Posts Tagged ‘Suitability’
What is a stock borrow program?
The Financial Industry Regulatory Authority (FINRA) fined Citigroup Global Markets, Inc. $650,000 for disclosure and supervisory violations relating to the operation of its stock borrow program. What is a stock borrow program? A stock borrow program is an agreement between the customer and his/her brokerage firm that allows the brokerage firm to borrow securities from the customer’s ...
The Alphabet Soup of Securities Litigation
The alphabet soup of securities litigation starts with the broad variety of investment securities offered by financial advisors. For example, CDO (collateralized debt obligation) SIVs (structured investment vehicles), MBS (mortgage backed securities), and trust preferred securities were common investments held by large financial institutions and owned in client investment accounts. Investors of all risk tolerances ...