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Many passive investors are happy just leaving their investments at the hands of their brokerage firms. Many investors opt review brokerage activity via a monthly overview statement rather than from a hands-on approach. Broker-dealers handling investment accounts are free to make most decisions on quantity and frequency of investment securities.

Although ostensibly broker-dealers must have the investor’s interests at heart, some may take advantage of the lack of oversight from the investor.

The Securities and Exchange Commission (SEC) warns that, in some cases, investors have encountered excessive fees due to sharp increases in brokerage activity on investment accounts.

By the end of 2017, the New York Stock Exchange (NYSE) will open up its trading floor to all U.S. securities. Currently, NYSE restricts securities trading on the floor to the top 3,166 stocks, according to a Reuters report.

The change means that, now, up to 8,600 securities can be traded by floor brokers.

So, how does this change meet with the rising popularity of electronic trading and what does this change mean for investors?

The Financial Industry Regulation Authority (FINRA) announced fines against 12 securities firms for their failure to accurately protect consumer records.

FINRA carried out fines, totaling $14.4 million, against 12 securities brokerage firms, including some of the largest-backed firms in the country.

FINRA found that these firms storing broker-dealer and consumer records without precautions in place to prevent alteration.

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