JULY 10, 2015
Compliance consultant Cathy Vasilev answered a call about a month ago from a financial advisor who asked her to review his sleek new website.
After a quick look, Vasilev urged him to immediately take it down. The site included claims such as, “Tired of losing money in the stock market? We can fix that.” It also featured videos of the advisor giving seminars, in which he discussed good stock picks he’d made. The site had almost no disclosures.
“He had proof on his website of all the non-compliant things he’d been doing,” said Vasilev, who co-founded Red Oak Compliance Solutions in Cedar Park, Texas.
Many advisors prioritize marketing over compliance on their websites, leaving them open to lawsuits from disgruntled clients and regulatory actions.