On Tuesday, the House passed a bill for legislation that aims to help financial professionals reduce elder fraud by providing them safe harbor if the fraud is reported to state or Federal regulatory and law enforcement entities. The House passed the vote by voice on Tuesday. The bill specifically provides that banks, credit unions, investment advisers, broker-dealers and insurance companies and certain supervisory, compliance and legal employees would be protected from civil or administrative liability as long as these employees received training in how to spot and report predatory activity and disclose any possible exploitation of senior citizens to state or Federal regulatory law enforcement. The bill was introduced last year by Senator Susan Collins (R-Maine), and Senator Claire McCaskill (D-Missouri). They are the chairman and ranking minority member, respectively, of the Senate Special Committee on Aging. It is based on legislation enacted in Maine. The bill has the support of the National Association of Insurance and Financial Advisers (NAIFA), the Insured Retirement Institute (IRI), SIFMA and the North American Securities Administrator Association (NASAA). A 2011 study by MetLife found that seniors lose an estimated $2.9 billion each year to financial fraud.
Did you lose money with Raymond Louis Thomas with Farmers Financial Solutions? If so, the lawyers of Stoltmann Law Offices may be able to help you recover those losses on a contingency fee basis in the Financial Industry Regulatory Authority (FINRA) arbitration claims forum. Please call 312-332-4200 to speak to an attorney for free to discuss your options. There is no obligation.
According to his Letter of Acceptance, Waiver and Consent (AWC), Thomas, while registered with Farmers, sold insurance products issued by an Insurance affiliate. Between January 2014 and October 2014, allegedly Thomas wrote 20 renter’s insurance policies that were fictitious. By doing so, he caused the Insurance affiliate to pay $24,529 in subsidy payments to Thomas that would not have been paid but for the issuance of the fictitious policies. This is against securities rules and regulations. He was barred from the industry. Thomas was registered with Farmers in Oklahoma City, Oklahoma from August 2013 until February 2015.
The United States government is making sure regulatory agencies such as the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) are keeping pace with the US Equity markets, which are vastly and quickly changing due to the effects of technological innovation on market structure. Technology changes have always been first and foremost on regulators’ minds. During a senate banking hearing last week, the SEC relayed that it had stepped up its pace considerably in the way of technological innovation. Ever since May 6th, 2010, when trillions of dollars were quickly wiped out because of faulty algorithms, the market has changed significantly in order to rebound from algorithm-driven spoofing. Nowadays, according to numbers compiled by RBC Capital Markets and cited at the banking hearing, today’s fee schedules represent a highly fragmented market structure and many exchange business models are trying to counter some of the trends emphasized in that report.
When it comes to equities, there are many types of liquidity qualities in the stock market, depending on common trade flow metrics, including the needs of clients, the underlying securities and other variables, that when combined, result in the need for an equally high number of diverse trading choices for participants. Along with that, there are nearly 133 different order types across US market venues. These different trading needs of high and low-frequency trading operations brought about the growth of Alternative Trading Systems (ATS) and dark pools, yet got away from traditional systems such as National Market Systems (NMS). The SEC wants to test a ban for six months on eliminating rebates for a number of securities and participants, to study the effect it will have on the market.
During the Senate hearing last Thursday, under the committee on Banking, Housing and Urban Affairs, through its subcommittee on Securities, Insurance and Investments, a meeting titled “Regulatory Reforms to Improve Equity Market Structure” was held. The discussions covered topics such as defining Consolidated Audit Trail (CAT) market maker models, advisor misconduct and other areas of concern. The SEC also proposed a rule that would aim to amend the Securities Exchange Act of 1934, among other things.