Tag Archives: Regulations

Conversations With Conservatives

12 Wednesday Apr 2017

Posted by in Aging, Business, Crisis Management, Customer Service, Ethics, Generational, Government, Government Regulation, Health, Higher Education, History, Honor, Politics, Public Image, Public Relations, Taxes, Technology, US History

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Recently I have had a couple of face-to-face, civil conversations with conservatives. The conversations gave me a better understanding of how Donald Trump and the Republican party have managed to stay in power for the last 37 years.

The Issues
Among the issues we discussed:

  • Finance regulation:  Banks unethical practices
  • Housing inflation:  Housing prices increasing too fast
  • Economy:  Not growing fast enough
  • Jobs:  Not enough good paying jobs
  • Healthcare:  Taking care of people who can’t afford healthcare, keeping healthcare costs down
  • Drug pricing:  Prescription drug unfettered pricing

Government or Business Corruption?
There are many more issues; however, the ones discussed offer insight to the driving attitude of conservatives. It was not surprising that conservatives believe that the government is inherently corrupt. They also have an unshakable opinion that business and capitalism are the solution to almost every social and/or economic problem.

When asked about the above issues, conservatives will automatically assume the problem can be attributed to government corruption, interference, or mismanagement. They also believe that government is holding back, or preventing from business solving the problem.

It is admirable that most conservatives don’t need, nor care if their opinions have no proof, or facts to support their position. Even when it is apparent that business is/was the cause of the problem, conservatives have the ability to double down on the fallacy and ignore anything that contradicts their opinion.

Cause of the Housing Crisis: Business as Usual Unethical

Regulation:  The False Enemy
In one conversation I was told of how a bank sold the fixed rate housing loan of this person to another bank and the new bank raised the interest rate without the consent of the owner. Though the person kept paying on the loan, they were finally told that they were in arrears on the loan because they had failed to pay the additional interest on the new loan. Ultimately, the person was forced into either spending thousands of dollars on legal fees, or walking away from the house.

Three factors are key to this situation. First is the greed of the banks to make more money for the investors. Second is the lack of ethics by the bank. Finally, the lack of government oversight over the banks to prevent them from selling the loan, remaking the loan, and then forcing the homeowner into foreclosure.

Business was the corrupt party in this situation, and a lack of government oversight was the contributing factor; however, to the conservative, this was another example of a corrupt government.

NEXT:  The Thirty-Seven Year Lie

Does FINRA Prohibit Social Media Activity for Investment/Financial Firms?

19 Thursday May 2011

Posted by in Branding, Business, Communication, Customer Relations, Customer Service, Ethics, Information Technology, Internet, Management Practices, Public Relations, Social Interactive Media (SIM), Social Media Relations

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USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype: 775.624.5679]

Paul Kiser

Last year I managed to offend some investment and financial professionals when I said that their industry would have to engage in Social Media, including blogs, if they were going to stay competitive. They told me that their firms and industry regulations prohibited them from using Social Media tools in their business practices. They also said that some firms that prohibited personal involvement in Social Media. The reaction during and after the meeting was one of a strong denial of the usefulness of Social Media in their industry mixed with a ‘kill-the-messenger’ attitude. It was a typical response by business people who have been blindsided by Social Media.

…Professionals that rely on personal contact and personal relationships are finding that effective use of Social Media is key to maintaining and growing their business.

It is hard to start a dialogue with business professionals on how to use Internet tools such as blogging, Facebook and Twitter when the attitude is that Social Media are an encompassing evil that must be avoided, or at the very least, ignored. The problem, and opportunity, is that business professionals who can use Social Media to engage with others will have an advantage over those who are mystified, or more typically, scared by the power of Social Media. Professionals that rely on personal contact and personal relationships are finding that effective use of Social Media is key to maintaining and growing their business.

The fact is that since that meeting many investment related firms have changed their positions by at least 90° and some have done a 180° shift in their attitude about Social Media in business. That is not surprising considering that their future is at stake; however, investment firms do have strict guidelines on advertising and investment advisement, so using Social Media is not the ‘anything goes’ environment for which most of us are accustomed.

Both the Securities Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA)[1] are charged with protecting investors by establishing rules to govern investment-related activities. Among those rules are requirements for firms on educating, monitoring, supervising, and document the activities of brokers representing their company. In January 2010, FINRA issued Regulatory Notice 10-06 titled Social Media Web Sites – Guidance on Blogs and Social Networking Web Sites. This notice did not prohibit firms from engaging in Social Media activity, but rather offered common-sense guidelines for investment firms on how Social Media tools could be used to meet FINRA and SEC requirements.

(End of Part I)

(Note: Part II will be posted by 5 PM PDT, Monday, May 23rd)

[1] FINRA is the largest independent regulator for all securities firms doing business in the United States. FINRA’s mission is to protect America’s investors by making sure the securities industry operates fairly and honestly. All told, FINRA oversees nearly 4,550 brokerage firms, about 163,500 branch offices and approximately 631,110 registered securities representatives. (From About FINRA at www.finra.org.)

(This article is advisory in nature and the author does not represent the Financial Industry Regulatory Authority (FINRA,) the Security and Exchange Commission (SEC), nor any federal or state regulatory authority. The opinion expressed should not be considered as a legal or official position regarding the use of Social Media tools in industry practices.  The author has sought out publicly available relevant documents and information as the basis for the opinions expressed; however, final authority on the issues discussed in this article rests with the appropriate government, regulatory, and/or company division that oversees the area of concern.)