Brokers, tell the B-D when selling cannabis investments
Don t risk letting your career go up in smoke
December 21, 2020
Investments in cannabis-related businesses has boomed as some states have legalized marijuana, but brokers and advisers can face plenty of problems if they don’t follow industry guideline when it comes to selling private securities of such businesses.
Indeed, it appears that, as the year ends, the Financial Industry Regulatory Authority Inc. is taking a close look at how broker-dealers and their advisers’ conduct so-called “outside business activities.” Registered reps have to get the approval of their broker-dealer before getting paid from a different business or joining a partnership.
Finra slams Cetera with $1 million fine over RIA supervision
The shortcomings were related to supervision of some dually registered reps, according to the regulator
December 17, 2020
Finra earlier this week hit Cetera Financial Group broker-dealers with a fine totaling $1 million for failing to supervise certain private securities transactions made by dually registered representatives at unaffiliated, outside registered investments advisers.
The shortcomings in supervising advisers who work at the independent, outside RIAs and also work with the Cetera firms as brokers go back to 2011, according to the Financial Industry Regulatory Authority Inc. settlement, which was released on Tuesday. Three firms were the focus of the Finra action: Cetera Advisor Networks, Cetera Advisors and Cetera Financial Specialists.
CFP Board launches redesigned consumer website
Let’s Make a Plan provides help on how to choose and pay for a financial planner
December 16, 2020 3 MINS
The Certified Financial Planner Board of Standards Inc. relaunched a website Wednesday to help prospective clients find a planner who’s a good fit for their needs.
The Let’s Make a Plan site was overhauled based on research conducted earlier this year that showed that the most important factors for consumers in the selection of an adviser are how they pay for a financial planner, whether they can afford it and whether the return was worth the cost.
Morgan Stanley loses appeal of $3.3 million award
The U.S. Court of Appeals affirms an earlier ruling against Morgan Stanley in a case regarding the sale of Puerto Rico bonds
December 15, 2020
Morgan Stanley last Thursday was dealt one more blow in its effort to overturn a 2019 Finra arbitration panel decision that ordered the firm to pay $3.3 million to investors in a Puerto Rico bond case, most of it because the firm allegedly concealed evidence in a hearing.
Plaintiff’s attorneys routinely grumble that broker-dealers can be far from forthcoming in turning over documents during arbitration, dragging their feet during discovery. This claim, and the large award, highlights the issue.
Adviser moves are hopping as 2020 finally comes to a close
Advisers are dashing for the door before the end of an eventful year turned upside down by COVID-19
December 11, 2020
December so far has seen a flurry of reps and advisers dashing to new firms, with big broker-dealers and registered investment advisers, including LPL Financial, Securities America and Cetera Financial Group, reporting the addition of veteran advisers and teams to their ranks.
And the market for RIA breakaways from the wirehouses is continuing its brisk pace: Mayflower Advisors, which managed $3.75 billion as a hybrid affiliate of Wells Fargo Advisors Financial Network, known as FiNet, became an independent RIA.