NEW YORK - The next major threat to clients’ portfolios—and thus the next big risk for litigation—is not so much rogue brokers, but volatile interest rates, FINRA CEO Richard Ketchum said Tuesday.

“If you look historically where the industry has tended to fail, [it] is in flex times where there’s risk of volatility when there has been outperformance with respect to an asset class,” said Ketchum at SIFMA’s Annual Meeting 2013. ”We had the chance in May and June to see a pre-show of what the world might be with respect to intensely volatile interest rates and what that means with respect to yields.”

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