FINRA’S SUITABILITY RULE AND UNINTENDED CONSEQUENCES

The history of securities arbitration, a creation of the brokerage industry, is also a story of unintended consequences.  One of those unintended consequences is known as the Suitability Rule, the cornerstone of customer consumer protection in securities arbitration. The story began in the 1930′s when, following the Great Depression, Congress passed the Securities and Exchange Read more about FINRA’S SUITABILITY RULE AND UNINTENDED CONSEQUENCES[…]

IS INVESTING IN BONDS A SAFE INVESTMENT?

The assumption that bonds are a uniformly “safe” investment is not always true. Some bonds are unrated and must be evaluated by your financial advisor and broker. Many unrated bonds are underwritten by brokerage houses and sold to their customers. Typically the prospectus is complex, lengthy, and presented in dense legalese. Only your stock broker Read more about IS INVESTING IN BONDS A SAFE INVESTMENT?[…]

FINANCIAL ADVISORS CONFUSE FINANCIAL PRODUCTS WITH LEGAL TERMS

The latest wrinkle of marketing financial products are “Free Seminars”. The focus is on long term care, protection of assets, retirement planning and estate planning. The primary threat is that the cost of long term care in a nursing home can consume your entire life savings. You need a package of financial and legal products. Read more about FINANCIAL ADVISORS CONFUSE FINANCIAL PRODUCTS WITH LEGAL TERMS[…]

Another Bond Nightmare – The Lakeside 370 Levee District Bonds & Stifel Nicolaus

Just west of St. Louis in the flood plain of the Missouri River is the City of St. Peters in St. Charles County, Missouri. In what should have remained flood plain the City built a levee for a retail and office development. In 2008 the City’s Levee District, for the purpose of improving the levee, Read more about Another Bond Nightmare – The Lakeside 370 Levee District Bonds & Stifel Nicolaus[…]