As investors flock to gold, FINRA warns of gold-related Ponzi schemes:
http://www.finra.org/Newsroom/NewsReleases/2011/P124214

In one more, rather shocking example of how the rich get richer, a new study reveals that some of the best-paid chief executive officers in the U.S. earned more in salary and other compensation in 2010 than their companies’ federal income tax expenses.

The number of investment advisers registered with the Securities and Exchange Commission has fallen for the first time in 10 years, while the assets they manage have increased sharply, according to a report released today.

Traditional broker-dealer business continues to change rapidly, making it more difficult, and more expensive for the small, as well as large brokerage firms to stay competitive. The combination of technology which offers investors a less expensive way to buy and sell securities; increased, although usually ineffective regulatory oversight and a lack of confidence in brokerage advice is taking its toll.

For more information, visit:http://www.investmentnews.com/article/20110828/REG/308289997&dailycount=7&issuedate=20110829

Filings are down at FINRA arbitration, reflecting a trend that losses are market driven not the result of poor advice or product failures. New case filings through July reflect a 12% decline when compared to the same period 2010.

Large banks have manipulated Libor interest rates since 2007, claims Schwab:

http://www.investmentnews.com/article/20110825/FREE/110829958

SEC probes oil and gas companies for details on fracking:

http://online.wsj.com/article/SB10001424053111904009304576528484179638702.html

As implementation of the Dodd Frank bill meanders its way through full adoption and the rule making process, it is fairly obvious that all financial advice professionals- RIA’s as well as brokers will be subjected to a federal imposed fiduciary standard. Investment advisers currently have to meet that bar, while broker-dealers adhere to a less stringent suitability standard that requires them to recommend financial products that satisfy a clients investment needs.

Under authority from the Dodd-Frank financial reform law, the Securities and Exchange Commission said that it intends to propose a rule this fall that would impose a universal fiduciary duty on anyone providing retail investment advice.

The firm has seen a recent up-tick in the number of “golden handcuff” promissory note disputes involving large wire house firms, particularly Morgan Stanley Smith Barney. Like other large firms, Morgan Stanley Smith Barney entices financial advisors to join the firm by offering large, up-front promissory note “bonuses” which typically are forgiven over time. With the brokerage industry in turmoil, many advisors have been terminated or are transferring firms and are left owing substantial amounts on their golden handcuff, forgivable notes. Financial Advisors who believe they may have a claim against their employer, including current or former employees of Morgan Stanley Smith Barney, are encouraged to contact Erwin Shustak or Thomas Frost at 888.748.8748.

In California, when registered representatives assert arbitration claims against member firms, we recommend including allegations involving violations of California labor law such as requiring the rep to pay for an assistant or some other cost that legally should be paid for by the firm. Not only does a labor code violation increase the potential for damages recovery, but it reduces the cost of the FINRA arbitration filing from $1,800 to a maximum of $200, a considerable savings easily accomplished by artful and knowledgeable drafting of the arbitration claim. See ARYBETH ARMENDARIZ et al., Plaintiffs and Respondents,v. FOUNDATION HEALTH PSYCHCARE SERVICES, INC., Defendant and Appellant.