BROWSE BY TOPIC
- Regulatory Sanctions
- Investments - Unsuitable
- Investor Protection
- Investments - Private
- Rules & Regulations
- Investments - Strategies
- Bad Advisors
- Bad Brokers
- Boiler Rooms
- Wall Street News
- Terminations/Cost Cutting
- Compliance Concepts
- General News
- Donald Trump & Co.
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
My Broker Just Wired $512,00 from My Account to Some Unknown Bank Accounts
[Image: Paper Dollar Airplane / Nerdwallet.com]
by Howard Haykin
To do so, the broker falsely advised his sales assistant that he had received verbal confirmation from the customer for the wires - and the sales assistant entered that false information onto the firm’s wire request attestation forms. To fund the wire transfer requests, the broker executed sales of securities without the customer’s knowledge or authorization. After the customer complained about the unauthorized transactions, UBS Financial Services reimbursed the customer and terminated the broker.
KNOW YOUR CUSTOMER. In financial services, ‘Know Your Customer’, or ‘KYC’, is an anti-money laundering (AML) requirement that professionals - e.g., banking and brokerage - make the effort to verify the identity of the client when opening an account and periodically thereafter. In other words, banks and brokerage firms, and other financial institutions, must make sure their clients are genuinely who they claim to be. The objective of KYC guidelines is to prevent businesses from being used, intentionally or unintentionally, by criminal elements for money laundering. Related procedures also enable businesses to better understand their customers and their financial dealings – thereby managing their risks in a well-judged manner. [Wikipedia]
KNOW YOUR BROKER. Just as broker-dealers have safeguards to ensure against fake and fraudulent customers, so should customers have safeguards against negligent and witless actions by their brokers. For example, you’d be comforted in knowing that your broker would be sensible enough to …
- Not accept an email as the sole basis for any wire request – let alone one for half a million dollars.
- Have on file your correct bank account numbers, which would be matched to any withdrawal requests.
- Reach out to you without hesitation, regarding a question - any question.
- Understand the inherent risks associated with any/all internet communications.
[For further details, click on … FINRA Case #2018060504601.]