NEW CHANGES - Say Good Bye SEC Reporting

[Gracious1]

From what I have read, FINRA is not doing a very good job of compliance overseeing their existing RIA base. virtually every week I read in Financial Advisor of another RIA going to jail for stealing hundreds of thousands or millions from their clients. FINRA should not be given any power over insurance agents. We are not recommending complex and risk of principle loss securities. We are tightly regulated by the insurance companies compiance departments and the State insurance bureaus. Any more regulation would Is duplicity and a trojan horse for the banks and wall street firms to have complete power and more fees for their propped up investment firms. Bring back Glass Steigel

 

[iceco1d]

#1 - FINRA does not have oversight of any RIAs, and never has.

#2 - Most of the advisors you see running Ponzi schemes are unlicensed, and would do what they do regardless of their regulatory body.

#3 - FIAs are generally considered "complex" products.

#4 - Anything with a surrender charge that doesn't carry a Return of Premium guarantee, has the potential for principle loss.

#5 - Insurance agents are not "tightly regulated" in any sense of the word (which is great).

#6 - Speaking of Wall Street firms, have you ever seen the Allianz building in Manhattan? Talk about $$$. Those living in glass houses shouldn't be throwing stones. Speaking of "glass" ...

#7 - It's "Glass Steagall."

 

[budfox7]

Hey Maks, here's a good reason to not be securities licensed to sell FIAs...

THEY AREN'T SECURITIES!!!

See my other post on this subject. You could construct a FIA where interest crediting is tied to the results of a Roulette wheel. Principal plus a GMIR would be able to be guaranteed. Interest would be credited depending on whether your color (or number, etc.) comes up.

So by your logic, someone doing that should have to have a dealers license in Vegas?

I have a better idea. I think that any rep that cannot explain why a FIA should NOT require a securities license, should be barred from selling them. How about them apples?

Really ? I dont understand why you have to be that way. You see this is where insurance agents think that brokers are all wrong and were securities guys think's that insurance is for schmucks.

I am from the wires but I have left it to be more predominatly a comprehensive finanicial advisor. I do not use VA's any more however. My post was stating that Finra want's to take over.

DO YOU THINK FINRA GIVES A #$&($ of what your definition of a what a security is ? Even if you are write , you're opinion is just a little one compared to the mammoth FINRA and the dollars they receive. Do you know that even if EIA is not a security, FINRA doesnt care, all registered reps have to show their 1099's to make sure we are writting away from the BD.

I am simply here to gather information, on why or if I should start my own RIA> because I would like to use the FMO;s of my choice.

The point is not to insult someones intelect but rather see the problem we are up against. And help each manuaver and pivot our way into a solution. I am telling you FINRA doesnt care on what a security is or isnt' they will eventually have reg reps abide by their managing supervisor.

With that being said I need information on opening an RIA or who to go with , that why I can market the way I am comfortable with and use the products and fmos I jive with.....Maybe that question/statement is for another thread! But jeez stop the bashing!!

 

[DHK]

If I were looking to start up my own RIA:

RIA IN A BOX: Investment Adviser registration and compliance services
- Both to establish and perform a mock audit.

RIA Brokerage Services | Registered Investment Advisor Tools | RIA Trading Platform | TradePMR Brokerage and Custody Services
- See Frederick's posts on this forum.

Helping Advisors Build Great Businesses™ | Genworth Financial Wealth Management, Inc.
- I happen to like their 'open-architecture' of asset-management.


The reason to be "RIA-only" is so you can separate your business activities, rather than having everything you do become subject to a FINRA investigation or your OSJ's "failure to supervise". Your RIA entity simply is another business that has no ramifications on your insurance business. And the reverse (of course) is also true.


You could also find an RIA to be an IAR (representing their RIA versus your own). You may have to sign a contract of some kind. Just make sure you aren't signing your life away on it.

 

[Norwayguy]

From what I have read, FINRA is not doing a very good job of compliance overseeing their existing RIA base. virtually every week I read in Financial Advisor of another RIA going to jail for stealing hundreds of thousands or millions from their clients. FINRA should not be given any power over insurance agents. We are not recommending complex and risk of principle loss securities. We are tightly regulated by the insurance companies compiance departments and the State insurance bureaus. Any more regulation would Is duplicity and a trojan horse for the banks and wall street firms to have complete power and more fees for their propped up investment firms. Bring back Glass Steigel

You sir do not know what you speak of. RIAs are regulated by either the SEC or by thier states office of securities. I wonder if you have ever sold an annuity with an mva which stands for (market value adjustment). And if you think an insurance companies compliance dept and state DOI are highly regulating you then you have never been under FINRA OR it's predessesor the NASD.

Having said the above I think most of the FINRA regulation is used not to protect people but to make money for FINRA and that our more loosely regulating DOIs do a good job.

Something most people forget is FINRA has NO LAW ENFORCEMENT POWERS they are an SRO and can bar you from thier regulation and fine you but they have no power to collect the fine beyond withholding your FINRA registration.

 

[iceco1d]

Really ? I dont understand why you have to be that way. You see this is where insurance agents think that brokers are all wrong and were securities guys think's that insurance is for schmucks.

I am from the wires but I have left it to be more predominatly a comprehensive finanicial advisor. I do not use VA's any more however. My post was stating that Finra want's to take over.

DO YOU THINK FINRA GIVES A #$&($ of what your definition of a what a security is ? Even if you are write , you're opinion is just a little one compared to the mammoth FINRA and the dollars they receive. Do you know that even if EIA is not a security, FINRA doesnt care, all registered reps have to show their 1099's to make sure we are writting away from the BD.

I am simply here to gather information, on why or if I should start my own RIA> because I would like to use the FMO;s of my choice.

The point is not to insult someones intelect but rather see the problem we are up against. And help each manuaver and pivot our way into a solution. I am telling you FINRA doesnt care on what a security is or isnt' they will eventually have reg reps abide by their managing supervisor.

With that being said I need information on opening an RIA or who to go with , that why I can market the way I am comfortable with and use the products and fmos I jive with.....Maybe that question/statement is for another thread! But jeez stop the bashing!!

I'm not even going to comment on most of this.

I did double check with my compliance department, and this "RRs can't write direct with an FMO anymore" and "showing FINRA your 1099s" is complete bullshit.

 

[DHK]

That may be true.

But all OBA's (including writing with an FMO) must be disclosed (and subsequently approved) by your compliance department.

Each B/D may be more or less stringent in this area.

 

[Norwayguy]

I'm not even going to comment on most of this.

I did double check with my compliance department, and this "RRs can't write direct with an FMO anymore" and "showing FINRA your 1099s" is complete bullshit.

I was a branch at my last B/D I did not need to show my 1099s but I did need to show 6 months of my banking statements which I think is worse.

 

[xrac]

I was a branch at my last B/D I did not need to show my 1099s but I did need to show 6 months of my banking statements which I think is worse.

This is happening because FINRA wants all of the money going through a BD so eventually they can get their hands on some of it. FINRA is all about money and power it has nothing to do with making things better for the client.

 

[Norwayguy]

This is happening because FINRA wants all of the money going through a BD so eventually they can get their hands on some of it. Finra is all about money and power it has noting to do with making things better for the client.

QFT (message filler)......