Hello. A brief one today, unless I can budget some more time.
In the last couple of years, Ben Tanaka has been employing an SEO strategy of posting little snippets with commentary about common iDeCo and NISA mutual fund/ETF offerings. If you are in the business of providing investment advice–meaning you take people’s money–you have to be licensed to do this sort of thing. Maybe there is an exception when the potential victim is a foreigner.
As a comparison, there is a popular DIY investment site, which must have been around for 25 years by now, called The Motley Fool. The Motley Fool business is a Registered Investment Advisor at the US Securities and Exchange Commission.
IIRC, originally, Motley Fool started out as a BBS for “sharing”. They tightened up their act at some point later, and I think this had to do with the fact that they were providing a platform to recommend stocks and other investments—and taking people’s money. You don’t get to pass along other peoples’ investment recommendations, and then say, well, “they” have said. “You didn’t hear it from me, BUTTTTT . . . others have said that eSlims Aarukon (All Country) is the way to go.” “What do you think? Let me know in the comments.” “By the way, I’m available for coaching.”
What I wonder about is: if Ben Tanaka’s “don’t rely on me, BUTTTT” disclaimers would ever have holes poked into them in the future, what is his defense to have taken money? All someone has to do is have lost money on one of Ben’s tips that he gleaned off the internet, and they point back at him. What does he say? “The community was so lost out there?” “They needed guidance!”
US Securities and Exchange Commission regulates under a framework. So does Japan. And probably, the UK, too.
Urging enrollment in kokumin nenkin is one thing. Let me tell you what I think your portfolio allocation in a defined contribution plan should be, for pay, is another. And if my inducement is to give free opinions about specific securities, or parrot other’s free opinions, as the, essentially, loss leader, I don’t that that gets one out of regulatory structure.
But what do youuuuu think? Click here for more!
Hoofin 