broker misconduct

Arbitration for Aggrieved Investors Is Fast -- But Is It Fair?

Arbitration for Aggrieved Investors Is Fast -- But Is It Fair?

The arbitration clause can be found in virtually all the account opening documents used by registered broker-dealers. Maybe your financial advisor or stock broker pointed it out to you — maybe not. Chances are extremely good, however, that you signed this clause and are now bound to resolve any disputes through arbitration.

Anxious About Finances and Investments? You're Not Alone.

Anxious About Finances and Investments? You're Not Alone.

According to the National Financial Capability Study, the majority of Americans — and especially millennials, minorities, and single women — have lost confidence and a feeling of stability when it comes to their personal finances. Remarkably, these feelings have arisen in spite of the fact that the economy has been steadily improving over the same period of time.

SEC's New Best Interest to Protect Investors from Bad Brokers

SEC's New Best Interest to Protect Investors from Bad Brokers

The Securities and Exchange Commission (SEC) adopted a rule to protect investors from bad brokers. The “Regulation Best Interest” (or BI) is the SEC’s answer to the Obama administration’s planned “fiduciary rule,” which the Trump administration killed. But will the Best Interest rule really be in the best interest of investors?

FINRA Cracks Down on Bad Brokers, Small Firms

FINRA Cracks Down on Bad Brokers, Small Firms

Securities industry regulatory body, FINRA (the Financial Industry Regulatory Authority), released its proposal for a rule that would crack down on firms with a high concentration of “bad” brokers. With its latest regulatory notice, FINRA stated that it would increase oversight of brokerages with a “significant history of misconduct,” requiring them to set aside additional funds that cannot be withdrawn without FINRA’s consent.

When Your Broker Departs

When Your Broker Departs

The financial industry self-regulator, FINRA, issued a new regulatory notice today aimed at broker-dealers with departing brokers. The notice was intended to urge broker-dealers to be more clear and forthright with customers about departing brokers and what will happen to the customers’ accounts. If you’ve ever been in the situation where your broker has either left for another firm, left the industry, or passed away, you understand just how confusing things can get when it comes to who will be handling your investments and why.

'Trust But Verify' When It Comes to Friendly Advisor Recommendations

'Trust But Verify' When It Comes to Friendly Advisor Recommendations

In many cases, the operators of financial frauds and Ponzi Schemes the world over rely on people who have already been duped to bring in new suckers. Of course, the ones touting the services of a particular fraudster have no idea they’ve not only been deceived, but that they are helping weave an even larger web of deception. While it’s appealing to let others pick your advisor for you, the best thing to do is ‘trust but verify’ all financial opportunities.

Warren Wants FINRA to Toughen Broker Expungement Rules

Warren Wants FINRA to Toughen Broker Expungement Rules

Sen. Elizabeth Warren, a Democrat from Massachusetts who recently announced she would be running for president, urged the CEO of the securities industry self-regulator, FINRA, to toughen new rules controlling the expungement of incidents on the permanent records of financial professionals.

Regulator Rules and Tools for Every Retail Investor

Regulator Rules and Tools for Every Retail Investor

FINRA is far from a shadowy regulatory agency. They do their best to find themselves in the public eye, if only to keep investors informed on current regulations and scams. They also keep an exhaustive database of the professional records of all registered broker-dealers and financial advisors; the database is online and searchable. FINRA’s BrokerCheck is a mighty tool for investors seeking to learn more about their advisors; it’s one of many tools and rules that investors can use to protect themselves against fraud and malfeasance.

Is Your Broker to Blame for Excessive Losses in the Stock Market?

Is Your Broker to Blame for Excessive Losses in the Stock Market?

The last few months have been a difficult time for many investors. The stock market has taken a major dive, closing out 2018 with the worst performing December since The Great Depression. With so much volatility, it’s crucial that investors have a carefully planned portfolio with an adequate amount of diversification. Above all, that portfolio should match the individual investors risk tolerance and investment objectives. That match must be valid from the day it was made until today. A portfolio that worked for an individual investor in a bull market may be a terrible match for that same person in a bear market.

