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‘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…

First Major Gathering Of Wealth Management Compliance Professionals Since Pandemic, Plus WSR’s Latest Compliance & Regulatory Trends Survey When general industry participants think of wealth management compliance – which is, in effect, only when they must – they tend to envision a very old school, plodding, static field, characterized by unchanging attitudes and older professionals.…

A California court granted the agency’s motion to dismiss a lawsuit from a law firm that wanted clarification as to whether digital assets can be considered securities. A judge has dismissed a case filed by a cryptocurrency law firm against the Securities and ExchangeCommission, according to a ruling California’s Southern District Court filed on Friday.…

In An Age Of Regulatory Harmonization, Financial Advisors Face New Pressures To Weigh Pros And Cons Of Life Settlements For Clients Life settlements might be making a comeback.  Commonly defined as the sale to a third-party investor of an existing life insurance policy for more than its cash surrender value but less than the net…