Press Release: SECRETARY GALVIN CHARGES SCOTTRADE, INC. IN CONNECTION WITH THE FIDUCIARY RULE
15 Febrero 2018 - 09:47AM
Noticias Dow Jones
William Francis Galvin
Secretary of the Commonwealth
Contact: Debra O'Malley February 15, 2018
Telephone: 617-727-9180
Secretary of the Commonwealth William F. Galvin today charged
Scottrade Inc., a broker-dealer registered in the Commonwealth,
with dishonest and unethical activity and failure to supervise.
Galvin's office alleges that Scottrade, Inc. knowingly violated the
firm's impartial conduct standard, which was adopted to comply with
the Department of Labor's Fiduciary Rule.
The Fiduciary Rule mandates that all financial professionals who
work with retirement plans or provide retirement planning advice
act as fiduciaries, and are therefore legally and ethically bound
to meet the standards of that status. To comply with the rule,
which requires those who provide retirement investment advice to
act in the best interest of their clients, Scottrade adopted a rule
prohibiting sales quotas, appraisals, bonuses, contests, and other
incentives for retirement or prospective retirement account
clients.
The complaint, filed by Galvin's Securities Division today,
alleges that despite the impartial conduct standard required by the
Fiduciary Rule, Scottrade held at least two sales contests which
included retirement assets after June 9, 2017, when the rule went
into effect. The performance of agents who participated in the
contests was tracked and appraised, and awards and incentives were
given out in connection with retirement assets. The complaint
alleges that these contests were in violation of the firm's
impartial conduct rule and demonstrate a failure of the firm to
make a good faith effort to comply with the Fiduciary Rule.
"Despite the efforts in Washington to kill the Fiduciary Rule,
the impartial conduct provision remains in place," Galvin said. "If
the Department of Labor will not enforce its own laws and rules,
then the states must do what they can to protect retirees from
firms who believe they can play with peoples' life savings by
conducting sophomoric contests."
The complaint seeks a cease and desist order, censure, and an
administrative fine.
(END) Dow Jones Newswires
February 15, 2018 10:32 ET (15:32 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Toronto Dominion Bank (TSX:TD)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Toronto Dominion Bank (TSX:TD)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024