FINRA, the Regulatory Authority for Brokers and Brokerage Firms Issues Its 2012 Watch List
Financial Industry Regulatory Authority (FINRA) on Tuesday, released its 2012 regulatory and examination “watch list,” which provides a laundry list of products the regulator will be zeroing in on.
Why should you, as an investor, care? If FINRA is watching these investment products, it usually means Brokers and Brokerage Firms are Pushing these products on you, the consumer, and they feel it might not be suitable and not be in your best interest.
Remember, Brokers and So-Called Advisors, a broker with a “title”, sell investments their firms represent, manufacture and market to you. Brokers do not have a legal obligation to work in your best interest, plain and simple. Take their advice and recommendations with a grain of SALT! The recommendations they give, are often what makes the broker the biggest commission, not what’s best for your portfolio!
Among the products that top FINRA’s watch list for suitability issues include: residential mortgage-backed securities and commercial mortgage-backed securities, non-traded REITs, municipal securities, complex exchange-traded products, variable annuities, structured products, private placements and life settlements.
FINRA also warned that it would be zeroing in on broker fees and had a heightened focus on branch office inspections.
If FINRA is Concerned, YOU the Investor should be concerned too… Remember, it’s Your Money!
Against this backdrop, FINRA is specifically concerned with:
Residential Mortgage-Backed Securities and Commercial Mortgage-Backed Securities 1. Non-Traded REITs 2. Municipal Securities 3. Complex Exchange-Traded Products 4. Variable Annuities 5. Structured Products 6. Securities Offered Through Private Placements: 7. Unregistered Securities Acquired in Secondary Markets 8. Church Bonds 9. Promissory Notes 10. Life Settlements
I have spoken and warned about many of these investments on my Radio Show many times over.
It’s good to see that a major regulator also publicizes the same risks & warnings that I have been speaking of for years!
I will be conducting an in-depth discussion on this Sunday’s Radio Show, about what concerns I have with each of the aforementioned investments, the Risks associated with them, and what concerns YOU should have too…