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FINRA Files to Limit Non-Lawyers’ Work on Arb Cases

The Financial Industry Regulatory Authority wants to revise its Code of Arbitration Procedure for Customer Disputes to revise and restate lawyer qualifications. FINRA has filed with the Securities and Exchange Commission to restate the qualifications for representatives in arbitrations and mediations in the forum administered by FINRA Dispute Resolution Services, or DRS. The changes would: disallow compensated representatives who are not attorneys from representing parties in the DRS forum; codify that a student enrolled in a law school participating in a law school clinical program or its equivalent and practicing under the supervision of an attorney may represent investors in the DRS forum; and clarify the circumstances in which any person, including attorneys, would be prohibited from representing parties in the DRS forum. According to FINRA’s filing, the broker-dealer self-regulator currently permits parties to arbitrations and mediations in the DRS forum to represent themselves, to be represented by an attorney at law in good standing or to be represented by a non-attorney representative, or NAR. Some NARs receive compensation in connection with their representation of parties. “Compensated NARs receive monetary or non-monetary compensation in connection with the representation of parties — including, for example, advance fees, consulting fees, payments in kind, referral fees...

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What’s Allowed and What’s Not in Self-Directed IRAs?

What You Need to Know Self-directed individual retirement accounts can allow clients to invest in real estate, venture capital funds and even cryptocurrency. It is critical to understand the rules governing self-directed IRAs before engaging in any investment strategy. Violating them has serious consequences. Making an impermissible investment or using IRA funds for a loan will cause the IRA to lose its tax-favored status. It’s common for clients to hold a significant amount of their wealth within individual retirement accounts. It’s also becoming more common for clients to develop an interest in managing their own investments — often, in nontraditional investments like virtual currency.  Self-directed IRAs can allow clients to invest in real estate, venture capital funds and even cryptocurrency if they’re careful. However, it is critical to understand the rules governing self-directed IRAs before engaging in any investment strategy. Violating the prohibited transaction rules has serious consequences, and it’s possible that the IRA could lose its tax-qualified status altogether, generating income tax liability and penalties. Impermissible IRA Investments Certain types of investments cannot be made with IRA funds (whether self-directed or not) because of Internal Revenue Service rules on permitted investments. Impermissible investments include life insurance and collectibles (certain...

Navacord announces partnership with Vancouver Island-based Harbord Insurance 0

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Navacord announces partnership with Vancouver Island-based Harbord Insurance

Toronto, ON (Oct. 2, 2023) – Navacord Corp. is pleased to announce their recent partnership with Harbord Insurance, effective September 1. Operating out of three locations across Vancouver Island, Harbord Insurance has become well-known for their dedication to service in personal lines for a diverse range of products, including home, auto, travel, recreation, and marine, since they were established in 1947. “Harbord will serve as a meaningful addition to Navacord’s roster,” says T. Marshall Sadd, Executive Chairman, Navacord. “Their extensive offerings, reputable service, and their knowledge of the needs for our Vancouver Island clientele reinforces our ability to provide tailored and comprehensive solutions from coast to coast.” Harbord will be supported by fellow Navacord Broker Partner and the leading brokerage on Vancouver Island, Waypoint Insurance. As two island-based, longstanding brokerages, both firms share many synergies across their approach to what it means to sustain a local brand through their commitment to the community, focus on clients, and pride in loyal service. This partnership not only expands Waypoint’s presence in Victoria, but also allows them to leverage their scale in order to drive improved efficiencies, strengthen value proposition for clients, and support the continued building of the Waypoint brand. “We’re thrilled...

