Fiduciary Expert Witness Litigation Consulting
Breach of Fiduciary Duty, Trust Litigation, FINRA Suitability, Failure to Supervise
Over 30 years of actual, hands-on securities industry management and independent expert experience and advanced fiduciary training.
Global Financial Crisis & Shadow Banking Expert
Securities, Futures, Precious Metals, Derivatives, Hedge Funds, Investment Adviser, Bank, Trust Company, Insurance, Annuities
Incandescent Financial Services & Securities Industry Insights
Information asymmetry may explain all or part of a claim. From the 1970’s to today, significant change has occurred in investors including sovereign wealth funds, institutional investors, accredited, high net worth and other individual customers. Trading has shifted dramatically to ECN’s also called dark pools, high frequency algorithmic trading (HFT) to periodic auctions to ubiquitous online self-directed retail traders. Analysis spans all touch points emanating from the media, suitability, trade executions, trade clearing, settlement, contracts, agreements, authorized or unauthorized trades, commissions, fees, PPM’s, prospectus, compensation (both hard and soft dollar) and other emoluments.
Securities brokers, Bank Trust, Fiduciary Duty, Suitability, Supervision
For decades, no matter type of account or payment by customers of fees or commissions or both, some accounts require securities broker dealers, branch managers, supervisors and series 7 licensed registered representatives to provide a fiduciary duty in addition to a suitability determination. Fiduciary duty requires specific steps not limited to diversification; self directed accounts, for instance at discount brokers, like Charles Schwab, E-Trade, TD Ameritrade, Fidelity, Scottrade may require, depending on facts and circumstances, a fiduciary duty and FINRA suitability and supervision compliance requirements.
Introducing brokers, carrying, clearing or prime brokerage relationships increase complexity of compliance with securities industry rules and regulations.
Breach of Fiduciary Duty-> Liability -> Damages -> Expert Testimony and Reports
Broker Dealers, Primary Dealers, Discount Brokerage, Banks, Affiliates/ILC’s, Investment Advisers, Hedge Funds, Asset Managers, Consultants, Auditors, TPA’s, Custodians
Trades – best execution, new EU MiFiD II, confirmations, commissions, rebates, order flow, order routing, agency, principal, liquidity, dark pools, algorithmic trades, high frequency trading, trade reporting; tax withholding, return of principal, dividend reinvestment
Investments – securities, commodities, futures, options, precious metals, mutual funds, closed-end funds, ETF’s, ETNs, unit trusts, insurance, annuities, derivatives, money market mutual funds, Asset backed Commercial Paper (ABCP), Auction Rate Securities (ARS), mortgage backed and related securities (RMBS, CMO’s, CDOs, CPDOs, CMBS)
Services – financial planning, managed accounts, investment consulting, brokerage, prime broker, stock loan (securities lending), hypothecation / re-hypothecation, Reg T margin accounts, Reg U non-purpose loan accounts, market makers, proprietary trading, leverage, mark to model, mathematical models, internal risk management
Hedge funds, 144, Private placements, Reg D, Sophisticated or Accredited Investors
Domicile – US and offshore; foreign
ERISA, Custody, soft dollars, master trusts, reporting, regulatory requirements, record keepers, third party administrators (TPAs); participants’ communication materials
Account Insurance – FDIC, SIPC, Excess SIPC, (Capco Broker dealer self insurance)
Regulatory – FRB, OCC, FDIC, OTS, FINRA, SEC, NYSE, NFA, CFTC, NASAA, State Agencies
Related areas – Securities, banking, insurance – Compensation, Valuation, Employment – Recruitment, Training, Supervision, Compliance, Wrongful termination, Raiding; Retirement, Forgivable Loans, Retention Awards; Compensation – commissions, overrides, bonus, restricted stock and options – Stock brokers, traders, branch and regional managers, senior management, support personnel.
Anti Money Laundering – AML, BSA, USA Patriot Act, KYC and CIP.
Uniform Prudent Investor Act applies to all trust accounts, since 1996 in California, although certain aspects were already applicable.
Customer’s accounts subject to Fiduciary Duty include but are not limited to:
Trusts – life insurance, revocable, irrevocable and charitable
IRA and IRA Rollover accounts
ERISA Defined Benefit Pension, Defined Contribution, Profit Sharing, 401k & 403b Plans
Public Employees Pension benefit and Retirement Plans
Union Pension Benefit, Retirement Plans, Taft Hartley plans
Tax exempts, 501(c)-3 – Non-profits, Charities, Foundations and Endowments (Eleemosynary)
HOAs, Cemetery, Custodial, Minors (UTMA, UGMA, Coogan’s), Guardian and Conservator accounts
Divorces involving the above accounts, a spouse, financial institution third party may be responsible for poor performing assets or losses. See Divorce Fiduciary Audit™
* Note: Fiduciary Duty, if any, is in addition to, may precede and supersedes Suitability, and may arise at any time, affect any type of account, investment, insurance or asset including Real property, Copyrights, Trademarks, Patents, Intellectual property, Family or Closely held business, LLP’s, LLC’s, FLP’s, general or limited partnerships. See Real Estate Losses page for Investment / Rental Real Estate losses.
In nearly every dispute whether trust or non-trust account, IRA, ERISA pension retirement benefit plan, charity, non-profit, foundation or endowment account, at the outset parties form a trusting relationship, promises are made, expectations are created, reliance and often complacency can take root, disappointments occur, communication wanes, account values continue to suffer, risks increase, prudence gaps manifest then arbitration claims or lawsuits are filed.
It’s best if we can be retained prior to the establishment of the new account (or new advisory) relationship to help prevent these types of situations When lawsuits or claims are contemplated we prefer to be involved at the earliest opportunity prior to filing.
For concerns related to breach of fiduciary duty, self-dealing, conflict of interest or malfeasance or violations of FINRA or SEC securities industry rules and regulations please contact us at:
firstname.lastname@example.org or (310) 943 – 6509
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