A Stockbroker’s Introduction to FINRA Examinations and Investigations

Brokers and financial advisors oftentimes do not understand what their responsibilities and obligations are and what may result from a Financial Industry Regulatory Authority (FINRA) examination or investigation. Many brokers do not even know the role that FINRA plays within the industry. This may be due to the fact that FINRA, a self-regulatory organization, is not a government entity and cannot sentence financial professionals to jail time for violation of industry rules and regulations. Nevertheless, all broker-dealers doing business with members of the public must register with FINRA. As registered members, broker-dealers, and the brokers working for them, have agreed to abide by industry rules and regulations, which include FINRA rules.

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Report On Elder Financial Abuse-An Epidemic

According to “The Met life Study of Elder Financial Abuse: Crimes of Occasion, Desperation, and Predation Against Americas Elders,” older Americans are losing $2.9 billion annually to Elder financial abuse. The insurance company study published recently found that over 50% of the reported cases of Elder financial abuse were committed by strangers such as stockbrokers, financial advisors, investment advisors, precious metal brokers and other high pressure quick- rich scheme promoters. Unfortunately, the balance of these crimes were committed by the Elders own family members, friends and neighbors. In those cases involving a person known to the victim, the perpetrator through a relationship of trust and confidence gained access to the victim’s financial information and accounts and seized upon the opportunity to control stock and bank accounts, forge checks and/or letters of authorization transferring funds and other assets to wipe out the Elder person’s life savings.

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