FINRA's 2015 Regulatory and Examinations Priorities
Letter provides guidance regarding areas of focus in the
"Sales Practice" for this year.
Previously, we discussed the various sales products that FINRA
will be monitoring this year; and
yesterday,
Josh Horn discussed FINRA's recently adopted Supervision
Rules that affect the Sales Practice. This blog entry will discuss
FINRA's focus on firms' controls regarding "Wealth
Events", particularly Individual Retirement Account (IRA)
Rollovers.
FINRA is concerned with the long term impact of brokers'
recommendations when approached by an investor that is faced with a
decision about what to do with a large amount of money arising from
an inheritance, life insurance payout, sale of a business or other
major asset, divorce settlement, or an IRA rollover, among other
"Wealth Events". FINRA plans to closely monitor
firms' controls for compliance, supervision, suitability, and
disclosures regarding these "Wealth Events" in
