The Securities and Exchange Commission (SEC) has set out its Office of Compliance Inspections and Examinations’ (OCIE) 2016 priorities. New areas of focus include liquidity controls, public pension advisers, product promotion, in addition to two popular investment products – exchange-traded funds and variable annuities.
“There is a common opinion that if you study hard and graduate with an “A diploma,” it will guarantee you will find a great job that pays well. Unfortunately, the reality is different. Although, most positions require you to have a diploma, no one will look through your grades. When you graduate, the only thing that matters is your knowledge and the ability to operate within the system.”
If you go to the doctor and the doctor prescribes medicine made by a company that the doctor owns shares in, does the doctor have a conflict of interest? What if the doctor is paid for every pill she prescribes? Is that a conflict?
Financial fraud in the United States is alive and well. And, as Stephen A. Bornstein wrote in this newspaper nearly a year and a half ago in this newspaper, the JOBS Act is likely to cause an uptick in fraudulent investment schemes.
Tesla produces cars, but investors shouldn’t think of Elon Musk’s pet company as an auto manufacturer. Rather, Tesla seems primed to win big in another field.
SEC lifts the ban. Time to re-think your portfolio?
Accredited investors who are not experienced in making such investments will suffer some degree of information overload, as they get up to speed on these investment categories. There will also be scams and schemes designed to take advantage of their lack of knowledge.