Have you ever thought about how online stock trading works? Once you hit enter on an order to buy or sell a stock, what happens next? There might be more steps in the stock trade process than you realize.
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The FINRA Entitlement Program provides a secure way to access participating Web-based systems with a shared entitlement service.
FINRA has seen a recent significant spike in investor complaints resulting from recommendations made by fraudulent “investment groups” promoted through social media channels. Complaints describe bad actors, posing as registered investment advisers, who advertise “stock investment groups” on Instagram and other social media channels and then turn to encrypted group chats on WhatsApp to communicate with interested investors and pitch investments.
Bitcoin is a peer-to-peer payment system that uses its own currency, called bitcoin, to transact business around the world. Bitcoins are not issued by banks or governments—indeed, the bitcoin platform was designed to offer an alternative to national currencies, like the dollar, and commodity-based currencies such as gold or silver coins.
In conjunction with World Investor Week 2024, the SEC’s Office of Investor Education and Advocacy (OIEA), FINRA and other industry regulators are issuing this Investor Bulletin to provide investors with information about the ways in which emerging technologies like AI and crypto assets, and digital platforms like social media and mobile trading apps, are increasingly influencing how people invest.
Suitability obligations are critical to ensuring investor protection and promoting fair dealings with customers and ethical sales practices. FINRA Rule 2111 governs general suitability obligations, while certain securities are covered under other rules that may contain additional requirements.
FINRA Rule 2111 requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable for the customer. This is based on the information obtained through reasonable diligence of the firm or associated person to ascertain the customer’s investment profile.
The rule states that the customer’s investment profile “includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs [and] risk tolerance,” among other information. A broker’s “recommendation,” which is based on the facts and circumstances of a particular case, is the triggering event for application of the rule.
Brokers must have a firm understanding of both the product and the customer, according to Rule 2111. The lack of such an understanding itself violates the suitability rule.
Before you accept that first post-retirement paycheck, make sure you understand exactly how working after retirement may impact alter your Social Security, pension benefits and other retirement income.
Certified Regulatory and Compliance Professional (CRCP) designees are required to complete 12 hours of continuing education (CE) every three years as of their certificate anniversary award date. Now, you can choose your CRCP CE credits from a wide variety of convenient educational formats, including FINRA developed conferences, e-learning and classroom learning courses, online workshops and webcasts.
