Investors also should exercise diligence even with properly registered brokers at legitimate firms, said Jane Stafford, an attorney in Prairie Village who handles securities cases and consults with firms about regulatory compliance issues.
A second opinion (about an investment offer) never hurts, even if it's from a broker down the street or a CPA, especially if it's something different or unusual," she said.
Brokers who don't pay arbitration awards "get their registration suspended", says Jane L. Stafford, a securities lawyer in Kansas City, Mo. If advisers don't pay, they "may have to disclose that they have an unsatisfied judgment against them, but it's not an automatic shutdown."
One major change in the new form is an emphasis on discussing in detail an adviser's investment strategy, said Jane Stafford, founder of Stafford + Associates LLC.
He should have said, "I'm making more money under this new arrangement," said Jane Stafford, founder of Stafford Law Firm LLC. Ms. Stafford and others think the Sage case portends more actions against retail RIA firms concerning conflicts of interest in general.
If the new rules do diminish returns of fixed-income funds, "at least there will be transparency", said Jane Stafford, a principal at Stafford Law Firm LLC.
Advisers should expect auditor bills of between $10,000 and $20,000, said Jane Stafford, founder of the Stafford Law Firm LLC, which represents advisory firms. Her adviser clients "are not happy about it", Ms. Stafford said.
"[A cause of action for] aiders and abettors is not in the Advisers Act", said Jane Stafford, managing member of Stafford & Associates LLC in Kansas City.
How to Survive in Arbitration Nation, Registered Representative (January 2006)
There is something called a daisy chain, explains Jane Stafford. If a plaintiff's attorney finds out that a broker has been into that company or group [with a prior claim], he or she can follow that same daisy chain.
SEC is said to be struggling with its oversight of RIAs, InvestmentNews (Sep 26, 2005)
Some of the attendees at the session said they had negotiated for lower fund ticket charges or eliminated them. Jane Stafford of Stafford + Associates LLC.
"[The Consumer Protection Act] just seems to be an easier statute to get into", said Jane Stafford of Stafford + Associates LLC, a Kansas City securities lawyer.
"I've definitely noticed a dramatic increase in the number of arbitration cases", said Jane Stafford of Stafford & Associates, a boutique firm that specializes in securities industry cases.
Elderly people who are on limited incomes often are targeted for variable annuities, said Jane Stafford, a securities lawyer at the Kansas City law firm Stafford & Associates.
After more than 20 years in corporate law firms, Jane Stafford decided last year that Kansas City needed a boutique firm specializing in securities law.
Annuities are ill-suited for many retirees and novice investors, said Jane Stafford, a securities lawyer for Stafford & Associates LLC.
Because they are long-term investments that charge steep surrender and early-withdrawal fees, variable annuities may be ill-suited for many retirees and novice investors, Jane Stafford, a securities lawyer.
Protect Your Nest Egg: Stay Informed, at www.prnewswire.com, 19 May 2005
"Financial advisors are not obligated to disclose their biases, so make sure you ask plenty of questions and conduct the necessary research before you invest," Stafford says.
Biographical Notice for Jane L. Stafford, Kansas City Star, (Apr. 4, 2005).
I believe strongly in the securities industry, and people are only going to get back into the industry only if they understand and know what is going on, Jane Stafford said. Also, it is really hard to see an elderly couple come in here with all their money gone and they planned to have a nice retirement. Now they are looking at living on Social Security.