Fines Triple As FINRA Focuses On Suitability
March 29, 2016 by Juliette Fairley
Fines imposed on the financial services industry more than tripled last year to $18.3 million from $5.6 million in 2015, according to FINRA Suitability Sanctions Statistics.
The increase in penalty fees has some advisors blaming the Department of Labor’s looming fiduciary standard, although two cases were responsible for a large percentage of the total.
“Suitability is becoming an issue now because the Department of Labor is rumored to be implementing severe restrictions on people’s retirement accounts,” said John C. Lindsey, certified financial planner with Lindsey and Lindsey Wealth Management in Westlake Village, California. “Advisors in the lower echelon have been putting people into investments that are inappropriate for their age group.” Click HERE to view article
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