REUTERS SUMMIT-Highlights, Day 1: Brokerage regulator to review fines

New York (Frankfurt: HX6.F - news) , June 16 (Reuters) - (For other news from the Reuters Global Wealth Management Summit, click on http://www.reuters.com/summit/Wealth14) The following are highlights of the Reuters Global Wealth Management Summit in New York, where key financial services industry executives are discussing their competitive pressures and growth plans, as well as their predictions for markets in the second half of 2014. Senior executives are also gathering in Geneva and Singapore for the Reuters Summit.

RICHARD KETCHUM, chairman and chief executive officer, the Financial Industry Regulatory Authority

Wall Street's industry-funded regulator will review its guidelines for imposing fines in enforcement cases. FINRA's sanction guideline review will be its first in at least five years, Ketchum said.

FINRA's review will hone in on sanctions for repeat offenders and look into whether it should create a separate category for the largest brokerage firms.

GEORGE LEWIS, group head, Royal Bank of Canada (Toronto: RY-PC.TO - news) 's Wealth Management and RBC Insurance, Royal Bank of Canada

Lewis said the bank is looking to grow its presence in alternative asset management, particularly in real estate, and to beef up U.S. distribution, suggesting acquisitions will happen in the next couple of years.

"Opportunities in that C$1 to C$2 billion cumulative range over the next couple of years, that would be very much the size we are looking for, whether that comes in one or two or three components," he said. "Building U.S. distribution, and increasing alternative capabilities, would be our principal focus."

SCOTT DAVID, head of U.S. investment services, T. Rowe Price Group Inc., and CHIP CASTILLE, head of retirement group, BlackRock Inc (NYSE: BLK - news) .

David and Castille said they are not concerned that baby boomers will start pulling out their money when they retire and hurt the stock market.

"If you're going to retire with a 30-year time horizon," David said, "why would you pull money out of the stock market?"

"Boomers are going to keep allocations to equities," Castille said. "I don't think it's going to be a giant sell-off."

Castille also said the 401(k) industry was being somewhat disrupted by sophisticated financial advisers who are marketing directly to employers with the idea of managing large retirement plans. That could ice out some traditional benefits consultants and make it harder for companies that pre-package 401(k) investment portfolios to compete.

GREG FLEMING, president, Morgan Stanley Wealth and Investment Management

Morgan Stanley (Berlin: DWD.BE - news) has hired Deutsche Bank (Xetra: DBK.DE - news) 's Mark Mitchell to lead its growing tailored-lending business, which allows clients to borrow for or lend against less conventional items like art, aircrafts, boats, concentrated stock holdings and commercial real estate.

"With Mark on board, we'll be able to grow this segment significantly over the next couple of years," Fleming said. (Compiled by Reuters' Wealth Management team)