Posts belonging to Category Churning

ETFs Encourage Speculation – Bogle


The biggest problem with exchange traded funds is the fact that they can be traded, according to Vanguard Funds Founder and index fund proponent John Bogle.  The ability to trade ETFs plays into one of the top ten mistakes made by investors. That mistake – trying to time the market.  Market timing is speculation, not […]

It is Important for Investors to Know about their Broker’s Recruitment Compensation Package


The Financial Industry Regulatory Authority is considering a rule change that would require firms to disclose brokers’ recruitment compensation packages to transferring customers. Brokers who are recruited to change firms often receive financial incentives that may subtly encorage them to engage in unlawful sales practices, such as churning and unsuitable sales, in order to generate […]

Respected Expert Warns of ‘Financial Train Wreck’


Too many investors speculate rather than invest according to John Bogle, the founder of the Vanguard Group and the creator of the Vanguard 500 Index Fund, which tracks the S&P 500 stock index. Investing means buying and holding; trading (frequent buying and selling) is speculation. Speculation is what happens when sales people act as financial […]

A Focus on Eliminating Elder Financial Fraud


We can all help eliminate financial fraud of the elderly. The elderly are common victims of financial fraud. Family members should be alert to warning signs that may signal a problem. Warning signs may include failure to pay bills, unopened statements from brokerage accounts, statements from a brokerage account the family was previously unaware of, […]

JP Turner Brokers Accused of Over-Trading Customer Accounts


Three former brokers at Atlanta-based securities brokerage firm JP Turner excessively traded (“churned”) customer accounts in order to produce $845,000 in commissions and fees for themselves and the firm, leaving those customers with $2.7 million in losses, according to the SEC.

SEC Sanctions JP Turner for Compliance and Supervisory Derelictions


The SEC has charged Atlanta-based securities brokerage firm JP Turner & Company, as well as its executive vice-president and head of supervision, Michael Bresner, and its president William Mello, with compliance violations and failure to supervise. JP Turner and Mello have reportedly agreed to settle with the SEC, but administrative proceedings remain pending against three […]

Why Simply ‘Looking Into’ Wall Street’s Failure To Perform Adequate Due Diligence Isn’t Enough


The Securities and Exchange Commission has identified broker-dealer due diligence as an area of high risk. Before recommending any investment, a brokerage firm is required by law to have a reasonable basis for believing the investment is suitable for customers to whom the investment is recommended, and for understanding all the material facts (the pros […]

Is Your Broker or Financial Adviser “Churning” Your Account?


The SEC defines “churning” as “the excessive buying and selling of securities in your account by your broker, for the purpose of generating commissions and without regard to your investment objectives.” If your broker has been aggressively trading your account (or urging you to trade your account) directing a high volume of trades that make […]