Vernon Litigation Highlights SEC Priorities for 2017
Earlier this month, the Securities Exchange Commission (“SEC”) announced its 2017 examination priorities and Chris Vernon of Vernon Litigation Group anticipates that he will be filing more FINRA arbitration cyber-related claims against brokerage firms and other financial institutions in 2017.
Earlier this month, the Securities Exchange Commission (“SEC”) announced its 2017 examination priorities. Vernon Litigation Group is glad to see the SEC’s focus on the rampant financial exploitation of retirees, which entails both the securities and insurance industry. Vernon Litigation Group also agrees with the SEC’s decision to make cybersecurity a top priority and believes that brokerage firms and advisors who are negligent in guarding their clients’ private information will and should be held accountable.
According to Vernon Litigation Group’s founding partner Chris Vernon, with respect to the financial exploitation of retirees, “the use by the financial industry of its own client base as a source of borrowing and lending is a huge and growing issue and represents a massive conflict of interest.” The problem is that both the lending to and borrowing from clients is done in such a way that favors Wall Street at the expense of investors. On the lending side, financial institutions are encouraging loans collateralized by client portfolios, which protects the firm while having devastating effects on a client if interest rates rise or markets drop. On the borrowing side, financial institutions use structured products to borrow money from their own clients on terms that institutional investors would not even consider. Vernon notes that viewing the combined push by Wall Street firms to loan money to clients and simultaneously borrow money from clients exposes just how abusive financial institutions continue to be with their own clients and their clients' portfolios.
With respect to the cybersecurity issue, Vernon predicts that Financial Advisors will be held liable for gathering too much information from clients (in an effort to find ways to get more assets from and to sell more services to clients) and then failing to protect that information from cyber thieves. Vernon anticipates that he will be filing more FINRA arbitration cyber-related claims against brokerage firms and other financial institutions in 2017.
About Vernon Litigation Group
Vernon Litigation Group is based in Naples, Florida, with additional offices in Orlando, Florida, and Atlanta, Georgia. One of Vernon Litigation Group’s missions is to assist in the recovery of client losses caused by financial fraud and negligence. Vernon Litigation Group handles all types of financial litigation, including investment-related disputes involving securities such as bonds, hedge funds, annuities, and REITs. Its financial litigation and arbitration services help investors fight against negligent and fraudulent securities and insurance companies.
For more information, contact:
Vernon Litigation Group
Phone: (239) 319-4434
Name: Chris Vernon
Organization: Vernon Litigation Group
Address: 999 Vanderbilt Beach Road Suite 200 The Fifth Third Center, Naples, 34108 United States
For more information, please visit https://vernonlitigation.com/
Release ID: 164561