The SEC recently approved new FINRA rules designed to protect seniors from financial elder abuse. Beginning February 2018 brokerage firms will be allowed to place a temporary hold on a disbursement of funds or securities when the firm has a reasonable belief of potential financial exploitation. Firms also will be required to take reasonable efforts to include the name and contact information for a trusted contact person on a customer’s account. Purpose of the FINRA Rule...
The Securities and Exchange Commission ("SEC") recently announced it had imposed monetary penalties on thirteen investment advisory firms. The SEC concluded the thirteen firms failed to conduct due diligence to determine the veracity of false claims made by an investment management firm before the firms began recommending the investment to their own clients. The enforcement action concerned claims made by F-Squared Investments ("F-Squared"). F-Squared claimed its "AlphaSector" strategy for investing in exchange-traded funds ("ETF") had outperformed...
The Financial Industry Regulatory Authority (“FINRA”) has received a number of complaints from individuals – particularly seniors – defrauded through “boiler room” style cold calls. According to FINRA, consumers receive unsolicited cold calls from individuals who claim to work for legitimate organizations that offer stock recommendations. The callers use high-pressure tactics to urge consumers to buy penny stocks or other speculative investments. But the calls are scams. The purported organizations often are not registered with...