Enforcement actions by the SEC continued at a strong pace, rising 20% in the first half of FY 2017, according to Cornerstone Research. Details are reported in an article at ThinkAdvisor, below. Also, there are times when an advisor’s departure from a firm is the result of compliance attitudes and approaches. In a column at ThinkAdvisor, Jonathan Henschen describes various circumstances in which compliance officers and managers can drive away talent — such as treating experienced advisors with clean records like they are newly licensed. Read the full column below.
SEC Actions Against BDs Jump 20%: Cornerstone Research
By Melanie Waddell
Enforcement actions levied against brokers by the Securities and Exchange Commission jumped 20% in the first half of 2017’s fiscal year, according to Cornerstone Research. Actions related to issuer reporting and disclosure jumped 34% while actions involving securities offerings also increased by the same percent, according to Cornerstone’s proprietary research, SEC Enforcement Activity—First Half FY 2017 Update.
Compliance Approaches That Chase Away Advisor Talent
By Jonathan Henschen, President, Henschen & Associates
Several months ago, I took my wife’s car out on an errand and noticed the front driver side panel protruding out at the seam. I didn’t notice any dents or scratches so I simply pressed the panel back in place. Investigating further, taking a walk around the front of the car and then to the passenger side, I saw scratches and a large dent. It turned out that our teenage daughter had driven into a mailbox as she swerved the car off the road reaching down to the floor to grab a CD to play. There was no mention of the incident until we brought it up, as is so often the case with teenagers, who are at a phase of life where rational thought and responsibility are in short supply.