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ARTICLE · 30 MARCH 2016

FINRA Reports On Digital Investment Advice

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On March 15, the Financial Industry Regulatory Authority (commonly referred to as "FINRA") issued a Report that emphasizes that offerings of digital investment advice requires sound governance and supervision...

United StatesFinance and Banking
Edward G. Eisert
Edward G. Eisert
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On March 15, the Financial Industry Regulatory Authority (commonly referred to as "FINRA") issued a Report that emphasizes that offerings of digital investment advice requires sound governance and supervision, including effective means of overseeing the suitability of recommendations, conflicts of interest, customer risk profiles and portfolio rebalancing.  The Report also outlines lessons for investors and states that training and education are crucial for financial professionals who use digital investment advice tools.  FINRA is the regulatory authority that is responsible, under the supervision of the U.S. Securities and Exchange Commission, for the oversight of broker-dealers.

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