Insurable Interest Canadian Insurance Blog

On Sept. 6, in connection with an investigation into Perryman’s potential undisclosed outside business activities, FINRA sent a request to Perryman for the production of information and documents pursuant to FINRA Rule 8210, according to FINRA’s order.  As stated during Perryman’s counsel’s phone call with FINRA on Sept. 23, “and by this agreement, Perryman acknowledges that he received FINRA’s request and will not produce the information or documents as requested,” FINRA’s order states.  By refusing to produce the information or documents requested pursuant to FINRA Rule 8210, Perryman violated FINRA Rules 8210 and 2010 and was barred from associating with any FINRA member in all capacities.

What You Need to Know A Florida couple filed a complaint claiming damages related to complex securities. The award includes $9 million in punitive damages. Stifel called the award a windfall and said it would move to vacate it. Stifel Nicolaus must pay roughly $14.2 million in damages, interest and fees to a Florida couple and a related family business over their investments in structured notes, a Financial Industry Regulatory Authority arbitration panel ruled last week. Louis and Elizabeth DeLuca of Jupiter, Florida, and the business allege they sustained significant losses related to investments in complex securities known as structured notes, according to a complaint filed Friday in U.S. District Court in Florida seeking to confirm the FINRA decision issued a day earlier. Stifel plans to request that the award be vacated. The couple first made claims against Stifel with FINRA in May 2023, alleging breach of fiduciary duty, negligence, negligent supervision, fraud, breach of contract and violation of the Florida Securities and Investor Protection Act. They had sought $1 million to $5 million in punitive damages, plus costs, fees and other relief that the panel deemed appropriate. Stifel denied the claims, asked that FINRA award the DeLucas nothing, and sought...

3. Consider advantaged sectors. With the Fed cutting interest rates, I’m advising clients to adjust their portfolios by rebalancing into growth-oriented equities and sectors that may benefit from lower borrowing costs, such as technology and consumer discretionary. While the market often bakes in speculation about rate cuts in advance, there are still opportunities to capitalize on the positive momentum lower rates can bring. At the same time, I recommend reassessing bond holdings, as the drop in interest rates can lead to lower yields. For income-seeking clients, diversifying into high-quality, dividend-paying stocks or considering alternative income-generating investments can help. Lastly, maintaining global diversification remains crucial, as rate cuts in the U.S. can affect international markets differently, offering additional opportunities abroad. — Arielle Tucker, lead planner, Connected Financial Planning

What You Need to Know Schwab’s annual independent advisor study shows a big interest in using technology for faster growth. Data integration is a major goal for many firms, as is studying up on the potential in AI tools. Cybersecurity is another growing focus and a common area of investment this year. Independent financial advisors expect technology to remain a driving force behind their industry’s growth in the future, according to Charles Schwab’s 2024 Independent Advisor Outlook Study, with particular interest expressed in the opportunities presented by automation and artificial intelligence. When asked what they feel is the biggest driver of change in the industry, a plurality of advisors (43%) cited “technology.” The survey responses show they continue to view technology as a critical enabler of their businesses, especially when it comes to creating internal efficiencies. Even more advisors (87%) agreed that the technology they have embraced has actually allowed them to run their firms more efficiently. Advisors also feel that technology continues to play a key role in how they engage with investors, with 82% saying it is important to how they work with existing clients and 57% saying tech has become more important for attracting new clients. In...

Yields on the policy-sensitive two-year Treasury surged after the release, trading more than 18 basis points higher at 3.89%. “For markets, this is pushing back on overly aggressive expectations of rate cuts by the Fed,” said El-Erian, who’s also a Bloomberg Opinion columnist. “This will get the market closer to what’s likely.” Fed official Austan Goolsbee had a different take after the data. He said the jobs readout supported a case for lower rates in the months ahead while acknowledging that the central bank’s focus should remain on longer-term trends in inflation and the labor market. “That we got a superb number, I’m extremely happy with, but let’s not lose sight of what’s the longer thread,” Goolsbee, president of the Federal Reserve Bank of Chicago, told Bloomberg Television. “A large majority of the committee feels that conditions are going to improve on inflation, that we’re going to keep getting closer to the 2% target, that the unemployment rate is going to stabilize at full employment, and that rates are going to come down a lot over the next year, 12 to 18 months,” Goolsbee said. (Credit: Bloomberg) Copyright 2024 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or...