011
By David A. Geracioti
In the following 11 pages we examine some of the major trends that will affect the retail financial advisor in 2011....
Dec 1, 2010
By Bill Singer
FINRA backs an advisor's effort to clear his name...
Nov 18, 2010
By Diana Britton
Financial advisors have been afraid of using social media for fear of invoking the wrath of their compliance department. They shouldn't be, since use of social media is correlated to higher assets under management...
