Broker- Dealer Law Corner

Broker- Dealer Law Corner

Category Archives: Suitability

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Good Grief! MetLife Agrees To $20 Million Fine, And Another $5 Million In Restitution! For Negligence!

Posted in annuities, Disciplinary Process, Enforcement, FINRA, Suitability, Supervision
FINRA announced today that it entered into a settlement with MetLife Securities, Inc. in which MetLife agreed to pay FINRA a $20 million fine and its customers up to $5 million in compensation for, basically, making misrepresentations over a five-year period to customers who replaced one variable annuity with another regarding the costs of making… Continue Reading

FINRA’s 2016 Examination Priorities Letter: Focus On “Firm Culture”

Posted in Compliance, Expungement, FINRA, Senior Investors, Suitability, Supervision
Yesterday, FINRA released its annual Examination Priorities Letter in which it set forth the top issues that would guide its examinations in the coming year. Running 13 pages in length (while complaining about having to be so “brief”), FINRA set forth some of the “many areas of potential concern” it expects to encounter this year.… Continue Reading

Day Two of FINRA’s Annual Conference

Posted in Enforcement, Examination, FINRA, Registered Representative, Rule 2111, Senior Investors, Suitability, Supervision
I wish I was able to report some fireworks, or something semi-controversial, but FINRA and its hand-picked panelists managed to avoid saying anything particularly remarkable in any way. If you have never attended one of these conferences, and think that people come to learn cutting edge strategies, forget it. It is all very basic, very… Continue Reading

Why are Senior Investors so Special? (Part 1)

Posted in Enforcement, FINRA, Rule 2111, SEC, Suitability
Over the last few months and years, securities regulators have repeatedly emphasized the special care and attention senior investors[1] should be afforded by broker-dealers and their associated persons. As part of that focus, on April 15, 2015, FINRA and the SEC Staff published their National Senior Investor Initiative Report. The report highlighted recent industry trends… Continue Reading
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