Variable Life Insurance: The Devil is in the Details

By Jack Korte For most investors, the goals of their investments change with time. As investors age they often seek to secure their financial future for retirement, while also providing and protecting an inheritance for their loved ones. As such, traditional, equity based investing often becomes less appealing. As a result, investors tend to look [&hellip

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Counter-suing Investors Jeopardizes Integrity of Arbitral Forum

By Neda Ghomeshi Investors take their cases to arbitration before the Financial Industry Regulatory Authority, (FINRA), as they are typically required to in any dispute with their broker or brokerage firm. Often, investors sue their brokerage firms for suitability, fraud, negligence, breach of fiduciary duty, failure to supervise, among many other causes of action. Recently, [&hellip

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Securities and Exchange Commission Files Suit Against Jupiter Based Penny Stock Fraudsters

By George Pita On September 30, 2014, The Securities and Exchange Commission (“SEC”) filed a civil injunctive action against Positron Corporation (“Positron), a microcap company based in Illinois, Patrick G. Rooney, the company’s then-CEO, and John R. Rooney of Jupiter, Florida. The SEC charged the three with masterminding a manipulation scheme involving the company’s stock. [&hellip

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Top Executives Involved in Financial Fraud Cases Are Still Innocent Until Proven Guilty … For Now

By Claudio Arruda “The scars of the Great Recession, its lingering impacts and its echoes throughout our financial system are not hard to find.” These words, spoken by then Attorney General, Eric Holder, to an auditorium filled with judges, U.S. Attorneys, law students, faculty members, administrators, staff and alumni at the New York University School of [&hellip

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Are You Being Offered an Opportunity to Invest in a Small Company with Tremendous Growth Potential? Ask Yourself, “Why Me?”

By Craig Tompkins In 2012, the Jumpstart Our Business Startups (JOBS) Act was passed by Congress with the goal of expanding the potential pool of investors from which small businesses can raise capital. While the final rules governing how this new game will be played are still pending, what is known, is that the average [&hellip

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Elements of Portfolio Management: Recognizing Potential Unsuitability Claims

By David Newfield The most common claim customers make against their brokers in FINRA arbitrations are unsuitability claims. Under FINRA Rule 2111, a broker has a duty to make sure any recommended transaction is suitable for the customer. Many factors contribute to an assessment of suitability for a portfolio. FINRA issued guidance on the specifics [&hellip

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Proposed FINRA Rule Change to Shift Professionals without Ties to Securities Industry into “Non-public” Arbitrator Pool

By Sunny Desai In a proposed FINRA rule change, persons who worked in the financial industry for any duration during their careers would always be classified as non-public arbitrators, as well as persons who represent investors or the financial industry as a significant part of their business. This would mean removing certain attorneys, accountants, and [&hellip

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Municipal Advisors Face Increased Regulation Under Dodd-Frank

By Nathaniel Touboul The financial crisis of 2008 led regulators to the realization that municipalities needed a system that protects their own interests when dealing with Wall Street. To achieve this goal, the Dodd-Frank Act, among other things, created a new class of regulated persons called “Municipal Advisors” (MAs). Under new regulations, MAs may not provide [&hellip

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Press Releases and the Dangers of Insider Trading

By Edel Gonzalez Illegal insider trading has undermined the trust that investors have in the securities market for many years. It cripples public confidence in the market and hinders growth for investors and companies. In response, the Securities and Exchange Commission (SEC) has strengthened its commitment of investigating and prosecuting insider trading. The SEC has [&hellip

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The SEC’s Bad Actor Rule: Citigroup Restricted from Selling Hedge-Funds to Private Clients

By Rachael Williams In July 2013, the Securities and Exchange Commission (SEC) adopted the “Bad Actor” rule. This rule prevents companies and individuals with a “criminal conviction, regulatory or court order or other disqualifying event” from participating in private offerings and selling investments in hedge-funds or private-equity funds to clients. The rule is part of [&hellip

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