December 2, 2017
Not Fade Away Tops FINRA Regulatory Chart http://www.brokeandbroker.com/3698/finra-away-account/ In a recent FINRA regulatory settlement, one unlucky registered rep hit the trifecta when he was sanctioned for maintaining an away account, for trading away from his firm, and for landlording (I think that's a word but if it isn't, well, you know what, it is now). If you're planning on joining a new firm next year, make sure to carefully consider the ramifications of maintaining or opening a new brokerage account that will not be housed at your next firm. Similarly, if you're thinking of buying some rental property, take note of the need to notify your firm of that outside business activity. READ http://www.brokeandbroker.com/3698/finra-away-account/
Another day and another lawsuit over a variable annuity. In today's offering, we have an interesting wrinkle involving a minor who was named as the beneficiary of a VA and a registered representative who may not have timely submitted the paperwork to effectuate the beneficiary designation. Frankly, it's not really clear as to why a lawsuit was even needed to resolve the dispute but, hey, I'm a lawyer and, you know, what good is being a lawyer if folks don't have to pay for my services.
READ http://www.brokeandbroker.com/3696/finra-friend-arbitration/
In the current installment of this regulatory saga, Bruce M. Zipper sought a stay from the Securities and Exchange Commission pending his appeal of FINRA's denial of permission for his continued association with a member firm attendant to his statutory disqualification. READ http://www.brokeandbroker.com/3693/sec-zipper-stay/
Today's BrokeAndBroker.com Blog considers a recent regulatory settlement imposed upon a former stockbroker by the Financial Industry Regulatory Authority. Our publisher Bill Singer accepts that allegations as true but is troubled by the lack of effective compliance oversight, which amounts to little more than reading toe tags in the morgue. Bill asks what is the value of the self-regulation of Wall Street when FINRA announces in November 2017 that it has fined and suspended an individual who retired from the industry in April 2015 after he had allegedly engaged in misconduct throughout 2014 that caused nearly $1 million in losses during in the accounts of elderly, retired customers?
READ http://www.brokeandbroker.com/3688/finra-awc-suitability/
It's holiday time and that means another year about to go under your belt. Which also means that you're getting ready for another round of annual compliance meetings, annual compliance questionnaires, and annual reviews of your book of business (and you're once again hoping that your firm doesn't uncover that short-cut you took with some paperwork and doesn't ask too many questions about the losses in that nice widow's account). In a recent FINRA regulatory settlement, we consider the fine and suspension imposed upon a registered rep who engaged in an excess of customer service when it came to completing forms and obtaining original signatures. Bah Humbug! Now that's the holiday spirit!
READ http://www.brokeandbroker.com/3690/finra-signature-/
