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Widely Recognized Wealth Management Executive Alex David to lend expertise to Boardcomprised of industry leaders SANTA FE, N.M., April 23, 2024 /PRNewswire/ — Essential Edge Compliance Outsourcing Services, LLC (Essential Edge), which provides third-party compliance services for broker-dealers and registered investment advisers (RIAs), has appointed wealth management industry leader Alex David to its Advisory Board. Mr. David currently serves as Division…

The state securities agency is trying to shut down two entities falsely claiming to be wealth management firms operating out of the same building as the agency itself. Colorado Securities Commissioner Tung Chan issued separate orders against two “imposter” firms last week, the state department of regulatory agencies’ division of securities said.  Joyce Dunbar Management…

‘Last year saw bigger Finra fines per case,’ a lawyer says. ‘Supersized fines, or those of $1 million or more, were up, and mega-sized fines, or those of $5 million and more, increased too.’ The Financial Industry Regulatory Authority Inc. went back to carrying a big stick last year as the fines it imposed on…

‘The large size of such fines underscores the point that regulators want this behavior to change quickly,’ a compliance executive notes. LPL Financial Holdings Inc. appears to be on the hook for a $50 million settlement and penalty from the Securities and Exchange Commission over compliance failures in keeping records of financial advisors’ and employees’…

Board of highly accomplished industry leaders will provide expertise and guidance to fast-growing compliance outsourcing firm SANTA FE, N.M., Feb. 16, 2024 /PRNewswire/ — Essential Edge Compliance Outsourcing Services LLC (Essential Edge), which provides third-party compliance services for broker-dealers and registered investment advisers (RIAs), announces the appointment of five highly regarded and experienced wealth management industry executives to…

Text messaging issues at broker-dealers and RIAs could have been avoided with some regulatory guidance, compliance expert says. Leading independent broker-dealers Cambridge Investment Research Inc. Northwestern Mutual Investment Services and Lincoln Financial Advisors Corp. were among 16 wealth management firms that agreed to pay $81 million collectively to settle charges related to the Securities and Exchange Commission’s…

Some compliance experts took issue with a recent Michael Kitces podcast that appeared to endorse a marketing strategy that includes soliciting and reposting clients’ Google reviews. A recent interview on a popular podcast for advisors has sparked a debate over the use of Google reviews in light of the new Securities Exchange Commission rules allowing client testimonials. The most recent episode of…

Brokers have been wondering whether they’re complying correctly with the standard of conduct. Enforcement cases this year may shed more light than ever before Ever since Regulation Best Interest went into force, financial advisors have been waiting to see how it would change the oversight of investment advice. They may get more insight this year.…

‘Financial advisors don’t understand bitcoin,’ one senior executive notes. ‘It’s a disaster waiting to happen.’ Now that buying and selling bitcoin has evolved to encompass exchange-traded funds that invest in the digital asset, broker-dealers will inevitably ponder the Shakespearian question about a bitcoin ETF: to sell or not to sell? On Wednesday, the Securities and…

‘Who were the accountants? Lending securities can be lucrative,’ a compliance executive says. Fast-growing technology platforms that specialize in whiz-bang online trading at times fall short of securities industry rules. The most notable recent example was Robinhood, the mobile brokerage app and brokerage that agreed in 2021 to pay a total of $70 million in fines and restitution to…