Tag Archives: advisor

Audited Performance? Most TAMPs aren’t!

audit image 2Did you know?

  • The Buy/Hold Plus performance figures are the returns actually experienced by our clients AFTER ALL FEES.
  • Check your Performance Statements from your current managed account program.  Most TFS used Managed Account Programs have unaudited, before fees, non-client correlated performance.
  • Much time, effort and expense is spent to have our performance audited.
  • The Buy/Hold Plus 2015 Independent Accountant’s Report ending 2015 can now be found on our website.

Is Your Managed Account Performance Audited?  Most are not.                                                         What are you portraying to your clients?


New Fund Changes!

Our Quarterly Fund Replacement Review has been performed. In keeping with the program’s goal of maintaining only the highest quality funds in the investment portfolio, the following changes have been implemented:exchange image 3

  • iShares North American Natural Resources (IGE) exchanged for Vanguard Materials ETF (VAW) — Due to the recent volatility in the Natural Resources asset class, it provided us with an opportunity to harvest some short-term tax losses by substituting IGE for the materially similar VAW. 
  • RS Select Growth Y (RSSYX) exchanged for iShares Mid Cap Growth (IWP) and Eagle Mid Cap Growth I (HAGIX)

The fund families currently owned in model portfolios are now: Laudus, Franklin Templeton, SunAmerica, iShares, J.P. Morgan, T. Rowe Price, Delaware, Eagle, Oppenheimer, MFS, AMG Managers, Weitz, Metropolitan, Vanguard, Western Asset, and TCW.

 For the performance of each portfolio model, or additional information on any of the extensive ongoing management benefits, please feel free to contact Tara Giarraffa Recupido at (800) 614-2980 or visit BuyHoldPlus.com.

Tomorrow's Financial Services, Inc.

Be Vigilant of Fund Transfer Request via e-mail

Hacking an e-mail account is a common thing now days. We need to be alert of Fund Transfers request via e-mail. It can inflict financial damage to the firm and the registered representative, this is something that can be avoided.

Reg. Rep. X (CRD #1234567, Registered Representative, Edison, New Jersey) was fined

$7,500 and suspended from association with any FINRA member in any capacity for 10

business days. The fine shall be due and payable on Reg. Rep. X  return to the securities industry.

The sanctions were based on findings that Reg. Rep. X falsely attested that she had confirmed

a request for a fund transfer with a customer and as a result, caused her member firm’s

books and records to be inaccurate. The findings stated that Reg. Rep. X processed the fund

transfer request that she thought a customer had sent, but the transfer request was

actually sent by an imposter who hacked into the customer’s email. In order to finalize

the transfer of funds, and to accommodate what she believed in good faith to be the

customer’s wishes, Reg. Rep. X provided a false attestation in her firm’s electronic wire transfer

system. In reliance upon Reg. Rep. X’s attestation and the information the imposter provided, the

firm wired the funds from the customer’s account to the account the imposter specified.

The imposter requested a second transfer and at that point, Reg. Rep. X and the adviser she

assisted became suspicious. Reg. Rep. X and the adviser brought the incident to a branch manager

after they determined the signature on the letter of authorization (LOA) did not match the

customer’s signature on file. As a result, the firm investigated the incident and terminated

Reg. Rep. X based on her false attestation. Reg. Rep. X initially represented that she mistakenly checked

the box attesting that she had spoken with the customer and later volunteered that she did

so knowingly.


Tomorrow's Financial Services, Inc.

Firms Responsibilities When Providing Customers with Consolidated Financial Reports

FINRA Reminds Firms of Responsibilities When Providing Customers with Consolidated Financial Account Reports

Executive Summary

The practice of providing customers with consolidated financial account reporting has become increasingly common in the financial services industry. In many cases, these reports offer a single document that combines information regarding most or all of the customer’s financial holdings, regardless of where those assets are held. Firms are reminded that these reports represent communications with the public by the firm; the dissemination of these reports must comply with all applicable FINRA rules as well as the federal securities laws.

As investor demand for this service has grown and as increasingly sophisticated software and data service providers have become available, firms have developed differing practices for generating these communications. If not rigorously supervised, this activity can raise a number of regulatory concerns, including the potential for communicating inaccurate, confusing or misleading information to customers, lapses in supervisory controls, and the use of these reports for fraudulent or unethical purposes.

This Notice reminds firms of their responsibilities to ensure that they comply with all applicable rules when engaging in this activity, and highlights a number of sound practices. Firms are strongly encouraged to review the overall adequacy and effectiveness of their current policies and procedures relating to their consolidated reporting. Any firm that cannot properly supervise the dissemination of consolidated reports by its registered representatives must prohibit the dissemination of those reports and take the necessary steps to ensure that its registered representatives comply with this prohibition.

