FINRA Alert Prompts CUs to Review IRA Rollovers
Concerned about the potential conflict of interests involving individual retirement account rollovers, the Financial Industry Regulatory Authority issued an alert in December putting financial advisers on notice to review their practices.
Specifically, FINRA urged broker-dealers to ensure that conflicts of interest do not impair judgment about what is in the customer’s best interest, the guidance read. FINRA also reminded investment representatives to neither confuse investors nor interfere with important educational efforts.
One of the benefits of a credit union utilizing a third party broker-dealer, is that the broker-dealer is responsible for adhering to securities laws such as those promulgated by FINRA, said Tim Halevan, vice president and chief compliance officer for CUNA Brokerage Services Inc. in Madison, Wis.