FINRA has made a recent policy change regarding information on its BrokerCheck system and will allow the public to access bulk data on firms, reports WealthManagement.com. FINRA’s president and CEO Robert Cook, addressing the U.S. House subcommittee on Capital Markets, said: “Over time, collectively we’re realizing there’s potential opportunity in having them be able to see patterns in their firm.” Read the full story below. Also, in a column at InvestmentNews, Marcia S. Wagner, managing partner of The Wagner Law Group, explains several types of defenses available to advisors if a client alleges breach of fiduciary duty. “Advisers need to be aware of all possible defenses available to them, even those that might not be recognized under the Employee Retirement Income Security Act of 1974,” Wagner writes. See the link to her column below.
FINRA to Provide Access to Bulk Data on Firms
By Diana Britton
The Financial Industry Regulatory Authority (FINRA) has made high-risk brokers a top priority, announcing new proposals that would strengthen controls and require broker/dealers to heighten supervision of potential bad apples. FINRA’s BrokerCheck system allows the public to view an individual broker’s regulatory history. But what about firms that employ a significant number of brokers with bad histories?
Fiduciary liability defenses for advisers under ERISA
By Marcia S. Wagner
If an investment adviser makes a recommendation to a retirement plan sponsor or investment manager, who then follows that recommendation and later challenges it as a breach of fiduciary duty, there are several types of defenses available to the adviser.