The Financial Industry Regulatory Authority (FINRA) is set to implement a new rule that will relieve brokerages of the duty to monitor their advisors’ outside business activities. This rule change will allow advisors to engage in side hustles such as bartending or driving for services like Uber without the need for constant supervision.
In addition to this, a recent amendment is also expected to alleviate brokerages of the responsibility to continuously monitor transactions placed by dually registered advisors through unaffiliated Registered Investment Advisor (RIA) firms. This move aims to reduce the regulatory burden on brokerages and streamline the supervision process.
The initial proposal by FINRA aimed to relax brokers’ duty to monitor non-investment related activities undertaken by their advisors. The goal was to increase investor protection while decreasing the administrative burden on brokerage firms. However, brokerages expressed concerns over the provision that would require them to supervise advisors who conduct securities orders through unaffiliated RIAs.
In response to these concerns, FINRA adopted an amendment that would only require upfront approvals of proposed trading activities with no ongoing obligation for monitoring. This change has been welcomed by industry experts, including Brian Hamburger, founder of MarketCounsel Consulting and The Hamburger Law Firm, who believes that the amended proposal appropriately allocates supervision obligations between registered firms.
While brokerages have welcomed the relief from monitoring advisors’ non-securities-related side hustles, there are still concerns over the impact on revenue streams. Many firms charge a fee for supervisory services provided to unaffiliated RIAs, and the new rule may affect their ability to justify these fees.
The Securities and Exchange Commission (SEC) will soon open a 90-day comment period on the proposed FINRA rule. While broker-dealers have addressed many of their concerns regarding monitoring unaffiliated RIAs, there are ongoing debates about the implications of relaxed supervision on advisors’ outside business activities.
Critics argue that less monitoring of outside activities could pose risks to investors. Adam Gana, former president of the Public Investors Advocate Bar Association, raised concerns about advisors using client funds for personal business ventures. Douglas Schulz, president of Invest Securities Consulting, highlighted the conflict of interest that advisors with outside businesses may face, potentially putting clients’ interests at risk.
Overall, the proposed FINRA rule changes have sparked discussions within the industry about the balance between regulatory oversight and investor protection. As the SEC evaluates the rule, stakeholders will continue to debate the implications of relaxed supervision on advisors’ outside activities.
(Source: Here)
The Importance of Proper HTML Structure
When it comes to creating a well-organized and easily navigable website, the structure of your HTML code plays a crucial role. By utilizing the <h2> and <h3> tags effectively, you can create a hierarchy that not only aids in search engine optimization but also improves the overall user experience.
Utilizing <h2> Tags for Main Headings
The <h2> tag is typically used for main headings on a webpage. These headings should be descriptive and succinct, providing a clear indication of the content that follows. By using <h2> tags for your main headings, you not only improve the readability of your content but also signal to search engines the importance of these sections.
Creating Subheadings with <h3> Tags
While <h2> tags are reserved for main headings, <h3> tags are ideal for subheadings within those sections. By breaking down your content into smaller, more digestible chunks, you can make it easier for users to scan and navigate your website. Additionally, using <h3> tags helps search engines understand the structure and hierarchy of your content, improving your chances of ranking higher in search results.
Avoiding Keyword Stuffing and Thin Content
One common mistake that many website owners make is keyword stuffing, or the practice of excessively using keywords in an attempt to manipulate search engine rankings. Not only is this tactic ineffective, but it can also harm your website’s credibility and reputation. Instead, focus on creating high-quality, relevant content that provides value to your readers.
Similarly, thin content, or pages with little to no substantive information, can also negatively impact your website’s SEO. By ensuring that each page on your site contains well-structured, informative content, you can improve your chances of ranking higher in search results and attracting more organic traffic.
Emphasizing Clarity and Originality
When structuring your HTML code with <h2> and <h3> tags, it’s essential to prioritize clarity and originality. Your headings and subheadings should accurately reflect the content that follows, providing users with a clear roadmap of what to expect. Additionally, strive to create unique and engaging content that sets your website apart from the competition.
Creating Useful and Engaging Content
Ultimately, the goal of structuring your HTML code with <h2> and <h3> tags is to create a user-friendly experience that encourages visitors to explore your site further. By organizing your content in a logical and hierarchical manner, you can guide users through your website seamlessly, helping them find the information they need quickly and easily.
Remember, the key to successful SEO is to provide valuable, relevant content that resonates with your target audience. By focusing on creating useful and engaging content and structuring your HTML code with <h2> and <h3> tags, you can improve your website’s visibility in search results and attract more visitors to your site.