General questions about this Notice should be directed to:

  • Steve Kasprzak, Associate Director & Principal Counsel, Sales Practice Policy, Member Regulation, at (646) 315-8603; or
  • Bill Hayden, Emerging Regulatory Issues, at (202) 728-8860.

For questions about communications with the public, contact Amy Sochard, Advertising Regulation, at (240) 386-4508.


Tomorrow's Financial Services, Inc.

FINRA Reminds Firms of Their Responsibilities Concerning IRA Rollovers

Executive Summary

FINRA is issuing this Notice to remind firms of their responsibilities when (1) recommending a rollover or transfer of assets in an employer-sponsored retirement plan to an Individual Retirement Account (IRA) or (2) marketing IRAs and associated services. Reviewing firm practices in this area will be an examination priority for FINRA in 2014.

Questions concerning this Notice should be directed to:

  • Thomas M. Selman, Executive Vice President, Regulatory Policy, at (202) 728-6977 or by email; or
  • Angela C. Goelzer, Vice President, at (202) 728-8120 or by email.


Tomorrow's Financial Services, Inc.

FINRA updates forms for Private Placements of Securities

FINRA Updates Form for Filing Private Placements of Securities Pursuant to FINRA Rules 5122 and 5123

Executive Summary

FINRA has updated the form that firms must use to file offering documents and information pursuant to FINRA Rules 5123 (Private Placements of Securities) and 5122 (Private Placements of Securities Issued by Members). The updated form, which is available in the FINRA Firm Gateway, includes six new questions, which are further described in this Notice. FINRA also has updated the Private Placement Form Frequently Asked Questions (FAQ).

Questions concerning this Notice should be directed to:

  • Joseph E. Price, Senior Vice President, Corporate Financing Department, at (240) 386-4642; or
  • Lisa Jones Toms, Senior Director and Counsel, Corporate Financing Department, at (240) 386-4623.


Important Information about Outside Business Activities

SEC Approval and Effective Date for New Consolidated FINRA Rules (Including Outside Business Activities)

Effective Date: December 15, 2010

Executive Summary

Following the consolidation of NASD and the member regulation, enforcement and arbitration functions of NYSE Regulation into FINRA, FINRA established a process to develop a new consolidated rulebook (Consolidated FINRA Rulebook), which FINRA has discussed in previous Information Notices. FINRA is proposing new consolidated rules in phases for approval by the Securities and Exchange Commission (SEC) as part of the Consolidated FINRA Rulebook.

In August and September 2010, the SEC approved three rule filings relating to the Consolidated FINRA Rulebook. FINRA Rule 5121 (Public Offerings of Securities With Conflicts of Interest) and the FINRA Rule 11000 Series (Uniform Practice Code) will take effect on December 15, 2010. The effective date of FINRA Rule 3270 (Outside Business Activities of Registered Persons) is also December 15, 2010; however, for registered persons who are actively engaged in an outside business activity prior to December 15, 2010, firms have until June 15, 2011, to review such pre-existing activities under the standards set forth in FINRA Rule 3270, including the requirement that firms keep a record of their compliance with such standards.

Questions regarding this Notice should be directed to:

  • Kosha Dalal, Associate Vice President and Associate General Counsel, Office of General Counsel (OGC), at (202) 728-6903 (regarding the FINRA Rule 11000 Series);
  • Gary Goldsholle, Vice President and Associate General Counsel, OGC, at (202) 728-8104 (regarding FINRA Rule 3270); or
  • Stan Macel, Assistant General Counsel, OGC, at (202) 728-8056 (regarding FINRA Rule 5121).







Tomorrow's Financial Services, Inc.

Brokerage and IRA Fees

FINRA Provides Guidance on Disclosure of Fees in Communications Concerning Retail Brokerage Accounts and Individual Retirement Accounts

Executive Summary

FINRA is issuing this Notice to provide guidance to firms on communications with the public concerning the fees associated with retail brokerage accounts and individual retirement accounts (IRA).

Questions concerning this Notice should be directed to:

  • Thomas A. Pappas, Vice President, Advertising Regulation, at (240) 386-4553; or
  • Amy C. Sochard, Director, Advertising Regulation, at (240) 386-4508.



The full-service fiduciary

Regulation is sweeping the industry worldwide and will change the way insurance agents and financial advisors conduct business in the future.

full_service-resize-380x300In 2010, the passage of the Dodd-Frank Act in the United States required a uniform fiduciary standard covering both stockbrokers and financial advisors when providing personalized financial advice. Recently, the Australian legislature imposed a fiduciary duty to act in customers’ best interest applying to all retail products, including superannuation and investment products. In the Netherlands and U.K., they are banning commissions and moving to a fee-for-advice model.

Registered Investment Advisors have both a suitability requirement and a fiduciary duty. They are regulated by the SEC and are normally paid through a percentage of assets under management or on an hourly basis.

Let’s take a look at the definition of a financial advisor, according to Annuity Digest:
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