Recent posts

OCIE’s 2016 Share Class Initiative

The SEC's Office of Compliance Inspections and Examinations (“OCIE”) is undertaking an initiative to address the risk that registered advisers may be making certain conflicted investment recommendations to their clients. Specifically, OCIE is seeking to identify conflicts of interest tied to advisers’ compensation or financial incentives for recommending mutual fund and 529 Plan share classes that have substantial loads or...
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FINRA Sanctions a Broker-Dealer $2.9 Million for Unsuitable Sales of Non-Traditional ETFs and Related Supervisory Failures

FINRA announced that it has fined a broker-dealer (BD) $2.25 million and ordered the firm to pay restitution of more than $716,000 to affected customers for selling leveraged, inverse and inverse-leveraged exchange-traded funds (non-traditional ETFs) to retail customers without reasonable supervision, and for recommending non-traditional ETFs that were not suitable. In August 2009, in response to...
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