Sales of so-called "smart beta" funds, the fastest-growing segment of the exchange-traded fund (ETF) market, are among the issues that Wall Street's private watchdog will review in its 2015 examinations of U.S. brokerages, the regulator said on Tuesday.
The Financial Industry Regulatory Authority (Finra), is concerned about how varying market environments could affect indices tied to the funds' performance, the regulator said in its annual list of "examination priorities," published on Tuesday. The funds are appearing on Finra's list for the first time this year.
Among other new concerns that Finra will examine this year: firms' marketing practices for a growing number of loan products that allow investors to use their securities as collateral. Investors typically use the loan proceeds to buy second homes, luxury items or pay expenses, Finra said.
Finra To Target Smart-Beta ETFs In 2015 B-D Exams
January 6, 2015
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Good for FINRA! Punish those people who may cost investors a few hundred to few thousand bucks. Bravo! Meanwhile, investors may be paying hundreds of thousands to north of a million extra (in today's dollars) for health costs. Why/how? Because Wall St. and the advisory community do not understand how income factors into your health. But hey, let's punish the minor 'crimes' and ignore what will really hurt investors. More taxes, lower net Social Security retirement income, etc. But don't worry... the trainee guide and the pundits keep telling all who will listen that there will be a giant wealth transfer. This is a great tool to explain what I'm talking about. www.yourretirementcosts.org.