Yesterday, we discussed the case of a registered representative who was sanctioned by the Financial Industry Regulatory Authority ("FINRA") as a result of some alleged improper conduct in connection with variable annuities ("VAs") switches. "The Ol' Variable Annuity Switcheroo" (BrokeAndBroker.com Blog, September 3, 2015). In today's article, we consider the ordeal of a registered representative who was accused of engaging in improper sales of annuities and wound up being sued by a customer in a FINRA Arbitration. READ
Few products cause more regulatory pain for registered persons than Variable Annuities ("VAs"). No one really seems to like the stuff except for the fact that, well, you know, it's sort of lucrative and most brokerage firms push the salesforce to sell a ton of it. Among the biggest pains with VAs is when customers are sitting with an older model and there's a financial incentive to registered reps to switch the customers into something newer. Ah, and then all regulatory hell is unleashed. Read this recent FINRA settlement. READ
On August 28, 2015, the Federal Bureau of Investigation published an online article "Business E-Mail Compromise / An Emerging Global Threat." The BrokeAndBroker.com Blog regularly covers stories about electronic communication fraud and has reprinted in full-text the FBI article below. READ
To say that the last week has been a tumultuous one for the stock market would be an understatement.It's been over, under, sideways, down and one hell of a gut-churning ride, with more twists and turns ahead. Y'all enjoy yesterday's plummet? Sort of reminds you of the old Yardbirds with the comings and goings of guitarists Eric Clapton, Jeff Beck, and Jimmy Page. The world was coming to an end when Eric left and was replaced by who? When Jeff moved on, we knew that we were never going to find the likes of another Eric or Jeff -- Jimmy who? All of which reminds us of the power of creative destruction and the need to embrace change, even if it's scary. So, enjoy whatever the next several tradings sessions may bring. READ and LISTEN to the BrokeAndBroker.com Blog's pre-Labor Day Holiday musical extravaganza with guests the Yardbirds and Alabama Shakes.
Does she need to be registered with your FINRA firm in order to do that? Does he need to be registered with your FINRA firm before you can pay him a fee? Such registration issues often bedevil member firms and their compliance/legal staff. Unfortunately, it's not always a simple "Yes" or "No," and by the time you recognize that registration may be necessary, the subject individual has often crossed the line and dragged the brokerage firm into a quagmire. Consider this recent FINRA registration settlement. READ