Changing the Rules of The Game

FINRA recently under went a retrospective review of their communications with the public rule and issued a proposed rule that would allow broker-dealers, under a limited set of circumstances, to use projected performance.  While this is certainly a step in the right direction, those of us involved in the sale of alternative investment strategies would certainly argue that this proposal has not gone far enough. 

Gatekeepers

The Gatekeepers

First, let me explain what a gatekeeper is.  Since many of us don't have the time or expertise to manage our own money we use the services of a financial advisor (FAs) or a private banker to help us make our investment decisions. Likewise, gatekeepers are “financial intermediaries” that represent large institutional investors, such as the Florida Board of Administration, Ford Motor Company, or New York University.