2017 Regulatory and Examination Priorities Letter

Posted on April 13th, 2017 at 3:13 PM
2017 Regulatory and Examination Priorities Letter

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the first in a series of posts to discuss FINRA’s 2017 Regulatory and Examinations Priorities Letter. FINRA’s 2017 letter provides information about areas FINRA plans to review in 2017 based on observations from its regulatory programs as well as input from various stakeholders, including member firms, other regulators and investor advocates.

To begin, FINRA will assess how firms conduct suitability reviews by examining how different firms vet products, supervisory systems and controls to review recommendations. As a result, FINRA recommends that firms require training for their registered representatives, compliance and supervisory staff to ensure that they understand the objectives, risks and pricing factors of the products they sell.  Furthermore, FINRA also will increase its focus on how firms monitor concentration in its customers’ accounts.

In the letter, FINRA also stated that concerns with suitability and concentration can arise with many products. These products include speculative energy-based investments, complex or novel exchange-traded products (ETPs), structured retail products, leveraged and inverse exchange-traded funds, non-traded real estate investment trusts (REITs), and unlisted business development corporations (BDCs). In addition, FINRA writes that although these products may be suitable for some customers, certain products are not appropriate because of certain risk factors. Given those concerns, FINRA plans to ensure that firms perform and supervise customer specific suitability determinations.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial investors including Securities FraudUnauthorized TradingBreach of Fiduciary DutyRetirement Planning Negligence, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, James Eccleston, Eccleston Law LLC

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

January 21, 2022
CFP Board Establishes New Appeals Commission

The Certified Financial Planner (CFP) Board of Standards has established a new Appeals Commission. As the name suggests, the Appeals Commission possesses the sole authority to adjudicate appeal hearings.

January 20, 2022
Edward Jones Fails To Convince Supreme Court To Review Federal Preemption of Account Fee Suit

Edward Jones & Co. failed to convince the U.S. Supreme Court to analyze how a federal securities law impacts a client dispute pertaining to fee-based accounts.

January 19, 2022
SEC Charges Texas Entities Over Oil and Gas Fraud

The Securities and Exchange Commission (SEC) has charged The Heartland Group Ventures, Heartland Production and Recovery, six other Heartland-affiliated entities, four Heartland-affiliated individuals as well as several oil and gas operators.