Compliance
Schwab Is Instituting Automatic Suitability Warnings On Exchange Traded Notes (ETNs)
- Details Category: Regulatory
Similar to the way options trades have a suitability warning signal before they’re executed, trades in Exchange Traded Notes (ETNs) will soon automatically produce a pop-up alert for retail investors. FINRA is looking into the way ETNs are marketed to investors, especially after the value of a popular ETN designed to track the volatility of the market lost significant value.
SEC Spends Funds On Mandated Consulting But Can't Afford To Implement Recommendations
- Details Category: Advertising Compliance
Since the 2008 credit crisis, the SEC has been criticized for its lack of effective management and organization. But it spent so much money getting recommendations for restructuring that it can no longer afford to implement them. Restructuring could also be disruptive to operations. So the agency will focus on a small number of projects, none of which includes revamping its operations.
New Survey Says Dodd-Frank Will Help Restore Client Trust
- Details Category: Regulatory
A new survey shows financial industry executives think that the new Dodd-Frank regulations will help restore investor trust. Reputations in the industry were harmed by the 2008 credit crisis as investors lost confidence that firms were acting in their best interests. The Madoff incident also significantly eroded investor trust.
Clients Need Greater Disclosure And Clear Language In Choosing Advisors
- Details Category: Regulatory
The Certified Financial Planner (CFP®) Board is becoming more proactive in its recommendations to the SEC. Its latest letter says that clients need more information about advisors to be able to choose the right advisor. And they need this information to be published in a language they can understand.
Fiduciary Capacity Isn't A Term That Only Applies To You; It May Also Apply To Your Clients
- Details Category: Regulatory
Many of your clients are acting in a fiduciary manner and may not even know it, says Don Trone, who created the Global Fiduciary Strategist (GFS) standard. Trone offers practical advice as your clients look to you to support them in fulfilling their own fiduciary roles.
