Author: HighRank
In 2012, the suitability rules the Financial Industry Regulatory Authority (FINRA) uses changed. Rule 2111 clarified and codified many precedents that were previously upheld and interpreted through case law. Rule 2111 replaces NASD Rule 2310 and offers clear standards that … Continue reading
Money management advisors use many different terms to describe themselves. While some people use descriptive terms interchangeably, financial service providers offer different levels of customer care and support. Understanding what a professional can offer and his or her credentials will … Continue reading
In the securities industry, churning occurs when an advisor excessively trades in a client’s account for the purpose of earning commissions. The practice is illegal in the United States under SEC rules. While the practice may benefit the advisor, it … Continue reading
When you are taking steps to recover fraudulent investment losses from a broker or firm, you have three major options for action: mediation, arbitration, and litigation. All three options have advantages and disadvantages, though one may be better than the … Continue reading
Ponzi schemes have existed in the world for over one hundred years, even before Ponzi himself lent his name to the practice. It has survived throughout the decades for one simple reason: the scam lures investors by offering investors high, … Continue reading
The standard broker-customer agreement usually states that disputes between the client and broker, including claims of fraud, will be settled through arbitration rather than litigation. This arbitration, which will be filed with FINRA (Financial Industry Regulatory Authority), does not involve … Continue reading