Post by cxgllc on Apr 12, 2019 21:30:32 GMT 10
Broker-dealers are affiliated with the Financial Industry Regulatory Authority (FINRA), a self-regulating organization that regulates registered brokers and their firms.5 FINRA offers its BrokerCheck resource to help the public vet potential advisors; investors can look up a specific broker or firm and see their employment history and status, whether any customer complaints have been filed against them, and the current disposition of those complaints.6
FINRA’s code of conduct dictates that any member or firm “..in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade,” nor shall any member “…effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.”7 8
FINRA enforces this standard through suspensions, fines, and permanent bans on certain brokers who violate its rules, as well as overseeing securities arbitration claims from investors.
While some rules, such as suitability, are well-defined, the tenets of fiduciary duty can be more ambiguous. This is something that may look to become a little clearer.
RIA Compliance| Financial Services Compliance
FINRA’s code of conduct dictates that any member or firm “..in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade,” nor shall any member “…effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.”7 8
FINRA enforces this standard through suspensions, fines, and permanent bans on certain brokers who violate its rules, as well as overseeing securities arbitration claims from investors.
While some rules, such as suitability, are well-defined, the tenets of fiduciary duty can be more ambiguous. This is something that may look to become a little clearer.
RIA Compliance| Financial Services Compliance