{"id":1259,"date":"2013-05-29T10:22:52","date_gmt":"2013-05-29T10:22:52","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/05\/finra_chief_ketchum_calls_for"},"modified":"2022-03-09T16:20:40","modified_gmt":"2022-03-09T22:20:40","slug":"finra-chief-ketchum-calls-for","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-chief-ketchum-calls-for\/","title":{"rendered":"FINRA Chief Ketchum Calls for Brokers To Better Inform Investors of Fixed Income, Structured Product Risks"},"content":{"rendered":"<p>\t\t\t\tFinancial Industry Regulatory Authority CEO and Chairman Richard G. Ketchum says that with more investors getting involved in sophisticated investments, broker-dealers must do a more thorough job of informing them of the risks involved in complex financial instruments. Speaking at FINRA&#8217;s yearly conference in DC, Ketchum said that now is when brokerage firms should be talking to clients about the possible drawbacks of having concentrated holdings in fixed-income securities that are more speculative or for a longer duration. He also talked about letting clients know that bond funds are not the equivalent of owning fixed securities directly.<\/p>\n<p>Acknowledging that it can be more difficult to train financial advisers on how to make effective disclosures to customers about structured products, Ketchum suggested that using simple language is one way that broker can provide potential investors with more information, rather than just satisfying disclosure requirements. The FINRA chief spoke about how it essential it was to sure that investors have a better comprehension of the risks involved in what they are buying. <\/p>\n<p>Ketchum also scolded financial firms for being more direct when it comes to marketing on their websites than they are with the disclosure and legal sides. He noted that providing investors with disclosures that they don&#8217;t fully understand creates more risks for the firms in the long run.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/finra-chief-ketchum-calls-for\/\"  title=\"Continue Reading FINRA Chief Ketchum Calls for Brokers To Better Inform Investors of Fixed Income, Structured Product Risks\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Financial Industry Regulatory Authority CEO and Chairman Richard G. Ketchum says that with more investors getting involved in sophisticated investments, broker-dealers must do a more thorough job of informing them of the risks involved in complex financial instruments. Speaking at FINRA&#8217;s yearly conference in DC, Ketchum said that now is when brokerage firms should be [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3739],"tags":[],"class_list":["post-1259","post","type-post","status-publish","format-standard","hentry","category-finra"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FINRA Chief Ketchum Calls for Brokers To Better Inform Investors of Fixed Income, Structured Product Risks &#8212; Investor Lawyers Blog &#8212; May 29, 2013<\/title>\n<meta name=\"description\" content=\"Financial Industry Regulatory Authority CEO and Chairman Richard G. Ketchum says that with more investors getting involved in sophisticated investments, &#8212; May 29, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/finra-chief-ketchum-calls-for\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA Chief Ketchum Calls for Brokers To Better Inform Investors of Fixed Income, Structured Product Risks &#8212; Investor Lawyers Blog &#8212; May 29, 2013\" \/>\n<meta name=\"twitter:description\" content=\"Financial Industry Regulatory Authority CEO and Chairman Richard G. Ketchum says that with more investors getting involved in sophisticated investments, &#8212; May 29, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FINRA Chief Ketchum Calls for Brokers To Better Inform Investors of Fixed Income, Structured Product Risks &#8212; Investor Lawyers Blog &#8212; May 29, 2013","description":"Financial Industry Regulatory Authority CEO and Chairman Richard G. 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Ketchum says that with more investors getting involved in sophisticated investments, &#8212; May 29, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-chief-ketchum-calls-for\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-chief-ketchum-calls-for\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"FINRA Chief Ketchum Calls for Brokers To Better Inform Investors of Fixed Income, Structured Product Risks","datePublished":"2013-05-29T10:22:52+00:00","dateModified":"2022-03-09T22:20:40+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-chief-ketchum-calls-for\/"},"wordCount":350,"articleSection":["FINRA"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-chief-ketchum-calls-for\/","url":"https:\/\/www.investorlawyers.com\/blog\/finra-chief-ketchum-calls-for\/","name":"FINRA Chief Ketchum Calls for Brokers To Better Inform Investors of Fixed Income, Structured Product Risks &#8212; Investor Lawyers Blog &#8212; May 29, 2013","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2013-05-29T10:22:52+00:00","dateModified":"2022-03-09T22:20:40+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Financial Industry Regulatory Authority CEO and Chairman Richard G. 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