Posted on Nov 11th, 2015
JP Turner is once again in the regulatory spotlight, being fined by $45,000 by FINRA for failing to give their clients volume discounts their investors were entitled to in purchases of non-traded REITs.
For some firms, this might be a big black eye. For JP Turner, this could be considered getting out of their compliance exam easy.
JP Turner has been in hot water with the Financial Industry Regulatory Authority (FINRA) since at least 2008, when it paid a $250,000 fine for charging customers commissions that were excessive. In 2013, JP Turner paid over $700,000 for poor procedures related to putting investors into risky exchange-traded funds (ETFs) and for mutual fund “switching,” moving investors into and out of successive mutual funds just to generate extra commissions.
Posted on Oct 4th, 2016
If you’re reading this article, there is a good chance you invested in or through an entity that is now in receivership, and you probably have a lot of questions! The purpose of this article is to give you a general overview of how receiverships work so you know what to expect. Every receivership is different, but every receivership goes through four overlapping stages: 1) stabilization; 2) investigation; 3) litigation; and 4) distribution.
These four stages all support the overarching goal of every receivership—the orderly winding down of a business in a manner that maximizes value for investors.
We will come back to these four stages in a minute, but first it is important to understand the background context that gives rise to a receivership.
Posted on Jun 23rd, 2015
Financial advisors love to sell variable annuities. The reason is simple—commissions of up to 8%. If a financial advisor can sell you a $200,000 variable annuity, that means commissions of up to $16,000. Not bad for a day’s work!
Unfortunately, commissions are just about the only thing that is simple about variable annuities.
The one reason why variable annuities are almost always a bad idea is that they are too complicated for ordinary investors (and normal people in general) to understand. Seriously, have you ever tried to read a variable annuity policy? Here is just one example from an actual policy. Try to stay awake through this, because there is a lot more you urgently need to know about variable annuities: