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SEC Exam priorities include fee scrutiny

Managing Team

Regulatory/Compliance

The SEC’s examination priorities for 2018 include a focus on the fees retail investors pay to advisors, according to WealthManagement.com. The regulator notes that “the proper disclosure and calculation of fees, expenses, and other charges investors pay is critically important.” Other exam priorities involve cybersecurity, wrap fee programs, robo advisors, mutual and exchange traded funds, and cryptocurrencies. See more details below. Also, Finra is proposing rule changes that would require Finra members or firms seeking membership to demonstrate they have the assets to pay for pending arbitration claims of a firm or individual they bring on board, reports Financial Advisor. “Finra is concerned about new members onboarding principals and registered representatives with pending arbitration claims without the firm having to demonstrate how those claims would be paid if they go to award,” the organization said. Comments on the proposal will be taken until April 9.

Fee Transparency on SEC’s 2018 Hit List

By Diana Britton

Source: WealthManagement.com

The Securities and Exchange Commission released its examination priorities for 2018. In it, the regulator says its examiners will pay closer attention to the fees that retail investors are paying to advisors as well as the disclosure and calculation of those fees. “Every dollar an investor pays in fees and expenses is a dollar not invested for his or her benefit,” the SEC said. “Therefore, the proper disclosure and calculation of fees, expenses, and other charges investors pay is critically important.”

http://www.wealthmanagement.com/regulation-compliance/fee-transparency-sec-s-2018-hit-list

Finra Tightens Screws On Firms Hiring Brokers With Pending Arbitration

By Tracey Longo

Source: Financial Advisor

Firms and registered reps with pending arbitration awards will find it much tougher to jump to another firm in order to duck payment under rules changes being proposed by Finra. For the first time, firms seeking either new or continuing Finra membership would need to be able to demonstrate that they have the assets to pay pending arbitration claims of any firm or individual they bring on board, according to Finra’s proposal. Interested parties have until April 9 to comment on the proposal.

https://www.fa-mag.com/news/finra-tightens-screws-on-firms-hiring-brokers-with-pending-arbitration-37078.html