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Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells
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Investigating Stock Brokers, Investment Advisers and Financial Planners by Rob Wells

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Rob Wells presents "Investigating Stock Brokers, Investment Advisers and Financial Planners" during the Fall 2013 Society of American Business Editors and Writers Conference in New York, Oct. 4, …

Rob Wells presents "Investigating Stock Brokers, Investment Advisers and Financial Planners" during the Fall 2013 Society of American Business Editors and Writers Conference in New York, Oct. 4, 2013.

Wells is a lecturer at the Philip Merrill College of Journalism at the University of Maryland and a former Reynolds Visiting Professor in Business Journalism at the University of South Carolina.

For more information on training for business journalists, please visit http://businessjournalism.org.

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  • 1. Title Slide Inves&ga&ng     Stock  Brokers,   Investment  Advisers   &  Financial  Planners  
  • 2. Wells   Rob   Adjunct  Faculty,  University  of  Maryland,  Philip   Merrill  College  of  Journalism.     Ph.D.  student     Reynolds  VisiBng  Professor  of  Business   Journalism,  University  of  South  Carolina,   Columbia.       Former  Deputy  Bureau  Chief,  Dow  Jones/Wall   Street  Journal,  Washington,  D.C.     Reporter  for  Dow  Jones,  Bloomberg,   The  Associated  Press  
  • 3. What  You  Will  Learn:   •  Find  penalBes,  employment  histories  of   financial  professionals  using  free   databases.     •  Review  how  the  SEC,  states  and  industry   groups  do  and  don’t  police  Wall  Street;   access  to  their  invesBgaBons.     •  Find  “red  flags,”  such  as  “10b5”  fraud   and  unsuitable    investment    cases.  
  • 4. Research  Brokers,  Advisers FINRA  BrokerCheck     -­‐-­‐Records  on  1.3  million  current  and  former  professionals,  17,400  firms.       SEC’s  Investment  Adviser  Public  Disclosure  (IAPD)   -­‐-­‐441,000  professionals,  45,700  firms     Cer&fied  Financial  Planner  Board  of  Standards  Inc.  (CFP)   -­‐-­‐69,000  professionals     Free  Portals  to  research  your  stories.   Use  any  computer  with  Internet  access.   No  special  soware  or  database  knowledge  needed.  
  • 5. FINRA  BrokerCheck FINRA  (Financial  Industry  Regulatory  Authority):    Industry   group  that  licenses  and  polices  stock  brokers.     Data  derived  from  CRD:  Central  RegistraBon  Depository.   -­‐-­‐Launched  1981     FINRA:  An  SRO.  Works  with  and  is  overseen  by  SecuriBes   and  Exchange  Commission  
  • 6. First  Screen
  • 7. Star&ng  Your  Search Having  a  CRD  number  speeds  your  search.   CRDs  available  on  complaints,  arbitraBon   records   Click  for  person  
  • 8. Get  Full  Name,  Middle  Ini&al,  Etc.   Get  Full  Name  of  Your  Broker.  Thousands   of  people  in  database,  may  take  Bme  to   find  right  person.  Filter  with  Zip  Code  
  • 9. Robot  
  • 10. Your  Turn   hOp://www.finra.org/Investors/ ToolsCalculators/BrokerCheck/  
  • 11. Search:  “Bernard  Madoff”   hOp://www.finra.org/Investors/ ToolsCalculators/BrokerCheck/   Photo  by  Flickr  user  Petezin  
  • 12. The  document    
  • 13. For  Firms:   • Overview  of  the  firm,  and  ownership   • History,  including  any  mergers  or  name  changes   • Summary  of  firm’s  operaBons,  list  of  fines,  regulatory  acBons,   arbitraBon  awards     For  Individuals:   • Broker  credenBals,  current  registraBons,  licenses  and  exams   • Employment  history  for  the  past  10  years   • Any  customer  disputes  or  regulatory  events  on  the  broker’s   record.   Key  Items  on  CRD*  Reports   *Central  RegistraBon  Depository;  each  broker  and  firm  has  a  CRD  number.  
  • 14. Employment  History  
