Department of Labor Implements New Fiduciary Rule

By Kevin Shea On April 6, 2016, the Department of Labor rolled out the new “fiduciary rule” which will heighten brokers’ standard of care when making investment recommendations in their clients’ retirement accounts. It’s no secret that Americans are depending more and more on their IRAs and 401(k)s to support themselves in retirement. It’s also [&hellip

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Does Your Broker Have an Outside Business? Think Twice Before Investing

By Andre Raikhelson “Selling Away” occurs when a broker solicits a customer for an investment that is outside of the typical transactions that a broker conducts as an employee of his brokerage firm. This can be problematic because a broker who is pushing an outside business activity, especially one that he is personally affiliated with, [&hellip

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Don’t Allow Scam Artists to Use the Zika Virus to Infect Your Investment Strategy

By Jonathan Erbe Historically scam artists have attempted to exploit the public’s concern toward health and societal predicaments. Fraudulent companies and scam artists take advantage of ill-informed investors who fail to catch the red flags of investment fraud. More recently, it is important for investors to protect themselves from investment scams seeking to profit from [&hellip

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Online Conveniences Can Lead to Heartbreak

By Gabriela Centofanti Technology has made it possible for investors to access their brokerage accounts anywhere. These conveniences allow investors to monitor their money and further contemplate their investments outside of their broker’s office while waiting at an airport terminal or sitting on a couch. But lurking in the background are possible email hacks, Wi-Fi [&hellip

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Securities-Backed Line of Credit: Is it Right for You?

By Kyle Butz and Ashley Morales It is easy to see why a security-backed line of credit (“SBLOC”) would appeal to people that need money fast. SBLOCs use assets held in one’s brokerage account as collateral and allow the investor to borrow money in the form of a line of credit. Firms market these loans [&hellip

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FINRA’s Best Practice Tips for Keeping Your Personal Financial Information Safe

By Janelly Crespo In today’s age and with the help of modern technology, identity thieves can easily obtain an individual’s personal information. Whether thieves use keystroke-logging software to capture usernames and passwords or send phony emails requesting personal financial information that a brokerage firm would never request through an email, there are numerous ways for [&hellip

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FINRA’s Helpline for Seniors Leads to FINRA Investor Alert, Warning Against Ads for “High-Yield CDs”

By Brendan Studley Last summer, our blog featured a post on FINRA’s new Helpline for Seniors. As some unsavory brokers continue to develop new ways to victimize investors, the helpline aims to protect the public by providing a welcoming and open resource for callers get to the bottom of any questions or concerns. In February [&hellip

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Investor Rights Clinic Weighs In On Proposed Rules Regarding the Financial Exploitation of Seniors

By Neda Ghomeshi On November 30, 2015, the Investor Rights Clinic (IRC) submitted a comment letter to FINRA in regard to Regulatory Notice 15-37. The Regulatory Notice sought comments on proposed rules to address the financial exploitation of seniors and other vulnerable adults. The notice proposed amendments to Rule 4512, Customer Account Information, which would [&hellip

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Do you have a Transfer on Death Plan for Your Brokerage Assets?

By Chelsea Healey Estate planning can be difficult for many people simply because it requires a person to contemplate their own mortality. When people begin the estate planning process, they mainly create wills or trusts, name their life insurance beneficiaries, and sign advanced medical directives. As such, individual brokerage account assets are often overlooked in [&hellip

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The New Pump-and-Dump: Same Scam, Different Technology

By Dillon McColgan On September 2, 2015, the Financial Industry Regulatory Authority (FINRA) issued an Investor Alert to warn investors of the new approach fraudsters are using to conduct a classic market manipulation scam — the pump-and-dump. Essentially, a pump-and-dump scam involves the relentless promotion of a particular stock to create an artificial interest, which [&hellip

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