Brokerages May Be Getting More Tools to Protect Older Clients

En español | A securities industry group recently proposed changes to how brokers and their firms handle accounts in an effort to protect older consumers and vulnerable clients against fraud. Investment firms have been increasingly concerned about the financial exploitation of older clients, particularly those who might suffer from dementia or other cognitive impairment. But many firms say they’re limited by regulations governing just how much they can intervene. Currently, regulations require firms to protect a client’s privacy, so firms …

Securities Arbitration Is Flawed, Investor Group Claims

Investors who bring disputes involving suspected broker misconduct, unsuitable investment advice and other complaints to arbitration may not be getting a fair resolution because the pool of arbitrators lacks diversity, according to a report released Tuesday by a group that represents claimants. Most of the arbitrators who serve the Financial Industry Regulatory Authority (FINRA), the self-regulator for the brokerage industry, are men who have a “socioeconomic status that put them out of touch with the average investor,” said the report …

The Latest Buzzkill: Marijuana Stock Scams

Promised incredibly (ahem) “high” returns by investing in medical marijuana stocks? It’s a (groan) pipe dream – and those touting big money can be made from medicinal toking are likely scammers, warns the Financial Industry Regulatory Authority (FINRA). With medical marijuana now legal in 20 states and the District of Columbia – and its recreational use recently decriminalized in Colorado and Washington state – the timing is especially ripe for such investment ripoffs. “The cannabis business has been getting a …