Tag Archives: Investing

FINRA Gift Policy Fights Fraudulent Business Practices

Market makers on Amsterdam Stock Exchange

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FINRA is the acronym for the Financial Industry Regulatory Authority. Although the name sounds governmental, FINRA is actually a private corporation that oversees brokers and markets dealing with stock exchanges. The goal of FINRA is to ensure ethical and fair trading practices throughout the nation. One of the ways FINRA works to meet this goal is through establishing policies around corporate gifts. The main point of the FINRA gift policy is that business related gifts should be under $100 in value.

The reason it is important to monitor corporate gifts is because they can lead to fraudulent behavior. Almost all publicly held companies are required to maintain a corporate gift policy to avoid potential fraud. Fraud occurs when a large dollar gift sways a business partner, customer, or vendor in a business decision.

A possible example of fraud can be seen in a relationship between a large broker and wealthy investor. The investor may want to ensure a certain stock does well for his own financial purposes. The investor might offer the broker season tickets for his favorite professional sports team or an all-expense paid ski week in Colorado. In exchange, the investor might want the broker to encourage clients to buy or sell stock the broker would not otherwise endorse. This represents a type of financial fraud.

Everyone can agree fraud of this type should not be allowed. However, when it comes to monitoring gift compliance, many companies run into trouble. Most companies must prepare a financial disclosure statement of some kind on a quarterly or yearly basis. Depending on the company, corporate gifting may need to be a part of this statement. Publicly traded companies often have hundreds or thousands of employees, and gathering data about gifts can be an enormous task.

Employing the use of an expense and finance tracking software will help companies keep track of spending. This includes expenses related to corporate gifts provided by employees within the company. Corporations may also require each team member to utilize the software to report gifts they received from outside sources such as vendors.

Careful record keeping through the use of good financial compliance software will help companies maintain compliance with FINRA gift policy and procedures. It will also make preparation of financial disclosure statements less stressful, more accurate, and lower labor costs associated with reporting.

How I Got Started In World Financial Group


Back several years ago a friend introduced me to a business opportunity doing financial services with a company called World Financial Group.  Intrigued by the opportunity I started researching it and looking to see if it was a good company or not.

In fact looked I up World Financial Group Reviews on the web and found all kinds of people talking about this company.  However not all were good in fact some people even called it the World Financial Group Scam, but with all the negative info I decided to give it a shot anyways and in this article I’m going to show you just how I got started with this business opportunity.

First off, when I got stated with WFG I was encouraged to build a big list of a 100 names of people to talk to.  However I took it one step further and came up with a list of 1000 people to talk to.  When it comes to getting started in this business you need to have large amount of people to talk to and the best way to do this is to come up with a big list of people to talk to.

Secondly you need to get trained.  Once you’ve been accepted into the company and have a big list of people to talk to you need to start working with your trainer to understand how this business works.  This may take some time to do.  On top of that you will need to learn how to contact the people on your list and learn just exactly what you need to say to them in order to get an appointment.  This also means being consistent with making phone calls as well.  If you want to see consistent results as a part timer contact at least 5 people a day.

Third and finally, if you want to get paid in this business you’ll have to get licensed.  In most cases you’ll need to get your life insurance license, and securities licenses to sell investments such as mutual funds and variable annuities.  Once licenses you can start getting paid.

In the end while you’re getting trained and getting your license you can work to build up your team.  The great thing about building a team is that you’ll be able to get paid a small portion of the money that they earn as well.

Risk Management and Derivatives


Slowly but surely, risk management systems are gaining in strength. We’ll time grows the systems have become widespread, settlement is normally now delivery versus payment, paper is disappearing and settlement times reducing or moving to real time, along with an increase in netting. All this reduces risk.

In derivatives, we are seeing fewer corporate, bank or be visible failures and the market seems to be much more mature. Growth continues to be strong, both in his published derivatives in a newer products such as credit repairs. There remain worries about the value at risk of statistical models of the lack of transparency in over-the-counter trading.

The first point, extreme conditions feedback a mockery of the so-called 99% copper levels. Prior to the Russian crisis, this would’ve suggested a widening of the spread on bonds generally as 200 basis points maximum. After the crisis, they widened to 900bp. Bankers Trust so that their value at risk model suggested that the value would only be exceeded on one day and 100. The problem here is that models do not take account of the possible collapse of the hedge. And Russia’s case, all forward rouble foreign-exchange deals were suspended. No model is likely to solve this problem, it’s perhaps part of the move to avoid global crisis.

Transparency is another problem. Long Term Capital Management had huge exposure to some 50 counterparties, but none of them knew of the overall exposure. The OTC market in derivatives is opaque, and some complex derivatives enable banks to overcome regulations on foreign exchange exposure. Foreign currency exposures in Mexico were much greater than was generally realized, partly for this reason. Japanese banks have used complex bond derivatives to take profits now, but push the associated losses out to 20+ years.
Under the heading of risk management comes the question of global crises and their prevention.

If you liked this financial topic then you might be interested in learning about forex training and forex education.