Posts belonging to Category Stockbroker Standards of Conduct

Securities Regulators Set High Standards for Firms Selling Complex Investments


The Financial Industry Regulatory Authority has issued a Regulatory Notice (12-03, Jan. 2012) to “remind” its member firms of their sales practice obligations with regard to complex products, and to provide them “guidance” in exercising heightened scrutiny and supervision over marketing and sales of complex products. Complex products are not defined in the Notice, but […]

Survey – Financial Service Professionals Less Trusted Than Car Salesmen


The declining public trust in the financial services industry confirms the serious problems permeating the industry. A recent survey by the public relations firm Edelman revealed that more than half of the educated public distrusts firms in the financial services sector, making it the nation’s least-trusted sector for the second year in a row (See […]

Financial Advisers Sued for Misrepresenting Credentials and Qualifications


The SEC is going after advisory firms and their principals that misrepresent facts that bear on their experience and credentials on form ADVs. Such violations suggest an intent to mislead investors. (“ADV crackdown on, as SEC says firm claimed $200M in AUM, had $3M,” InvestmentNews).

Does Wall Street Believe that Breaking the Law is Just a ‘Part of Doing Business?’


Whether from “outright bribery and the hope of future job offers” or “ideological conformity and the desire for good relationships and a peaceful life,” the Securities and Exchange Commission is a “captured” agency controlled by Wall Street. That is why the SEC allows the likes of Citigroup to sell its clients a product that Citigroup […]

Regulator Warns Brokerage Firms About Misleading Seniors


Concerns have developed that certain stock brokerage firms have misused “senior” designations in a manner that is misleading to investors. In fact, the Financial Industry Regulatory Authority Inc. (FINRA ) is warning Wall Street brokerage firms about the use of special “senior” designations when marketing investments products.

Securities Regulators Say That Bad Business Practices Are on the Rise at Investment Advisers


State regulators uncovered 3,543 unethical practices and rule violations, an average of 4.3 violations per advisory firm, during the first half of this year. Among the violations that InvestmentNews, an industry publication, found to be especially noteworthy were individual advisers falsely designating themselves as “registered investment advisers.” See “States: Advisers violating rules by using ‘RIA,’” […]

Raymond James’ Affiliates Gouge Investors


Raymond James affiliates have been ordered to pay $2.1 million in fines and restitution to more than 15,500 of its customers for overcharging them in 27,000 transactions. Raymond James customers paid nearly $1.7 million in excess commissions, according to the Financial Industry Regulatory Authority (FINRA). In addition, FINRA found that Raymond James’ supervisory systems were […]

The Battle Over a Fiduciary Standard Heats Up


Concerned that securities industry zealots and a Republican Congress will succeed in delaying an SEC rule that would require brokers who provide retail investment advice to act solely in their client’s best interest, investor advocates are stepping up their campaign to urge the SEC to move forward with a rule, according to an InvestmentNews article […]

Special Interest Groups and House Republicans Continue to Pressure SEC to Delay Formal Approval of a Fiduciary Standard for Financial Services Firms


With Republicans pressuring the Securities and Exchange Commission to back off, there is a good chance that the SEC will not promulgate a new fiduciary-standard any time soon, according to Evan Cooper’s InvestmentNews article entitled “The B-S solution to the fiduciary issue.”

Investor Wins Interest Rate Swaps Claim Against Deutsche Bank


In a decision “likely to ripple across Germany’s banking sector,” a German court ruled that Deutsche Bank failed to disclose the “real and ruinous” risks and its “gross conflict of interest” in selling interest rate swaps to a business client, according to a Wall Street Journal article entitled “Deutsche Bank Loses Swaps Case” by Laura […]