Securities regulators are expecting a steep increase in the number of complaints related to margin accounts. Specifically, regulators expect to see a dramatic increase in complaints about the suitability of such accounts. Margin accounts are suitable for a scant few; for most investors, they are unsuitable. In any turbulent market, losses in those accounts, due to forced liquidations, for example, can cause great financial damage.
State securities regulators are warning that the current financial climate is likely to lead to a surge in investment scams related to coronavirus. The North American Securities Administrators Association (“NASAA”) warned that scammers will try to take advantage of the fear and uncertainty in the financial market resulting from the coronavirus pandemic.
This is the second in a series which highlights an InvestmentNews article concerning the recent uptick in the sale of unregistered securities and how those transactions have resulted in the proliferation of fraudulent schemes.
The North American Securities Administrators Association (NASAA) has developed a model rule outlining policies that investment advisers should have in place to respond to natural disasters or the death or incapacitation of an executive.
The North American Securities Administrators Association has developed a model rule outlining policies that investment advisers should have in place to respond to natural disasters or the death or incapacitation of an executive.
