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Auction Rate Securities: The Conservative’s Conservative?

For over 25 years, Auction Rate Securities (ARS) products were considered safe and sound investments. Then, everything changed in 2008 when investment banks stopped purchasing ARS products at the beginning of the Great Recession. The pause in ARS purchases caused an overall market freeze that snowballed into a massive influx of investor complaints against brokers who were making investment recommendations …

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The Other Costs of Having FINRA U4 Disclosures on Your BrokerCheck

Losing potential business due to customer complaints on your BrokerCheck report is bad enough, but it isn’t the only cost of having FINRA U4 disclosures on your CRD.   Today, most clients search online before setting up an initial meeting with a financial advisor. I’ve heard people say, “You don’t go to lunch in a new part of town without …

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FINRA’s Focus on Advisors With Customer Disputes

We’ve known for some time that FINRA ranks their brokers based upon negative disclosures on their Form U4 and CRD.  However, that information has never been released to the public en masse due to instances where many non-adjudicated claims have never actually proven a sales-practice violation by the advisor.   A firm that represents customers in drumming up these investor complaints, …