According to FINRA’s Disciplinary and Other FINRA Actions publication, Broker Dealer Financial Services Corp. (CRD#8073), an Iowa Firm, was censured and fined $75,000 for failing to establish and maintain a supervisory system, including written procedures, that were reasonably designed to ensure that the firm’s sales of leveraged or inverse exchange-traded funds (“ETFs”) compiled with applicable securities laws and NASD and FINRA rules.
Allegedly, representatives of Broker Dealer Financial Services Corp. made unsuitable recommendations to their customers by recommending high-risk ETFs. FINRA further alleged that Broker Dealer Financial Services Corp. did not investigate nontraditional ETFs before allowing its registered representatives to recommend them to customers. Furthermore, Broker Dealer Financial Services Corp. allegedly did not train its personnel in the appropriate use of nontraditional ETFs, and did not adequately monitor and supervise ETF activity in customer accounts. (See AWC No. 2012030436501)
If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.