Fiduciary Expert – Fiduciary Expert

Fiduciary, Securities, Compensation, Valuation, Damages Expert since 2003

Litigation Consultant & Expert Witness

FiduciaryFORENSICS™

Breach of Fiduciary Duty, Trust Litigation, FINRA Suitability, Failure to Supervise, KYC, BSA / AML violations; ERISA; Non – Profits, Foundations and Endowments disputes

Over 35 years of actual, hands-on securities industry management and independent expert experience and advanced fiduciary training.

Global Financial Crisis & Shadow Banking Expert

Securities, Futures, Precious Metals, Derivatives, Hedge Funds, Investment Adviser, Bank, Trust Company, Insurance, Annuities

Incandescent Financial Services & Securities Industry Insights

Information asymmetry may explain all or part of a claim. From the 1970’s to today, a significant change has occurred in investors including sovereign wealth funds, institutional investors, accredited, high net worth and other individual customers. Trading has shifted dramatically to ECN’s also called dark pools, high frequency algorithmic trading (HFT) to periodic auctions to ubiquitous online self-directed retail traders. Recently several participants in the securities industry have proposed their own stock exchange.

Analysis spans all touchpoints emanating from the media, social media, communications, suitability, trade executions, trade clearing, settlement, contracts, agreements, authorized or unauthorized trades, commissions, fees, expenses, PPM’s (private placement memorandums), prospectus, compensation (both hard and soft dollar) and other emoluments.

Securities brokers, Bank Trust, Fiduciary Duty, Suitability, Supervision

For decades, no matter type of account or payment by customers of fees or commissions or both, some accounts require financial advisors, (whether by an individual, team or group of financial advisors) securities broker dealers, branch managers, supervisors and series 7 licensed registered representatives and or other unlicensed representatives to provide a fiduciary duty in addition to a suitability level of care.

Fiduciary duty requires specific steps not limited to diversification; self directed accounts, for instance at discount brokerage firms may require, depending on facts and circumstances, a fiduciary duty and always require compliance with FINRA suitability and supervision rules and regulations.

*Introducing brokers, carrying, clearing or prime brokerage relationships increase the complexity of compliance with securities industry rules and regulations as well as internal supervisory policies and procedures which must be designed and implemented to protect customers and achieve compliance with SEC and or FINRA rules and or applicable state laws.

Potential Breach of Fiduciary Duty > Liability > Damages > Expert Testimony and Reports

Broker Dealers, Primary Dealers, Discount Brokerage firms, Banks, Bank Affiliates such as ILC’s (Industrial Loan Companies also known as Industrial Banks), Investment Advisers, Hedge Funds, Asset Managers, Consultants, Auditors, TPA’s, Custodians

Trades – best execution, MiFid II, confirmations, commissions, fees, rebates, order flow, order routing, agency, principal, liquidity, dark pools, algorithmic trades, high frequency trading, trade reporting; tax withholding, return of principal, dividend reinvestment

Investments – securities, commodities, futures, options, precious metals, mutual funds, closed-end funds, ETF’s, ETNs, unit trusts, insurance, annuities, derivatives, money market mutual funds, Asset backed Commercial Paper (ABCP), Auction Rate Securities (ARS), mortgage backed and related securities (RMBS, CMO’s, CDOs, CPDOs, CMBS)

Services – financial planning, managed accounts, investment consulting, brokerage, prime broker, stock loan (securities lending), hypothecation / re-hypothecation, Reg T margin accounts, Reg U non-purpose securities – based loan (SBL) accounts, market makers, proprietary trading, leverage, mark to model, mathematical models, internal risk management

Hedge funds, 144, Private placements, Reg D, Sophisticated or Accredited Investors

Domicile – US and offshore; foreign

ERISA, Custody, soft dollars, master trusts, reporting, regulatory requirements, record keepers, third party administrators (TPAs); participants’ communication materials

Account Insurance – FDIC, SIPC, Excess SIPC, (Capco Broker dealer self insurance)

Regulatory – FRB, OCC, FDIC, OTS, FINRA, SEC, NYSE, NFA, CFTC, NASAA, State Agencies

Related areas – Securities, banking, insurance – Compensation, Valuation, Employment – Recruitment, Training, Supervision, Compliance, FINRA form U-5, U-4; SEC Form Adv I and II, Wrongful termination, Raiding; Retirement, Forgivable Loans, Retention Bonuses, Retention Awards; Compensation – commissions, overrides, bonus, restricted stock and options – Stock brokers, traders, branch and regional managers, senior management, support personnel.

Anti Money Laundering – AML, BSA, USA Patriot Act, KYC and CIP.

Uniform Prudent Investor Act applies to all trust accounts, since 1996 in California (although certain aspects were already applicable.)

Customer’s accounts subject to Fiduciary Duty include but are not limited to:

Trusts – life insurance, revocable, irrevocable and charitable

IRA and IRA Rollover accounts

ERISA Defined Benefit Pension, Defined Contribution, Profit Sharing, 401k & 403b Plans

Public Employees Pension benefit and Retirement Plans

Union Pension Benefit, Retirement Plans, Taft Hartley plans

Tax exempts, 501(c)-3 – Non-profits, Charities, Foundations and Endowments (Eleemosynary organizations)

HOAs, Cemetery, Custodial, Minors (UTMA, UGMA, Coogan’s), Guardian and Conservator accounts

Divorces involving the above accounts, a spouse, financial institution third party may be responsible for poor performing assets or losses. See Divorce Fiduciary Audit™. Closely held family businesses (or those controlled by instruments such as trust, partnership or LLC) are frequently at issue in marital dissolutions.

* Note: Fiduciary Duty, if any, is in addition to, may precede and supersedes Suitability, and may arise at any time, affect any type of account, investment, insurance or asset including Real property, Copyrights, Trademarks, Patents, Intellectual property, Family or Closely held business, LLP’s, LLC’s, FLP’s, general or limited partnerships. See Real Estate Losses page for Investment / Rental Real Estate losses.

In nearly every dispute whether trust or non-trust account, IRA, ERISA pension retirement benefit plan, charity, non-profit, foundation or endowment account, at the outset parties form a trusting relationship, promises are made, expectations are created, reliance and often complacency can take root, disappointments occur, communication wanes, account values continue to suffer, risks increase, prudence gaps manifest then arbitration claims or lawsuits are filed.

It’s best if we can be retained prior to the establishment of the new account (or new advisory) relationship to help prevent these types of situations When lawsuits or claims are contemplated we prefer to be involved at the earliest opportunity prior to filing.

For concerns related to breach of fiduciary duty, self-dealing, conflict of interest or malfeasance or violations of FINRA or SEC securities industry rules and regulations please contact us.

contact@fiduciaryexpert.com or (310) 943 – 6509

FiduciaryFORENSICS™ is a pending internationally registered trademark of Chris McConnell & Associates