Considering Hiring a New Investment Adviser?

Earlier this week, The Wall Street Journal reported that while the four major Wall Street brokerage firms experienced an outflow of $8 billion of assets in 2008, Registered Investment Advisers brought in more than $108 billion in new assets during the same period. This activity likely reflects a shift in investor preference from transaction-based broker relationships to fiduciary relationships.

Investors generally choose to have their financial affairs handled by someone they feel they can trust. Given the financial meltdown that has taken place over the last 2+ years, it is easy to see why investors would prefer to have a fiduciary manage their investments rather than a brokerage firm that has unavoidable conflicts of interest with their clients.

If you are considering hiring an investment adviser, another Wall Street Journal article also set out some questions that investors should ask financial advisers. Every adviser-client relationship is based upon different goals, and, as a result, each investor should ask different questions when interviewing a financial adviser. However, if you are looking for a list of standard questions, this is a good place to start.

It is important to know as much as you can about your financial adviser, stockbroker, etc. You can also find information about stockbrokers by checking FINRA’s BrokerCheck website and research registered investment advisers through the SEC’s Investment Adviser Public Disclosure (IAPD) website.

The Kueser Law Firm represents investors in securities arbitration and litigation. If you are concerned that your investments have been mismanaged, please contact us to learn more about your rights.

Share

SEC permanently changes rules related to “naked” short selling

In a much anticipated move, the Securities and Exchange Commission (SEC) made permanent a rule that it hopes will curb abusive “naked” short selling practices in the securities markets.

Short selling is the practice of selling a security that a person does not own. In essence, the person (the “short seller”) “borrows” the security from their broker (or another third party) and sells it to a buyer. This strategy is implemented where the short seller anticipates that the value of the security will drop. As the value of the security goes down, the short seller makes money. Conversely, if the value of the security increases, the short seller loses money. At some point in the future, the short seller will purchase an amount of shares equal to the amount borrowed. This is referred to as “covering” the short position. Often the short seller has to pay a fee to borrow the securities and has to pay interest on the value of the securities until the short position is covered.

The new rule (Rule 204T) requires broker-dealers to promptly purchase or borrow securities to deliver on a short sale. In addition, the SEC is working with self-regulatory organizations to make public information related to short sale volume. Lastly, the SEC is planning to hold a public roundtable on September 30 to discuss securities lending, pre-borrowing, and possible additional short sale disclosures. According to the SEC’s press release, “the roundtable will consider, among other topics, the potential impact of a program requiring short sellers to pre-borrow their securities, possibly on a pilot basis, and adding a short sale indicator to the tapes to which transactions are reported for exchange-listed securities.”

Share

Maintained by The Kueser Law Firm

The Kueser Law Firm | Securities Arbitration Attorney | Securities Arbitration Lawyer | Missouri Securities Arbitration Lawyer | Kansas Securities Arbitration Attorney

Social Media – Follow The Kueser Law Firm

DISCLAIMER

The choice of an attorney is an important one and should not be based solely upon advertisements such as this website. Past results afford no guarantee of future results. Every case is different and must be judged on its own merits.

*Any information submitted via this website may not be secure and/or confidential. Merely contacting this firm does not establish an attorney-client relationship.

Contact The Kueser Law Firm

Mailing Address:
P.O. Box 612
Lee's Summit, Missouri 64063
Phone: 816.374.5865
E-mail: Click Here
CONTACT FORM
Your Name (required)

Your Email (required)

Phone Number (optional)

Subject

Your Message:

To eliminate spam, please type the following code in the line below and press the Send button:
captcha

RSS News – Securities Fraud

RSS SEC – Press Releases

  • SEC Halts Pyramid Scheme Targeting Dominican and Brazilian Immigrants
    The Securities and Exchange Commission today announced that on Tuesday it filed charges against the Massachusetts-based operators of a large pyramid scheme that mainly targeted Dominican and Brazilian immigrants in the U.S.  The charges were filed under seal, in connection with the Commission’s request for an immediate asset freeze.  That asset freeze, which […]
  • SEC Proposes Rules for Security-Based Swap Dealers and Major Security-Based Swap Participants
    The Securities and Exchange Commission voted yesterday to propose new rules for security-based swap dealers and major security-based swap market participants.  The proposed rules cover recordkeeping, reporting, and notification requirements for security-based swap dealers and major security-based swap participants and would establish additional recordkeeping […]
  • SEC Charges Former BP Employee with Insider Trading During the Deepwater Horizon Oil Spill
    The Securities and Exchange Commission today charged a former 20-year employee of BP p.l.c. and a senior responder during the 2010 Deepwater Horizon oil spill with insider trading in BP securities based on confidential information about the magnitude of the disaster.  The price of BP securities fell significantly after the April 20, 2010 explosion on the Dee […]
  • SEC Charges San Diego-Based Investment Adviser
    The Securities and Exchange Commission today announced charges against a San Diego-based investment advisory firm, its chief executive officer, chief compliance officer, and another employee for misleading investors and breaching their fiduciary duties to clients. The SEC’s Enforcement Division alleges that Total Wealth Management and its owner and CEO Jacob […]
  • SEC Names David Gottesman as Deputy Chief Litigation Counsel
    The Securities and Exchange Commission today announced the appointment of David J. Gottesman as deputy chief litigation counsel in the Division of Enforcement. Mr. Gottesman joined the SEC in 2004 and was promoted to a supervisory role in the trial unit in 2011, where he has litigated cases involving financial and accounting fraud, insider trading, market ma […]