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Suitability

Proceeding in contravention of your own WSPs can prove costly
For the fourth straight year, AML tops the list
compliance staff failed to create P&Ps to ensure that reps were being monitored when placing clients in inverse ETFs
A failure to conduct reviews at specified intervals to determine if advisory accounts remained suitable for clients or if their assets should be moved to ...
The Commission’s complaint alleged that, during the period from 2011 through 2014, Dean recommended to thirteen customers a pattern of high cost, in-and-out trading without ...
FINRA’s recently released 2019 Risk Monitoring and Examination Priorities letter takes a new tact this go round by emphasizing new focus areas not noted in ...
FINRA has again delivered an early holiday present for the brokerage industry in the form of the SRO’s 2018 Report on Examination Findings. The second ...
The Commission’s complaint, alleged, among other things, that from April 1, 2013, through December 31, 2014, Berkey violated the antifraud provisions of the federal securities ...
Despite repeated warnings from FINRA, firms continue to have trouble meeting their suitability obligations. Witness the two Wells Fargo broker-dealers who were ordered to pay ...
FINRA has released its 2018 regulatory and examination priorities letter. The 10-page letter includes new topics as well as ongoing focus areas. Fraud, high-risk firms ...
FINRA has released its first consolidated findings from recent examinations, delivering on a pledge made by the SRO’s President/CEO Robert Cook at the start of ...
In each of the first three quarters of this year the SEC has filed charges of excessive trading against brokers. The streak continues with the ...
Complex products bring with them special supervision, suitability and rep training obligations.  Volatility-linked exchange-traded products fit squarely into this bucket and recently led to two ...
There is a price to pay for ignoring compliance mandates. Despite repeated warnings, restrictions and prohibitions from compliance, a former Morgan Stanley Smith Barney top ...
A former rep with a prior FINRA settlement on his record for violating the SRO’s suitability rules has now run afoul of the SEC for ...
Initial projections that FINRA would realize a record year for fines in 2016 (BD Watch, Oct. 13, 2016) have been confirmed. The SRO ordered a ...
Colgate-Palmolive has been paying an annual dividend to its shareholders since 1895. This fact wasn’t lost on a 28-year former Colgate employee who specifically advised ...
Merrill Lynch will pony up just over $7 million for inadequately supervising its customers’ use of leverage in their brokerage accounts. FINRA fined the firm ...
FINRA has signaled in the past that broker-dealers that sell mutual fund “L- shares” to variable annuity clients should anticipate heightened scrutiny (IA Watch, Aug. ...
However the Department of Labor’s new fiduciary rule may end up affecting you, don’t lose sight of your responsibility for suitability for regular brokerage accounts. ...
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