Compliance

NASAA’s annual survey of regulators sheds light on legal proceedings against BDs, RIAs and unregistered firms that often go unnoticed in the wider industry.

They’re grinding forward with changes, even as complicating factors emerge ahead of when the rule takes effect next year.

Even though many of its members weren’t satisfied by the SEC’s rule, NASAA praises the inclusion of a requirement to consider costs in a recommendation.

The IBD trade group launched a public campaign after more than 80 cases this year alleging inadequate disclosure of mutual fund fees and compensation.

The SEC published more than 1,300 pages of regulatory information. Here's what advisors need to know.

The IBD failed to adequately disclose conflicts of interest to clients related to receiving $10.8 million from mutual funds and its clearing broker, the SEC says.

Due to a 2010 FINRA rule change the answer is — with difficulty.

Critics reject the notion that disclosure alone is sufficient for reigning in conflicts — but the charges against Commonwealth have put BDs on notice.

A barred and terminated former Securities America advisor’s conduct was “appalling, reprehensible and evil,” according to a federal judge.

An RIA owner accused the custodian of aiding his chief compliance in setting up a competing firm.

The firm didn't disclose its conflicts of interest in receiving over $100 million in revenue sharing from mutual funds over nearly five years, the SEC says.

Former retail brokerage head David Kowach is moving to the consumer bank.

The bank will pay $1.25 million for alleged supervisory failures.

The commission warns practices to tighten up supervision and ensure accurate disclosures.

The bank has been slashing expenses, but executives acknowledged they remain high. Between having to hire thousands of compliance employees and waiting on the next CEO to be named, investments in new technology or other long-term growth are limited.

A barred broker told clients the lifestyle media company was about to be acquired, so “they needed to act quickly,” according to the regulator.

The suggestion comes amid opposition from brokerage firms to an expanded fiduciary obligation.

The chairman says the commission is working closely with FINRA on inspection plans to hold brokers to account.

Summit Brokerage Services wasn’t feeding the notifications into the transactions blotter while its ownership went into flux, according to the regulator.

Clients seeking to recoup some $14 million in damages have received only 12% of their total claims, according to an SEC-appointed receiver.