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News from SEC’s Senior Summit

The SEC reported at its 2nd Annual Senior Summit that it was working on codifying suitability rules as they apply to recommendations for the purchase of securities by stock brokers, and further clarifying sales practice principals for investment professionals.  If properly crafted, additional guidance in these areas should help prevent abuse of investors as well as provide additional tools for attorneys representing investors who have been abused by their stock brokers.

The SEC, FINRA, and state regulators also reported the results of their “free lunch” sweep of seminars targeted as seniors.  The findings included 59% of the brokerage firms involved failing to properly supervise the seminars, and 23% of the seminars including advice that was unsuitably risky for senior investors.

InvestmentNews article.

FINRA Investor Alert.

Posted by Greco & Greco on 09/21 at 02:31 PM
FINRASECState RegulatorsSuitability

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