The latest compliance issues in wealth management across North America.

FINRA
A FINRA arbitration panel has ordered Woodbury Financial Services to pay a former NFL player and his wife more than $1 million in compensatory damages and interest for failing to supervise a former employee.

Clients Kris and Sandy Dielman say Woodbury breached fiduciary obligations regarding know-your-customer rules and misrepresented them as clients after failing to properly supervise former broker Robert Hayes Hoffmann, according to the FINRA arbitration award. 

Kris Dielman played nine seasons in the NFL for the San Diego Chargers.

The misrepresentation is related to real estate and coal investments. Since Hoffmann filed for bankruptcy in federal court in February, the panel did not rule on claims against him.

The total $1,091,575 award to the clients comprised of $970,107 in compensatory damages and $121,468 in pre-judgment interest, per the award.

SEC
The  Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC) have signed a Memorandum of Understanding (MOU) that will help coordination and information sharing between the two agencies.

The MOU updates and enhances a 2008 MOU to make it more relevant in the current market environment and promote efficiency in rulemaking, regulatory oversight, and enforcement.