Tim O'Connor's Blog

Brokerage Firms Abandon Small IRA Account Customers With the Emergence of the Fiduciary Rule – An Accident Waiting To Happen?

The recently enacted Fiduciary Rule requires that brokerage firms managing the accounts of IRA customers are required to adhere to a prudent man/prudent investor investing guidelines in order to project IRA accounts from unnecessary losses due to stock market volatility, downturns and risky investments.  These initiatives, in turn, have seen brokerage firms require that all […]

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FINRA Releases Regulatory Notice Warning Member Firms of Volatility-Linked Exchange-Traded Products

In Regulatory Notice 17-32 , FINRA recently articulated the grave risks to investors regarding the sale of Exchange Traded Products.  Typically, these products are linked by tracking short and mid-term VIX future indexes – a very risky and volatile investment and surely not a safe investment for the average investor.   Exchange Traded Products have resulted in […]

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Wells Fargo Fined by FINRA for VIX Linked Exchange Traded Products

The Financial Industry Regulatory Authority (FINRA) has fined Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC $3.4 Million as required restitution relative to unsuitable recommendations involving volatility-linked Exchange Traded Products (ETP’s) and related supervisory failures related to these investments.   Volatility-linked ETP’s are very complex products, ill-designed for the average investor and […]

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SEC Issues Microcap Fraud Alert for Low-Priced Stocks

In a recent Release, the SEC warned investors about fraudulent schemes involving Over-The-Counter (OTC) stocks.  This warning also included stocks listed on the OTC Bulletin Board (OTSBB) and the OTC Markets Group, Inc. (f/k/a Pink Sheets).  Notably, companies quoted on the OTCBB/Pink Sheets and the OTC Markets are not subject to the more stringent listing […]

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