Our exhaustive library of resources and guidelines designed to help professionals maintain a sterling reputation founded on trust, ethics, and best practices.
If you’re a registered investment advisor worried about providing the new required Form ADV data, relax. You just caught a break from the Securities and Exchange Commission.
It’s probably not hyperbole to say that the new U.S. Department of Labor fiduciary rule is completely changing the financial services sector.
The rule, which started implementation on June 9, is altering the way many annuity salespeople do business.
Unless your head has been in the sand, more than likely you are aware that the DOL fiduciary rule now requires all financial professionals to adhere to a fiduciary duty when servicing client's qualified retirement assets.
We've often said the vast majority of financial advisors are ethical and would no sooner rip off Grandma or Grandpa than lop off their own right arm. However, it’s also fair to say a much larger percentage of advisors have ethical or compliance lapses through ignorance, inattention, or just sheer sloppiness. This is especially true regarding the development and use of advertising materials.
You know the feeling. You’re driving down the road, albeit a little too fast, when the police pull you over. Because of your inattention, you receive a speeding ticket, and now must pay a fine of $250. Ouch! Although you know you messed up, you’re still not fine with writing such a large check.
The securities industry has been taking it on the chin of late. A recent Reuters investigative report charged that 48 FINRA-member firms have at least 30 percent of their brokers with black marks on their records. This represents 4,600 brokers industry wide and billions of dollars of investor funds, Reuters said.
Financial advisors have a perennial trust problem. And it isn’t getting any better. According to a new survey published by wealth management firm Personal Capital, 32 percent of U.S. adults believe financial advisors are likely to take advantage of them. What’s more, 70 percent of the 2,178 American consumers surveyed said recent financial-industry news has given them second thoughts about trusting anyone with their money.
A fellow who bills himself as an industry marketing expert recently sent me an email. It was a very well put together, nice-looking offer to procure more than 200 marketing ideas. To learn them all, I had to provide him with my contact information. This guy made a critical error, from my perspective. He sent three of his marketing ideas as a teaser. Two of the three advocated dishonesty to get prospects attention. They weren’t whopping lies, just a little shy of 100 percent true.
Six women looking for love instead got their heartstrings entangled with a rogue Connecticut advisor.
As the number of consumers using social-media networking sites continues to grow, FINRA has provided ongoing guidance for financial advisors wanting to promote their firms online without getting into trouble.
In financial services, not only does crime generally not pay, but being a serial regulatory offender often results in tougher regulatory scrutiny. That’s according to a press release from the Financial Industry Regulatory Authority (FINRA) Board of Governors.