Product Understanding is Essential

Selling a product without product understanding misses the mark and often causes losses for Broker/Dealers and their Registered Representatives. Read below to see how a simple lack of product understanding led to large losses:

If it was not Documented, it Didn’t Happen!

For Registered Representatives, documentation is key to loss prevention. Read on to find out why:

Ensure Funds Are Invested as Requested

Registered Representatives can help themselves avoid loss and reduce exposures using a few simple tips. Try using the below loss prevention tip to improve your risk management strategy:

Don’t Overpromise and Under Deliver

Making false promises is not only detrimental to a firm’s reputation, but can also lead to E&O exposures. Below are a few ways to ensure you are preventing E&O exposures when it comes to serving clients and expanding business:   

Complete, Accurate and Timely

“The thing about information is that information is more valuable when people know it.”

Find out how communication can help prevent E&O claims for Broker/Dealers and their Registered Representatives:

Happy 4th of July!

The SEC and Courts May Consider Events Outside the Five Year Statute of Limitations in Crafting Enforcement Sanctions

By Andrew Dorman and Chetan Patil, Reminger Co., L.P.A.

As a result of the 2008 financial crisis, industry oversight and regulation by the Securities and Exchange Commission ("SEC") has increased significantly.  One aspect of this oversight has focused on a firm or individual's duty to ensure overall compliance, which is a distinct obligation under federal securities laws.  The importance of complying with FINRA and SEC rules was underscored by a recent court ruling that broadened the scope of potentially sanctionable activity to past supervisory violations. Read More…

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CalSurance Associates, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

How to Select the Right Coverage- Broker Dealer E&O

When it comes to Errors & Omissions Insurance, not all policies are created equal. Similar premiums do not guarantee similar coverage. Policies may renew with important changes that affect your coverage. Follow these steps when selecting or renewing your E&O policy.

“Never Put Off Till Tomorrow What You Can Do Today”

Simple tip for Registered Representatives to reduce risk: Stop Procrastinating! Read on to find out how procrastination could cost you money:

Do Broker/Dealers Need to Offer Clients Better Protection from Data Theft?

The Securities and Exchange Commission (SEC) recently announced its plan to review 50 or more investment firms to learn how they protect their electronically stored data. As regulators look for ways to ensure better protection against data theft, firms can benefit from doing the same.

Below are a few things to consider when reviewing your firm’s data protection practices:

Find out what data protection methods your firm employs.  

You can instill confidence in clients who inquire about how their information is stored and protected by understanding the data protection methods used by your firm. If a client asks a question like, “What forms of identification are used to access my personal identifiable information?” you should be able to provide an answer.

Learn what compensation, if any, is available to clients who suffer a loss as a result of data theft.

Recent cyber breach reports may alarm customers, making them more concerned about what they can expect in the event of a breach. Be prepared for potential customer questions like: “Do you reimburse customers for losses related to data theft?”

Be aware of any fines or other regulatory actions against your firm related to data theft.

Even well protected corporations have suffered a cyber breach. If your firm has experienced a breach, be prepared to address this with customers who have concerns. If your firm has since improved its protections against data theft, consider explaining this to customers to relieve their concerns.

By evaluating data protection practices, firms can stay in compliance with regulators and instill confidence in customers. Even if Broker/Dealers don’t believe their firm will be subject to the SEC’s review, this can be an opportunity for firms to find out how their data protection methods measure up against industry peers.

All information provided in this blog is for informational purposes only. The sources used are presumed accurate. CalSurance Associates, Brown & Brown Program Insurance Services, Inc. and Brown & Brown, Inc. will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use and will not assume responsibility for any misguided information. No guarantees are implied.

Free Webinar: Tune in this Wednesday, June 4th

Webinar Reminder: Tune in this Wednesday, June 4^th at 10:00 AM PDT for our latest webinar, Recent Developments in Financial Institution/FINRA Claims, hosted by Lancer Claims Services, a division of Brown & Brown Program Insurance Services, Inc. Click here to add webinar to calendar.

A Quick Note About Documentation

When it comes to loss prevention, insurance agents and advisors alike have probably heard the term “Document, Document, Document!” more times than they can count. Although this seems like a simple and straight forward business practice (and important loss prevention strategy), it continues to be a source of claims brought against financial professionals.

