Suitability Considerations and Sales Practices for Senior ...

Suitability Considerations and Sales Practices for Senior Investors Friday, October 21 9:45 a.m. ? 10:45 a.m.

When serving senior clients, it is important for a firm's procedures and controls to properly gauge the suitability of recommendations to senior investors and ensure clear, straightforward sales practices. This panel of experts examines the FINRA suitability rule (2111), the rule's potential interplay with cognitive decline, the importance of ensuring client understanding of risks and other issues of which firms should be aware.

Moderator:

James S. Wrona Vice President and Associate General Counsel FINRA Office of General Counsel

Panelists:

Cara Aber Executive Director & Assistant General Counsel J.P. Morgan Securities LLC

James Muir Executive Director, Investments Compliance USAA

Aisling Murphy Senior Compliance Manager Vanguard Group, Inc.

Donald Runkle Regulatory Compliance Director Coordinated Capital Securities, Inc.

? 2016 Financial Industry Regulatory Authority, Inc. All rights reserved. 1

Suitability Considerations and Sales Practices for Senior Investors Panelist Bios:

Moderator:

James S. Wrona is Vice President and Associate General Counsel for FINRA in Washington, DC. In this role, he is responsible for various policy initiatives, rule changes and litigation regarding the securities industry. Mr. Wrona formerly was associated with the law firm of K&L Gates LLP, where his practice focused on complex federal litigation. He also previously served as a federal law clerk for the Honorable A. Andrew Hauk of the United States District Court for the Central District of California (Los Angeles). Mr. Wrona is a frequent speaker at securities and litigation conferences and author of numerous law review articles, including The Best of Both Worlds: A Fact-Based Analysis of the Legal Obligations of Investment Advisers and Broker-Dealers and a Framework for Enhanced Investor Protection, 68 Bus. Law. 1 (Nov. 2012); The Securities Industry and the Internet: A Suitable Match?, 2001 Colum. Bus. L. Rev. 601 (2001).

Panelists:

Cara Aber is Executive Director and Assistant General Counsel with J.P. Morgan Securities. Ms. Aber has more than 21 years of experience in the Securities Industry including several years in a litigation role and for the last 15 years as a legal advisor to private client wealth management divisions. She began her career at Bear Stearns & Co where she became a Managing Director advising the Private Client Services business on broker-dealer laws, rules and regulations as well as on transactional reallife/real-time risk assessment and determination decisions. For the last several years she has advised J.P. Morgan's Global Wealth Management division and has been the primary point of contact for her line of business for a number of client segments including Senior Investor/Vulnerable Adult, ADA, SCRA, and UDAAP client issues, policies, procedures and escalation through resolution. Ms. Aber is a member of a number of firm wide J.P Morgan internal working groups covering Senior Investor/Vulnerable Adult initiatives and the assessment and implementation of policies and procedures related to new laws, rules, regulations and best practices. She is an active participant of several industry groups including the SIFMA Senior Investor Working group. Ms. Aber is a graduate of Brandeis University and received her J.D. from St. John's University School of Law.

James Muir is currently an Executive Director in USAA's Investments Compliance Department and focuses primarily on issues pertaining to investments distribution. Prior to his current role, Mr. Muir was a senior attorney in USAA's Financial Advice and Solutions Group supporting USAA's securities and investment advisory businesses. Before joining USAA in 2014, Mr. Muir spent over 14 years at The Bank of New York Mellon Corporation in various compliance and legal roles. Most recently, Mr. Muir was a Senior Counsel and Managing Director with responsibility for providing advice on all aspects of product distribution, including mutual funds, hedge funds and managed accounts, and he supported a BNY Mellon broker-dealer/investment adviser firm as its Chief Legal Officer. Prior to BNY Mellon, Mr. Muir held compliance roles at Prudential Financial, including in Newark, New Jersey and Jacksonville, Florida. Mr. Muir is in the U.S. Army Reserve and is currently assigned to a unit at Fort Sam Houston, Texas.

Aisling Murphy is Senior Compliance Manager responsible for broker-dealer compliance at Vanguard. She and her team are responsible for brokerage trading and operations, advertising compliance, retail distribution, sales and marketing, and licensing and registration. Prior to joining Vanguard in April 2015, Ms. Murphy held legal and compliance roles supporting broker-dealer, advisor services, and investment advisory activities at Edward Jones and Scottrade Inc. Ms. Murphy began her career as a criminal and civil litigator in St. Louis, Missouri. Ms. Murphy is a member of the SIFMA Compliance and Regulatory Policy Committee. She obtained her B.A. in English Literature from the University of Dallas in 1998 and her J.D. from St. Louis University in 2002.

Don Runkle is the Regulatory Compliance Director for Coordinated Capital Securities, Inc., and he is also the Director of Consulting Services with Edgerton & Weaver, LLP. Mr. Runkle works with brokerdealers, investment advisers, and registered representatives to develop, implement, and execute strategies to mitigate or eliminate their litigation and regulatory risks. In his role with Coordinated Capital Securities, he helps to ensure that the firm has appropriate processes and procedures to exceed all regulatory requirements and manage risks in an efficient and effective fashion. He also

? 2016 Financial Industry Regulatory Authority, Inc. All rights reserved. 2

assists with the execution of all procedures as necessary, including support functions in examinations, regulatory inquiries, customer complaints, options activities, municipal bond activities, new and ongoing product reviews, suitability analyses, and general operational and compliance functions. Mr. Runkle was previously the Chief Compliance Officer for Raymond James Financial Services, Inc., in St. Petersburg, Florida. He has more than 25 years of experience in the financial services industry, having worked as a financial advisor and in several compliance-related roles. Mr. Runkle has been an active leader in numerous industry associations and regulatory committees. He currently serves on the FINRA Membership Committee, and he was previously elected to two terms on the FINRA District 7 Committee. He has also served on the FINRA Regulatory Advisory Committee, the SIFMA Compliance and Regulatory Policy Committee, the FSI Compliance Council, and the SIFMA Compliance and Legal Society's Regional Firms Committee. Previous industry involvement also includes the FINRA Compliance Resources and Education Committee, the FINRA Books and Records Task Force, the NASD Licensing and Registrations Council, the SIFMA Self-Regulations and Supervisory Practices Committee, the SIFMA State Regulation and Legislation Committee, and the IAFP Compliance Advisory Council. He holds numerous industry licenses, including the Series 7, 24, 53, 4, 63, 65, and previously obtained the Florida Life and Health insurance license. Mr. Runkle also completed the Securities Industry Institute at the University of Pennsylvania Wharton School in 2004, and he has been a FINRA arbitrator since 1998.

? 2016 Financial Industry Regulatory Authority, Inc. All rights reserved. 3

2016 FINRA/SIFMA Senior Investor Protection Conference October 20-21, 2016 ? Washington, DC

Suitability Considerations and Sales Practices for Senior Investors

Panelists

Moderator

James S. Wrona, Vice President and Associate General Counsel, FINRA Office of General Counsel

Panelists

Cara Aber, Executive Director & Assistant General Counsel, J.P. Morgan Securities LLC

James Muir, Executive Director, Investments Compliance, USAA Aisling Murphy, Senior Compliance Manager, Vanguard Group, Inc. Donald Runkle, Regulatory Compliance Director, Coordinated

Capital Securities, Inc.

1 FINRA / SIFMA Senior Investor Protection Conference ? 2016 FINRA. All rights reserved.

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