Regulatory & Compliance: Off-Channel Communications and Complex Products

10/16/23 • 27 min

Kenneth Cherrier of F&G interviews Kendra Cain of Arvest and Kevin Larson of Cetera Financial Group on two topics making a splash in regulatory and compliance right now: off-channel communications and complex products through a Regulation Best Interest (Reg BI) lens.
Listen to this podcast episode on your way to the BISA Regulatory & Compliance Summit, November 13 - 14, the event bringing together program executives and compliance officers from across the bank insurance and securities industry to learn about and discuss pressing regulatory and compliance issues.
Key topics discussed:

How staff communication is handled at their organizations
If their organizations place restrictions on which digital communications to allow
What information security requirements are considered when implementing new communication channels and vendors
A few thought experiments on complex products — including whether an RR should be compensated more for additional complex product training; must a client fully understand all functionality of a complex product; and what steps BDs and RRs take when selling complex products to meet Best Interest requirements

About Kenneth Cherrier
As the CCO for Fidelity & Guaranty, Kenneth is responsible for the firm’s day-to-day Enterprise Risk Management function and has held numerous positions with prior firms in senior executive-level roles. Taking a “stewardship” approach to the industry, Kenneth acts as a FINRA arbitrator and is/has been an active member of numerous industry associations, such as NSCP, FSI, BISA, and CEFLI. He has sat on the Board of the NSCP, has thrice served as a member of the FINRA District 4/Midwest Regional Committee, and sat on FINRA’s Regulatory Affairs and Continuing Education Committees.
About Kendra Cain
Kendra serves as chief compliance officer at Arvest Wealth Management. She is an Accredited Investment Fiduciary (AIF®) and a Certified Regulatory and Compliance Professional (CRCP®). Kendra is also a member of the Bank Insurance and Securities Association's Regulatory and Compliance Education Committee. She has over 20 years of industry experience and has worked at other regional broker-dealers and investment advisors in various roles, including CCO and Director of Compliance and Operations. Kendra graduated from the University of Louisiana at Lafayette and resides in Lafayette, Louisiana.
About Kevin Larson
Kevin joined Cetera Investment Services in 2014 as the Chief Compliance Officer. In that capacity, he oversaw all compliance functions of Cetera Investment Services. He currently works within Risk Management at Cetera Financial Group. He is actively engaged in BISA and IRI to help provide education and act as a resource to banks and credit unions in this profession. Prior to joining Cetera, Kevin was the Chief Compliance Officer and Anti-Money Laundering Officer for a regional broker-dealer for seven years. Kevin holds his Series 7 and 24 licenses and received a Bachelor of Science degree in Marketing from Saint Cloud State University

BISA is the leading financial services industry association dedicated to serving those responsible for the marketing, sales and distribution of securities, insurance and other financial products and advisory services through the bank channel.

How staff communication is handled at their organizations
If their organizations place restrictions on which digital communications to allow
What information security requirements are considered when implementing new communication channels and vendors
A few thought experiments on complex products — including whether an RR should be compensated more for additional complex product training; must a client fully understand all functionality of a complex product; and what steps BDs and RRs take when selling complex products to meet Best Interest requirements

Previous Episode

Portfolio Podcast Episode 16: The Evolution of the Wealth Client

Truist's Jacinda Norvell and Huntington's Mike Miroballi, BISA president, join host Jeff Hartney, BISA executive director, to discuss how the typical wealth client is evolving and changing. Here are a few highlights you won't want to miss in this episode of the BISA Portfolio Podcast:

How the needs and expectations of the wealth client have changed
Effective strategies to meet clients at different life stages
Ensuring clients receive tailored financial solutions
How to leverage technology to enhance the client experience
Ensuring inclusivity and accessibility
Providing value-added services to address client life goals
Wealth transfer and intergenerational planning for high-net-worth families

About Jacinda Norvell
Jacinda Norvell is a senior managing director and the wealth brokerage sales execution director for Truist Wealth and Trust Investment Services, Inc. offering over 25 years of financial services experience. Prior to joining SunTrust, now Truist, in 1997, Jacinda obtained both retail brokerage and institutional investment experience at The Robinson Humphrey Company and Invesco. Having worked in various management roles at SunTrust, now Truist, Jacinda currently leads sales enablement efforts for their broker/dealer focused on advisor recruiting and retention, business planning and execution for managers and advisors, and development and DEI initiatives.
About Mike Miroballi
As president of the Huntington Investment Company, Michael Miroballi is responsible for leading the strategic direction, overseeing regulatory governance and setting priorities for the business.

