Compliance

Five firms agreed to pay $3 million to settle an SEC investigation into unsuitable sales of complex exchange-traded products.

While FINRA rules spell out what brokers generally need to determine a client's financial situtation, there can be gray areas, an expert says.

But the regulator also ordered record payouts in 2020, including restitution through a self-reporting program that drew industry ire.

The rule has faced a host of criticism from investors, environmentalists, asset managers and others.

Unclear — or no — disclosures were among a number of concerns regulatory officials expressed about initial examinations.

CEO Jamie Price says the change will reduce potential conflicts of interest related to transaction fees and come with lower prices in wrap accounts.

Although in-person hearings aren’t banned outright, none have taken place since the onset of the coronavirus pandemic.

The former J.W. Cole advisor’s practice allegedly sold more than $40 million worth of unsuitable and unregistered promissory notes.

The regulator would generate an additional $225 million per year from the fee increases.

The advisor allegedly carried out a 20-year scheme defrauding at least 15 clients through forgery and misrepresentations.

The advisor allegedly used an omnibus trading account to help himself and hurt his clients to the tune of tens of thousands of dollars, according to the regulator.

Director tenures, nominations and committees are changing after an independent task force identified weaknesses.

The discrimination case revolves around allegations of disparate treatment in the firm’s agency distribution channels.

Actions hit a nine-year high and restitution climbed to the highest total since 2013 — even before the rule’s heightened scrutiny.

Based on the “forced experiment” of its remote periodic examinations of broker-dealers, the onsite portion “may not be necessary,” Robert Cook said.

Expenses fell by 20 basis points and risk-adjusted returns climbed 92 bps, according to the study.

The former broker allegedly also used his client’s money to pay bills at gas stations, grocery and hardware stores, according to the regulator.

The free lunches are over. Sort of.

The firm’s National Financial Services allegedly failed to deliver certain basic information to clients in five public offerings of shares in a fuel cell technology company.

The department faced scathing criticism for hours from insurers and consumer advocates alike.