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FINRA chief warns industry to weed out high-risk brokers

Finra CEO Robert Cook said advisory firms must take steps to cull high-risk brokers from their businesses by “reviewing their hiring practices, monitoring their brokers, improving supervisory systems and investigating red flags suggestive of misconduct,” among other means, Financial Planning reports. Cook’s remarks were made in a recent speech at Georgetown University’s business school. Finra set up a high-risk oversight program in 2014 and has barred about 120 brokers since then, according to the publication. See the full story below. Also, in a podcast at InvestmentNews, reporter Mark Schoeff Jr. interviews Joshua Aron Lichtenstein, a senior ERISA attorney at Ropes & Gray LLP, about the implementation of the Department of Labor’s fiduciary rule and what to watch for in the coming months. See the link below.


FINRA chief warns industry to weed out high-risk brokers

By Kenneth Corbin

Source: Financial Planning

FINRA CEO Robert Cook is warning brokerage firms to step up their screening processes and keep their firms free of bad actors and unscrupulous business practices. In a speech at Georgetown University’s business school on Monday, Cook touted FINRA’s efforts to prioritize scrutiny of high-risk brokers, hinting more policy changes to that end could come.



DOL fiduciary: The battle is just beginning

Source: InvestmentNews

Joshua Aron Lichtenstein is an associate at Ropes & Gray LLP where he specializes in ERISA law. In addition, he represents some of the best-known asset managers in the country. In this episode of Fiduciary Focus, InvestmentNews senior reporter Mark Schoeff Jr. asks him about the how life changes now that the Labor Department’s controversial fiduciary rule has gone into effect and what’s the next step as the rule marches steadily toward the next phase of its implementation.


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