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- 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
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NEWSLETTERS & ALERTS
Profiling Brokers Who Might Prey on Senior Investors
by Howard Haykin
As a compliance officer, which broker do you think would most likely try and exploit his or her elderly broker-dealer customer? Which broker would be least likely?
1) Broker A with 22 years’ experience with 14 firms.
2) Broker B with 42 years’ experience with 4 firms.
3) Broker C with 8 years’ experience with 13 firms.
4) Broker D with 28 years’ experience with 6 firms.
5) All the above.
The answer is (5) ‘All the above'.
No broker has too much experience or too little experience to try and exploit an elderly customer. Based on the below sample of 17 recent FINRA disciplinary actions, brokers whom FINRA charged with exploiting one or more of their elderly customers had, on average, 22 years’ experience with 7 firms.
The take away? Compliance officers should use caution when relying on age or experience level, along with job turnover, as factors for gauging whether a particular broker is more or less likely to try and exploit one of the firm’s elder customers. All in all, that’s a relatively sobering thought!
The 17 Sampled Cases
1) FINRA Case #2017052709201 (December) – Broker had 12 years with 5 firms
2) FINRA Case #2015046537501 (December) – Broker had 22 years with 14 firms
3) FINRA Case #2015046329201 (December) – Broker had 32 years with 5 firms
4) FINRA Case #2014043043601 (December) – Broker had 10 years with 11 firms
5) FINRA Case #2016049316301 (December) – Broker had 32 years with 8 firms
6) FINRA Case #2015047910601 (January) – Broker had 42 years with 4 firms
7) FINRA Case #2013039507101 (January) – Broker had 33 years with 5 firms
8) FINRA Case #2015048048801 (January) – Broker had 29 years with 12 firms
9) FINRA Case #2015047602801 (February) – Broker had 8 years with 13 firms
10) FINRA Case #2017054665401 (February) – Broker had 1 year with 2 firms
11) FINRA Case #2018057246701 (April) – Broker had 9 years with 2 firms
12) FINRA Case #2017056152801 (April) – Broker had 31 years with 6 firms
13) FINRA Case #2015045703002 (April) – Broker had 24 years with 5 firms
14) FINRA Case #2015046052701 (April) – Broker had 25 years with 6 firms
15) FINRA Case #2015045984001 (May) – Broker had 28 years with 6 firms
16) FINRA Case #2016047619001 (May) – Broker had 20 years with 11 firms
17) FINRA Case #2015047602803 (May) – Broker had 16 years with 3 firms
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The above cases were reported in recent FINRA Disciplinary Actions (see noted month).
To view the AWC Letter, -up, go to ... FINRA Disciplinary Actions Online, and enter the Respective Case Number.