Why FINRA’s New Rules on “Suitability” Are Important for Investors

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FINRA, the regulatory organization that governs broker-dealers, has now implemented a major overhaul of its suitability rules that could have a big impact on investors who feel that they were misled by their stock broker. The new rules went into effect on July 9th and require brokers to (1) perform reasonable due diligence on investment… Read more »

Idaho Investment Advisor Matthew Hutcheson Indicted

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Matthew Hutcheson is an Idaho-based investment advisor and recognized authority on fiduciary standards. He has testified before U.S. Department of labor in 2008 in support of increasing disclosure requirements for advisors to improve the observance of fiduciary standards. In 2010 he testified before congress on the need to increase regulatory standards to improve fiduciary conduct…. Read more »

UPDATE: Lessons to be Learned from Jeffrey Mowen

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Here is an update on this story from the Salt Lake Tribune. There is another moral to this story that is evident in these prosecutions, and that is you need to be careful who you solicit money on behalf of, and its better not to do it at all. If you are not licensed to… Read more »

How Do Ponzi Schemes Get Started?

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The Financial Times recently published a fascinating prison interview with Bernie Madoff. Of course he spins the story, attempts to justify his actions and it wasn’t really his fault. He claims that his company was legitimately earning profits until the early 1990, and that in the 1980’s he was “making plenty of legitimate trades.” But… Read more »