Finra Keeping Pressure on Complex Products in 2014

Posted on January 13th, 2014 at 3:38 PM

From the Desk of Jim Eccleston at Eccleston Law Offices:

Finra's 2014 annual list of examination priorities re-emphasizes common trouble spots for broker-dealers, and ratchets up enforcement in key areas, including interest-rate-sensitive products and rogue brokers.

Nontraded real estate investment trusts (“REIT”), complex structured products, emerging-market investment funds, mortgage-backed securities, long-duration bond funds and municipal securities are among Finra's top priorities.

The new twist this year was Finra's focus on fixed-income products, emerging markets debt and hedging products that could be susceptible to interest rate volatility.

Finra also said that it will expand a program implemented last year to target rogue brokers who land at new firms after being disciplined or fired, which includes reviewing the firm's due diligence conducted in the hiring process for the adequacy of supervision of higher-risk brokers — including whether the brokers have been placed under heightened supervision —and placing particular focus on these brokers' clients' accounts in conducting reviews of sale practices. 

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.