FINRA May Ban Non-Attorney Representatives in Securities Arbitration

FINRA May Ban Non-Attorney Representatives in Securities Arbitration

FINRA sent an official request to its governing body, the SEC, asking for a ban of non-attorney representatives, though the request does allow non-attorneys to represent investors pro bono, as well as for investors to represent themselves. FINRA is still awaiting the SEC’s final decision.

How to Sniff Out a Crooked Investment Scheme

How to Sniff Out a Crooked Investment Scheme

An investor gets introduced by mutual friends to a financial professional who almost immediately begins pitching the investor on an amazing opportunity. Because the investment professional seems like a good guy or gal, and because he or she was introduced by someone the investor already knows and trusts, the investor unconsciously transfers that sense of trust to the broker or hedge fund manager or mutual fund whiz. The investor’s guard is already down. What happens next?

How to Tell If A Potential Broker Is Good or Bad

How to Tell If A Potential Broker Is Good or Bad

One big reason brokerage firms severing ties with a particular broker is that investors tend to be loyal to brokers over brokerage firms. In defaming departing brokers, brokerage firms may be trying to pry departing customers away from their financial advisors in order to keep them for themselves.

Aging Parents & Unscrupulous Brokers

Aging Parents & Unscrupulous Brokers

Yet another article from The New York Times reminds us that in caring for our aging parents and relatives, not only are we responsible for finding them suitable end of life care and living arrangements, but we must also keep an eye on the people managing their money.

Marvel Comics Creator Needs Superhero to Combat Elder Abuse

Marvel Comics Creator Needs Superhero to Combat Elder Abuse

The federal government has kicked into high gear regarding elder financial abuse. But the best way to prevent it from happening remains to take precautions on your own behalf or on behalf of your parents and grandparents.

Broker Best Interest Regulations Fall Short

Broker Best Interest Regulations Fall Short

In order to reform the system, investor advocacy groups have suggested the SEC enhance the standard to which brokerages and brokers are held with regard to investor best interests. Currently the standard is based on the necessity of matching investor and investment through a concept known as "suitability." Investor advocates like PIABA, however, want to raise the bar to the "best interest” standard.

Ex-Eagles Player Embroiled in $10 Million Ponzi Scheme

Ex-Eagles Player Embroiled in $10 Million Ponzi Scheme

A judge in Virginia federal court ordered a former broker and his alleged accomplice, former Philadelphia Eagles linebacker Merrill Robertson Jr., to forfeit $8 million. The money was allegedly generated by Robertson and Sherman Vaughn Jr. through the operation of a Ponzi scheme which lasted from 2009 to 2016.

Philly Fed Urges Seniors to Use Trusted Contact Program to Protect Wealth

Philly Fed Urges Seniors to Use Trusted Contact Program to Protect Wealth

In a recent pronouncement, the Federal Reserve Bank of Philadelphia has suggested that anyone - but especially Philly seniors - provide their bankers or brokers with trusted contact information in the hope of cutting down on elder financial abuse.

Is the Broker "Best-Interest" Rule in Your Best Interest?

Is the Broker "Best-Interest" Rule in Your Best Interest?

Investment advisors and financial advisors are held to different standards of accountability when it comes to the investments they make on behalf of clients. Investment advisors have long been held to what is called the "fiduciary standard." Find out what the difference means for you and your money.

The Broker Oath - But Will It Work?

The Broker Oath - But Will It Work?

Thanks to a recent decision by the Fifth Circuit, it appears that brokers will, once again, get off the hook when it comes putting their clients' interests in front of their own. Into the breach has stepped an idea that has been kicking around for a years now, but which may be the best of several uninspiring options to compel brokers to act more responsibly toward investors: The Oath.