Articles Posted in Suitability

FINRA HITS AN FA FOR REASONABLE-BASIS SUITABILITY VIOLATION WITH NON-TRADITIONAL ETFs
Herskovits, PLLC

An AWC issued on July 1, 2021, reflects that FINRA suspended an FA formerly registered with David A. Noyes & Company (now known as Sanctuary Securities) for three-months and imposed a deferred fine of $5,000. This AWC demonstrates FINRAs ongoing concerns around the sale of leveraged and inverse exchange traded funds to retail customers. This…

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FINRA Attacks Suitability By Challenging FAs Product Knowledge
Herskovits, PLLC

On January 3, 2020, FINRA released an AWC for Robert James D’Andria, Case No. 2017056579502. At first blush the AWC seems rather plain vanilla. The FA recommended high-risk products, in this case leveraged and inverse exchange-traded notes and funds, to retail investors and FINRA deemed those recommendations to be unsuitable. FINRA suspended the FA for…

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FINRA ACCUSES NY LIFE OF FALSIFYING CUSTOMERS’ INVESTMENT OBJECTIVES: OUCH
Herskovits, PLLC

FINRA wants a member firm to enforce its written supervisory procedures. And FINRA wants a member firm to recommend securities that fit within the customer’s investment objectives. And certainly FINRA wants a member firm to avoid falsification of business records. So what happens when a member firm doesn’t quite live up to FINRA’s expectations? Let’s…

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