Mosaic builds out five specialty lines of business across Canada 0

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Mosaic builds out five specialty lines of business across Canada

Hamilton, Bermuda (Sept. 26, 2023) – Mosaic Insurance is pleased to announce it has built out its team of underwriting specialists to provide global capacity in five lines of business to brokers and clients across Canada. The global firm opened an office in Toronto, Ontario last July, and since then, has expanded coast to coast in the Canadian specialty insurance market across five highly-relevant product lines –  cyber, transactional liability, financial institutions, professional liability, and environmental liability. “We’re tremendously proud of building our team of strong underwriting talent in five core product lines across all major Canadian geographies,” said Head of Canada Ian Fraser. “It’s a lot to have accomplished in a relatively short period of time. Our focus remains on creating innovative solutions for clients.” Fraser, who has more than 20 years’ experience in the specialty sphere and underwrites cyber, financial institutions, and professional liability, is joined in the Toronto hub by a team of four fellow specialists: Reynaldo Batac – VP, Underwriter, Professional Liability, Cyber & Financial Institutions – has more than 16 years of experience in several sectors of the insurance industry, including claims adjusting, risk engineering, insurance placement, and underwriting. He has spent most of his career...

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Lindberg’s Retrial, Set for Nov. 6, Could be Delayed Due to Co-Defendant’s Motion

Article 1 Comment The second trial for former insurance mogul Greg Lindberg, accused of attempting to bribe the North Carolina insurance commissioner, could be delayed, thanks to a co-defendant’s legal representation issues. Lindberg, who created a complex web of life insurance and other companies, was found guilty of bribery charges in 2020. But a federal appeals court found that jury instructions were improper and ordered a new trial, set for Nov. 6, a month from now. Lindberg Prosecutors have said that co-defendant John Gray, of Chapel Hill, North Carolina, a business partner of Lindberg’s, worked with Lindberg in attempting to funnel large campaign contributions to Commissioner Mike Causey, so that his office might provide more relaxed regulation of Lindberg’s insurance companies. The indictment, once sealed, can be seen here. This week, Gray asked a judge to delay the retrial until April 2024. Federal prosecutors had challenged the fact that Gray was represented by the Parker Poe law firm, which had earlier represented another co-defendant who was acquitted. Parker Poe attorneys in August withdrew and another firm just last month took over Gray’s defense. Now, the lawyers say they need more time to prepare. “Discovery for the initial trial was voluminous,...

Atlanta to Pay $3.75M to Family of Man Who Died After Being Handcuffed and Held Down 0

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Atlanta to Pay $3.75M to Family of Man Who Died After Being Handcuffed and Held Down

Article 0 Comments ATLANTA (AP) — The city of Atlanta will pay $3.75 million to the family of a Nebraska man who died after police handcuffed him face down. The City Council approved the settlement Monday, The Atlanta Journal-Constitution reported, after the Fulton County medical examiner determined that Ricardo Dorado Jr.`s death on Aug. 21, 2022 was a homicide. The medical examiner ruled that the death of the Lexington, Nebraska, resident was caused by prone restraint cardiac arrest. Complicating factors included Dorado having methamphetamine in his system, getting hit in the head by officers’ batons during his arrest and heart disease, according to the medical examiner`s report. “A review of the bodycam footage in this case clearly reflects that the egregious misconduct of several officers employed by the City of Atlanta Police Department caused Ricky’s untimely death,” Gabe Banks, an attorney for Dorado’s family, said in a statement. “Ricky was unarmed, and his death was completely preventable.” Officers were called to an Atlanta convenience store about a man vandalizing vehicles and gas pumps. After failing to subdue Dorado with electrical stun guns and pepper spray, an incident report says Dorado used a T-shirt to close the doors of the convenience...

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Tech Update: Re/Insurance Communications Platform ‘fuse’ Launches

Article 0 Comments A communications platform called “fuse” has been launched for the global commercial insurance and reinsurance industry. Fuse promises retail, wholesale and reinsurance brokers, insureds, insurers and reinsurers a web-based platform to connect and speed re/insurance transactions to placement. Available 24/7, fuse aims to reduce the time from submission to placement. The company behind the platform was founded by Sean Bourgeois, who was also the founder of Tremor, the online reinsurance marketplace. Users have the ability to work through multiple transactions with multiple parties in real time on a single monitor screen. They can discuss, clarify, negotiate and finalize a number of placements at the same time. For example, a broker with 10 active placements can have 10 messaging windows open on the same screen organized thematically so that broker, the insured and the underwriters can interact live and in real time, where everything is logged and tracked in one place, explained Bourgeois in an emailed statement. Bourgeois said a modern commercial re/insurance communications platform has “the potential to revolutionize how the market meets, negotiates and transacts.” “Precious hours and days are lost trying to keep track of and answer disparate unsecure emails and texts as commercial insurance...

