Monday, October 14, 2013

Finra Chairman and CEO releases Statement on "Conflicts of Interest" Report

Today, CEO Richard G. Ketchum released a statement on The "Conflicts of Interest" Report issued by October 2013.  In part it read:
Today, FINRA published a report on conflicts of interest in the broker-dealer industry to highlight effective conflicts management practices that may go beyond current regulatory requirements and identify potential problem areas. In July 2012, FINRA initiated a dialogue with several large firms to review their conflicts management practices to better understand how the industry identifies and manages conflicts.
The report, which weighs in a a hefty 44 pages with footnotes and citations, covers the general conflicts of interest as well as get in depth on where brokers should what out, and are "obligated" to determine if there is a conflict of interest.  Of particular interest was a section on "New Business and New Products Conflicts Review" where brokers should determine if new financial products are a conflict at inception.

To read the entire Finra Report, Click Here.

The Team

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