The Securities Litigation Expert Blog

Videotaping of Sales to Senior Investors

Posted by Jack Duval

Feb 14, 2013 4:20:14 AM

This is the first of a series of blog posts examining the protection of senior investors.

Videotaping of sales meetings with senior investors is emerging as a best practice in securities and insurance products sales.  A LifeHealthPro article addressed this issue (LHP):

Said Marc Silverman, head of Silverman Financial, “You’d be amazed by how many non-lawsuits there are when you record sessions.”

Burke Christensen, a business and insurance law professor at Eastern Kentucky University, also supported the idea of videotaping client meetings. “The question of competency arises [only] after the client is incompetent. The jury sees the ailing person and assumes they were that way when transaction took place,” he said.

Furthermore, the regulators are mandating some videotaping. In the recent AWC with David Lerner Associates (DLA), Finra required the following:
I. DLA must adopt procedures for the supervision and internal approval by an appropriately qualified registered principal of all seminars. Such procedures must include, but are not limited to, a requirement, effective for three years from the date on which this Offer is accepted, that the firm make and retain (a) an audio record of any seminar with expected attendance of more than 25 individuals; and (b) an audiovisual record of any seminar with expected attendance of more than 50 individuals.

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Topics: FINRA, David Lerner Associates, Investment Advisors, litigation, Senior Investors, investments, videotaping, SEC, Compliance, regulation.

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