Nowadays, online trading has become a preferred method for many investors. From casual, at-home investors to more seasoned investors, online trading provides an accessible and efficient platform for securities trading.
While online trading has grown in popularity, there are still some common misconceptions about it. You may have heard someone telling you that online trading is not secure or that you don’t have access to actionable investment advice with these platforms.
This is untrue.
We’ve all seen bad actors in movies and T.V., but did you know that bad actors can be found on Wall Street and other financial industry institutions? The Financial Industry Regulatory Authority (FINRA) recently released a statement outlining the need for checks-and-balances against bad actors.
FINRA defines a bad actor as one within the financial industry “who seeks to evade regulatory requirements and harm investors for their own personal gain”. Essentially, they’re con artists; fraudsters.
A 2016 study by the Tax Policy Center comparing Trump’s then-stated plan and the current tax ratesOne of the big platforms that boosted Trump to the Oval Office was his promise to let business operate unencumbered. Throughout his campaign, he promised a hands-off approach to business, including wide-scale financial deregulation as well as considerable corporate tax cuts.
In fact, Wall Street was riding high post-election on sheer optimism. Financial and industrial stocks soared, reaching record peaks, in anticipation of the big regulatory rollback that was sure to follow.
For businesses, too, hopes were high. The Trump administration promised huge tax cuts for businesses and corporations.
This week, a U.S. appeals court elected not to reinstate President Trump’s controversial travel ban. The decision by the appeals court moves the debate closer to the Supreme Court, as the issue gets more contentious.
The order called for a restriction on travel for people from six countries with a majority Muslim population. It caused a great amount of fervor when it was rolled out in January, due to it’s hap-hazard execution as well as its seemingly discriminatory language.
If you’ve been following the story, you know that it caused outrage and mass confusion at many U.S. airports as visa-holders from these countries were detained or denied entrance into the country. The poor roll-out was the initial reason for a judge in Hawaii to strike it down.
We all remember that nastiness about Wells Fargo, right? You know, that little PR debacle where it turned out that, due to unrealistic sales initiatives, Wells Fargo employees initiated accounts fraud against millions of consumers.
After the story broke, Wells Fargo lost a major vote of consumer confidence. The following weeks saw many customers closing accounts and executives getting raked over the coals, culminating in the resignation of the CEO and a large scale termination of employees who had participated in accounts fraud.
Finally, it seemed the dust had settled. The banking giant was ordered to pay out $190 million in federal fines and reparations to affected consumers. The bank also promised a change to corporate culture and initiatives, announcing an end to aggressive sales goals.
When Britain announced its decision to formally leave the European Union (EU), it raised a lot of uncertainty. While the decision caused global unsettling, probably the most anxious was the international investment banking community.
Until now, Britain, specifically London, has been the undisputed epicenter of investment banking, next to Wall Street. In fact most top-tier U.S. investment banks housed their international headquarters in London. Now, as Britain enters into formal exit discussions, these banks are beginning to look elsewhere.
In the internet age, cyber crime has become one of the top platforms for investment fraud and financial crimes. Many investors have begun making online investments instead of using traditional investment platforms. With this, comes the need to educate and inform about fraud targeting online investments.
The Securities and Exchange Commission has published an investor bulletin outlining helpful tips and resources to protect your online investments from fraud.
The investment world is pretty cut-and-dry; either you win, or you lose. Not much can be said for losing, after all, it’s part of the game. Usually when you lose out on an investment, it’s due to the fact that you didn’t account for certain risks. However, there are some instances beyond investors’ control that might derail an otherwise sound investment. These instances give rise to understandable investor complaints.
Investor complaints pertain to how a transaction was executed. Whether it’s against a broker, investment advisor, transfer agent, or an entire brokerage firm, investor complaints focus on how an investment transaction is handled.
Below are the most frequently recurring investor complaints as reported by the SEC’s Office of Investor Education and Advocacy (OIEA).
A recent New York Times article spotlights a renewed approach and increased legislative response to financial elder abuse. Featured in the article are personal accounts of real people whose family members and close friends have been affected by elder financial abuse.
Investment fraud and financial abuse directed towards seniors and the elderly has been a rising concern. We recently featured an issue focusing on the problem of increased elder financial abuse. Most elder abuse is perpetrated against those between the ages of 80-90, suffering from degenerative diseases such as Alzheimer’s.
Now, the issue is getting legislative attention. According to the Times article, 33 states have considered the issue of specific laws directed at financial abuse against the elderly. Other states are revisiting their existing laws.
Last week, the Securities and Exchange Commission (SEC) amended standing rules regarding broker-dealer securities transaction settlement cycles. The new rules shorten the amount of time between when an investment transaction is placed and when it is actually processed.
Previously, the transaction settlement cycle was set as “T+3”. This refers to the time, in days, that lapse before a transaction is settled. For instance, if you buy or sell a security on Monday, Thursday would be the day the transaction is settled.
The SEC has set the new settlement cycle to “T+2”, meaning only two days bass between transaction and settlement. This change is set to take effect for all transactions on or following September 5, 2017.
Securities Fraud Lawyers Blog