FINRA Gets Tough on TICs - NOT!

Is FINRA Effective? Do investors need the fiduciary standard -- or is suitability enough?

FINRA Gets Tough on TICs - NOT!

Postby REIT Wrecks » Mon Oct 31, 2011 3:13 pm

Here's an interesting recent article from Forbes entitled "TIC-ed Off Customers Sue Over Tenants In Common Investment". It touches on a number of issues, including the debate on the practicality of the "suitability" standard (Surprise: based on this flimsy standard, FINRA denied the claimant's allegations in full):

http://www.forbes.com/sites/billsinger/ ... ment-case/

Forbes wrote:For public customers, an investment that’s suitable for you shouldn’t mean one that is generically suitable for investors in general. Suitability should be achieved based upon your unique circumstances of age, sophistication, net worth, income, etc. Demand a recommendation that’s “best” for you. A lazy stockbroker might put a smorgasbord of suitable investments before you and try to push you into purchasing the one that pays the highest commissions or fees, or is a house-product that the employing firm prefers to move. Be careful. Ask questions. Insist upon what’s best for you and you alone.

User avatar
REIT Wrecks
Site Admin
 
Posts: 415
Joined: Wed Jan 27, 2010 2:31 pm

Return to The FINRA Forum