On October 26, 2017, the SEC issued three critical no-action letters all in response to the upcoming MiFID II compliance date of January 3, 2018. Under MiFID II and its related Delegated Directive, firms will no longer be allowed to bundle research payments with execution costs (soft dollars) unless specific MiFID II Research Payment Accounts (“RPA”) are utilized that separate the two costs for tracking and compliance purposes.
This European Commission directive has raised concerns…
Founder and President Amy Lynch commented on a recent FINRA regulatory notice detailing a proposed amendment to its arbitration rules. The amendment is intended to help customers of broker-dealers with unpaid arbitration awards. Ms. Lynch states that while it provides more options for the customer, it doesn’t necessarily help solve the unpaid arbitration problem. She says that customers could face additional challenges in the court system and if a rep or its firm is out…
Consultants to pension funds often bring with them potential conflicts of interest where their advisory business and asset management business co-exist. Amy Lynch, Founder and President, discusses that conflicts of interest are commonplace in the consultant-pension relationship, and regulatory concerns arise from this situation. Ms. Lynch stresses that the onus is on the client to raise the issue with the consultant and then take steps to mitigate potential conflicts while conducting proper due diligence. See …
Founder and President Amy Lynch discusses the latest regulatory enforcement trend bearing down on broker-dealers selling variable annuity products. Ms Lynch, a former head of the SEC”s variable insurance products inspection unit, sees the uptick in enforcement actions resulting from new, popular annuity products being offered, as well as a renewed focus by FINRA on VA exchanges. Ms. Lynch recommends firms increase monitoring of the products and the risks they pose to investors. See InvestmentNews…