  • 15. Summary  of  Regulatory  Ac&ons,  Status  
  • 16. Details  of  Ac&on   Get  to  source  material  
  • 17. Details  of  Ac&on   Get  source  material  
  • 18. Backgrounding     Source:  The  Washington  Post  
  • 19. Contact  Former  Co-­‐Workers:  Work  History  
  • 20. •  Unsuitable  Investments     •  Churning     •  10b5     •  Breach  of  Fiduciary  Duty    Photo  by  Flickr  user  Victoria  Reay   Red  Flags  
  • 21. Use  BrokerCheck   to  Cover  PoliBcs   Your  Turn  
  • 22. Search:   “Jon   Corzine”   hOp://www.finra.org/Investors/ToolsCalculators/ BrokerCheck/   Photo  by  Flickr  user  Paul  Lowry  
  • 23. Terms  –  Jargon  Buster   hOp://www.finra.org/web/groups/industry/@ip/@comp/@regis/documents/ appsupportdocs/p116979.pdf    
  • 24. Ques&ons  about  BrokerCheck?     • Nancy  Condon  –  202-­‐728-­‐8379  –  nancy.condon@finra.org     • George  Smaragdis  –  202-­‐728-­‐8988  –   george.smaragdis@finra.org     • Michelle  Ong  –  202-­‐728-­‐8464  –  michelle.ong@finra.org  
  • 25. Investment  Adviser  Public  Disclosure   hnp://www.adviserinfo.sec.gov/IAPD/Content/IapdMain/iapd_SiteMap.aspx    
  • 26. Who  Regulates  Advisers?   Dodd-­‐Frank  Act:  Boosts  states'  role  in  regulaBng  advisers     •  States  regulate  advisers  handling  between  $25  million   and  $100  million  of  assets  under  management.     •  SEC  oversees  handling  assets  of  $110  million     •  Both  can  be  found  in  Investment  Adviser  Public   Disclosure  database.   hnp://www.adviserinfo.sec.gov/IAPD/Content/IapdMain/iapd_SiteMap.aspx    
  • 27. Form  ADV   Main  Disclosure  Form  for  Investment  Advisers     • Part  1:  Summary  of  adviser's  business,   complaints  from  customers.       • Part  2:  Brochure  to  clients  ,  details  adviser’s   business  pracBces,  fees,  conflicts  of  interest,  and   disciplinary  informaBon
  • 28. Red  Flags   •  ArbitraBon  cases.  What   happened?       •  Employment  history.  RegistraBon   gaps;  where  were  they?     •  Brokers  can  peBBon  to  remove   arbitraBon  cases.       Photo  by  Flickr  user  Victoria  Reay  
  • 29.   Ques&ons  about  Investment   Adviser  Public  Disclosure?     SEC  Office  of  Investor  EducaBon  and  Advocacy   1-­‐800  SEC-­‐0330  
  • 30.  State  securi&es  regulators   North  American  SecuriBes  Administrators  AssociaBon     •  Always  worth  checking  with  state  regulators     •  Great  way  to  monitor  local  and  naBonal  trends  
  • 31. State  Enforcement   hnp://www.nasaa.org/regulatory-­‐acBvity/enforcement-­‐legal-­‐acBvity/enforcement-­‐directory/    
  • 32. A1  NYT  story   on  LPL   Financial  -­‐-­‐   Uses  state   regulators  as   sources   hnp://nyB.ms/14PiIdR  
  • 33. Cer&fied  Financial  Planners   •  CFP  ®  designaBon   •  Must  pass  series  of  exams   •  Subject  to  oversight  of  CerBfied  Financial   Planners  Board   •  Investor  complaints  can  lead  to  CerBfied   Financial  Planner  revocaBon  
  • 34. CFP  Board  website  lists  revoked  planners  by  state   hnp://www.cfp.net/about-­‐cfp-­‐board/ethics-­‐enforcement/disciplined-­‐individuals-­‐by-­‐state    
  • 35. Search  for  a  Cer&fied  Financial  Planner     hnp://www.cfp.net/uBlity/verify-­‐an-­‐individual-­‐s-­‐cfp-­‐cerBficaBon-­‐and-­‐background  
  • 36. Example  of  Disciplinary  Record  
  • 37. CFPs  and  `Anonymous  Case  Histories’   Can  Be  Linked  to  Public  Sanc&ons  
  • 38. Check  Disciplined  CFPs  in   NY,  NJ,  CT     hnp://www.cfp.net/about-­‐cfp-­‐board/ethics-­‐ enforcement/disciplined-­‐individuals-­‐by-­‐state     Your  Turn  
  • 39.   Ques&ons  about  Cer&fied   Financial  Planners?     Dan  Drummond    202-­‐550-­‐4372     ddrummond@cfpboard.org  
  • 40. Rob  Wells     University  of  Maryland,     Philip  Merrill  College  of  Journalism     robwells@umd.edu   Ques&ons?   Photo  by  Flickr  user  Xurble  

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