Michael joined Huntington in February of 2017 after spending nearly 16 years at BMO Financial Group. He has over 30 years of experience in financial services. Michael spent the early part of his career with Merrill Lynch and Citigroup as a financial advisor. He obtained his CFA designation in 2000 and transitioned to portfolio management and trust investment management with Harris Private Bank, now known as BMO Private Bank, where among his accomplishments he led the creation of BMO’s open architecture outside manager and mutual fund platform. In 2007, Michael was appointed president of the bank’s retail broker-dealer, BMO Harris Financial Advisors. As president of BMO Harris Financial Advisors, Mike led the transformation of the business to become a leader among peers in the growth of investment advisory assets under management. Likewise, as president of Huntington Investment Company, he has led the transformation of the business to become a planning-based advisory firm with advisory assets growing more than five-fold in just over five years.

Next Episode

DE&I Rising Stars: Making the Most of Mentorship

In this episode of the BISA Portfolio Podcast, learn why mentoring matters and how to make the most of it from 2023 DE&I Rising Stars awardee Lindsay Diehl Green, United Bank, and her mentor, Pamela Dawson, US Bank. Piera Valle of Pacific Life is guest host of this podcast.
Topics covered include:

Takeaways from the DE&I Rising Stars mentorship program
What they've learned through this program
Why they see mentorship and sponsorship as valuable to the industry
What they've learned from each other
How mentees can make the most of their time with a mentor

About Piera Valle
As a senior director in strategic accounts, Piera is responsible for developing and growing strategic partnerships for Pacific Life’s Consumer Markets Division. She also serves as a board member for Pacific Life’s Women at PL connections group, focusing on their community efforts and has been on the BISA DE&I Committee for the last five years.

About Pamela Dawson
As director of advisory business relations within U.S. Bank Asset
Management Group (AMG), Pamela is responsible for driving increased
awareness of AMG’s investment thought leadership, resource capabilities
and portfolio construction guidance.
Pamela specifically works with wealth management teams in U.S. Bancorp
Investments, an affiliate of U.S. Bank, in affluent markets. In this role, she
develops and delivers appropriate education and coaching to help team
members better understand, access and leverage AMG’s expertise in client
acquisition and retention opportunities. She is also a member of AMG’s
leadership team.
With more than 30 years helping organizations grow their businesses,
Pamela is an experienced executive in the financial services industry.
Prior to joining U.S. Bank, she was the senior director of the bank channel
for Russell Investments, where she established and grew the retail channel to
more than $4.5 billion in assets during her seven-year tenure. Prior to Russell,
she was a district sales manager for U.S. Bancorp Investments, an affiliate of
U.S. Bank. Pamela has also spent time in national accounts with American
International Group (AIG) and was the president of the broker/dealer division
at Washington Mutual.
About Lindsay Diehl Green
Lindsay serves as vice president, assistant director of operations & client services for United Wealth Management and United Brokerage Services, Inc. Responsible for the day-to-day management and oversight of account administration and operations, Lindsay works as part of the leadership team to develop and improve long-term strategies to meet client and company objectives. Lindsay joined United in 2005, and has held several leadership roles across the retail, brokerage and wealth management departments. Lindsay also serves as vice chair of United’s DE&I Council. She has been nationally recognized by BISA, being named to the DE&I Rising Star Program Class of 2023, and statewide by The WV State Journal’s Generation Next: 40 Under 40 Class of 2023 honoree. She is a long serving Advisory Council member and active volunteer for the Children’s Home Society of West Virginia. Lindsay holds the following licenses: Series 7, Series 66 and Life & Health Insurance.