So here is a quick review of what constitutes “good documentation”:

New Webinar Announcement! Recent Developments in Financial Institution/FINRA Claims

Topic: Recent Developments in Financial Institution/FINRA Claims

Hosted By: Lancer Claims Services, a division of Brown & Brown Program Insurance Services, Inc.

Presenters: Sam Edgerton and Chad Weaver, Edgerton & Weaver, LLP

Date: Wednesday, June 4th 2014

Time: 10:00 AM - 11:00 AM PDT

Click here to register!

Listen Live: Tune in on Wednesday, June 4^th at 10:00 AM PDT for a one hour live webinar presented by Edgerton & Weaver, LLP. Add webinar to calendar.

SEC Cyber Risk Exam Guidelines- Would your Firm “Pass the Test”?

The SEC’s Office of Compliance Inspections and Examinations (OCIE) recently released a cyber security exam checklist to help firms assess the strength of their cyber security controls. This checklist, along with the SEC’s plan to examine cyber security preparedness at more than 50 broker-dealers and investment advisors, is yet another example illustrating a push towards tighter monitoring and possibly more regulation of cyber security from financial industry regulators.

All in a Day’s Work

Are you a Registered Rep who employs an assistant? If so, continue reading to find out how checking your assistant’s work can sometimes make the difference in avoiding large E&O claim costs.

Are you turning down prospects?

Are you turning down prospects? If you’re not using social media, then the answer is likely yes! Yes, you are passing up the opportunity to communicate with potential clients. Yes, you are turning down interested parties looking to learn more about your products and services. And yes, you are excluding a large portion of your customer base.

Don’t Touch My Stock!

Registered Representatives can help themselves avoid loss and reduce exposures using a few simple tips. Read on to learn more about how timely documentation can mitigate risk:

CalSurance® and Fireman’s Fund Award Grant to High Point, North Carolina Fire Department

CalSurance® and Fireman’s Fund are happy to have awarded the High Point Fire Department with an $18,758 grant through the Fireman’s Fund Heritage Award Grant program. CalSurance Associates and Fireman’s Fund have had a valued relationship with Smart Choice® who played an important role in recommending the High Point Department for this grant. The funds were used to purchase 8 fully outfitted bikes for the High Point Fire Department Bike Team. The new bikes carry the same equipment found on fire trucks, including AEDs, oxygen and other life support tools. With these new bikes, firefighters will have better mobility and patrol capability during High Point’s large scale events, including the International Home Furnishings Market.

Grant presented to Fire Chief Thomas Reid. Ross Jordan, CalSurance Associates (Left),Thomas Reid, High Point Fire Department (Center), Gary Mann, Fireman’s Fund (Right), Monday, March 10^th 2014.

Tips to Tip the Scale in Your Favor

Tips to Tip the Scale in Your Favor- Insurance Agents

Content is King

Providing clients with information about their policy is not only a valuable loss prevention tool, but also a valuable marketing tool. Clients want to know they can trust their agent with their insurance needs. By taking the time to share your knowledge, clients feel additional security and place additional trust in your ability to procure coverage. Not only does this improve customer retention, but also the likelihood of a referral.

Dollars vs. Shares

Registered Reps can improve risk management by incorporating simple habits and small changes into regular business practices. Below is a claim scenario that may be all too common for some of you Registered Reps out there. Read on to find out how this could have been avoided:

FINRA BrokerCheck- New Rules Coming?

At its recent board meeting, the Financial Industry Regulatory Authority (FINRA) discussed a number of proposed rules, including one that would essentially increase visibility for BrokerCheck on firm websites and communications.

Debunking Common Myths about E&O Coverage

1. I document all my business transactions so I’m protected should a claim arise.

Although you may utilize a traditional or online filing system, many agreements or promises made regarding the sale of an insurance product are completed verbally, by telephone or in person. Often times, these conversations, or portions of the conversation, remain undocumented. As a result, a large number of E&O claims become a “he said, she said” scenario that can result in losses for an agent. In this instance, E&O insurance would help agents pay for legal or settlement fees associated with a claim, lawsuit and/or litigation.

Order Refused

Registered Representatives can help themselves avoid loss and reduce exposures using a few simple tips. Below is the first in a series of loss prevention techniques we will be providing on our blog to help Registered Reps identify ways to improve their risk management strategy.