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Tesla Engineer Defends ‘Full Self-Driving’ Name at Crash Trial

Article 0 Comments A Tesla engineer in court on Wednesday rejected a lawyer’s suggestion that the company named its driver-assistant feature “Full Self-Driving” because it wanted people to believe that its systems had more abilities than was really the case. The electric-vehicle maker is defending itself at the first U.S. trial over allegations that Tesla’s Autopilot feature led to a death. The lawsuit, filed in a California state court, alleges the Autopilot system caused owner Micah Lee’s Model 3 to suddenly veer off a highway east of Los Angeles at 65 miles per hour (105 kph), strike a palm tree and burst into flames, all in the span of seconds. The 2019 crash killed Lee and seriously injured his two passengers. The lawsuit accuses Tesla of knowing that Autopilot and other safety systems were defective when it sold the car. Tesla denies the claims, saying it is not even clear whether Autopilot was engaged at the moment Lee’s car crashed. The EV maker has been testing and rolling out its Autopilot and more advanced Full Self-Driving (FSD) system, which Chief Executive Elon Musk has touted as crucial to his company’s future but which has drawn regulatory and legal scrutiny. Plaintiffs’...

Climate Change Can Cause U.S. Households ‘Significant Financial Strain’ 0

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Climate Change Can Cause U.S. Households ‘Significant Financial Strain’

Article 0 Comments Households can experience significant financial strain through pressures to income and expenses due to climate hazards, a report from the U.S. Department of Treasury shows. The report, The Impact of Climate Change on American Household Finances, adds to the department’s work on broader issues around climate change and economic growth and stability. It examines the impacts of climate change on U.S. household finances, with a focus on households that may be most adversely affected. The report explores the impacts of climate hazards that may harm people, property, resources and the environment. “Climate hazards can cause widespread physical damage and force interruptions and closures of normal operations of businesses, governments, and other critical services,” the report states. “As a result, households can face financial strain from lost income and higher costs or reduced access across a range of consumer goods and services.” Climate change may also damage or destroy property, increase the cost of paying for utilities, and add to healthcare costs, the report shows. “Climate events and conditions can result in physical injuries, including those requiring medical care,” the report states. “For impacted households, climate-related hospitalization or medical services can lead to an overall increase in healthcare...

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Goldman’s Create-Your-Own ETF Hub for Clients Debuts First Funds

A Goldman Sachs Group Inc. platform for Wall Street clients riding the ETF boom has given birth to its first investment funds. Three exchange-traded strategies from Brandes Investments Partners will begin trading on Thursday through the Goldman Sachs ETF Accelerator, according to a press release Thursday. Those are the first to launch through Goldman’s hub, which is designed to help institutional clients launch their own ETFs while providing services such as portfolio implementation and capital-markets solutions. The platform, which was announced in November 2022, is a culmination of client demand as actively managed ETFs boom in popularity, according to Goldman’s Lisa Mantil. Assets in such funds have ballooned in recent years, stoking an arms race among ETF issuers seeking to capture market share — as well as new entrants. In addition to traditional asset managers, Goldman has also seen interest from hedge funds, insurance companies and pension funds. The consulting service is the first of its kind among the large Wall Street banks. “There were dozens and dozens of our core Goldman Sachs institutional clients calling, wanting to get into the active ETF space but had no idea how to do it,” Mantil, global head of the Goldman Sachs ETF Accelerator, said...