Spencer Bachus's amazing turnabout from RIA villain to white knight and the miserable state of Dodd Frank's advancement of fiduciary care
Once presumed to be in FINRA's back pocket, the Alabama congressman co-sponsors H.R. 1627 -- a huge boon to SEC oversight of RIAs
Now, if only there was a better system to stop potential fraud, i.e., protect investors, from broker/dealers, their registered representatives, and wirehouse dual registrants.
From what I’ve read over the past 10 months, FINRA is a joke. FINRA says their job is to protect the investor, but they appear to do a better job of protecting the broker/dealer and its registered representatives.
After reading and reading and reading about the financial services industry, I’ve developed the following analogy:
1. FINRA = nations who stand by and do nothing about Putin
2. Wirehouses (including but not limited to Merrill Lynch/BOA, Morgan Stanley, Raymond James, UBS, Wells Fargo) = Putin
3. Wirehouse registered reps (stockbrokers) = Pro-Russian separatists
very cute Teresa, there are three things the SEC could do administratively to protect investors:
1. Declare that any firm exercising discretion over a client’s assets must use an independant third party custodian, that means that Morgan Stanley would have to hire someone else for example. The custodian could not be connected with the firm with discretion in any way. If Madoff had been force to use a third party he could not have comitted the fraud
2. Remove the hypothecation right in client margin agreements. Becuase firm;s hold assets does not mean they should be able to use them as they will to make money for themselves. The lack of hypothecation would reduce the desire to create products with low transparency and high costs like non traded reits.
3. Require every brokerage statement contain cost basis, commissions, mark up and market downs, internal fees, 12b1 fees and all other investor costs and performance calculated net of all fees. If investors knew all the costs they pay they would run away from the non fiducaries.
Biz Briefs: AdvicePay waives key hiring requirement to land its next CEO • ESG firms may get OK in Oklahoma • eMoney adds new chiefs • CFP Board names new chair-elect • Robinhood cuts more staff
Alan Moore replaces himself with another guy with two respectable titles • eMoney promotes two • Moisand's third in line now known • Robinhood sacks 173 in year-to-date.
July 26, 2023 at 2:34 AM
Biz Briefs: Vanguard's tax-loss harvest yields a caveat• Vermont green with envy ... of red states? • CFP Board spends $12 million on bungee metaphor • BlackRock isn't neutral on Credit Suisse • Women are the Goliath of 'David' in UK finance
Tax-loss harvest gains may have some home assembly required, says Jeff DeMaso • Adrian Johnstone is now in the driving seat at Practifi • CFP Board spending just topped $150 million • and Vermont shares some Texas thinking on ESG investing.
March 25, 2023 at 1:32 AM
Charles 'Chuck Schwab' called James Gorman to protest a two-broker poach, kicking off a hydra-headed legal battle, costing Morgan Stanley millions, so far
The Schwab founder and chairman invoked Charles Schwab Corp.'s zero-tolerance policy against Wall Street -- or RIA -- poaching of talent and AUM from Schwab branches.
March 9, 2023 at 1:23 AM
The CFP Board's RIA faction sees the 100,000-member mark looming and hits back at brokerwashing; Dan Moisand is tasked with forming new division largely aimed at abusive brokers and other charlatans
Moisand, an RIA owner who has been named the new board chairman, will seek to quell an RIA uprising without losing a giant revenue source -- FINRA brokers who come with implicit 'suitability' issues
March 7, 2023 at 12:24 AM
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