Cetera Customer Complaints

The Financial Industry Regulatory Authority, Inc. (FINRA) recently censured three Cetera firms, and additionally fined the firms $1 million combined. Without admitting or denying FINRA’s findings, Cetera Advisor Networks agreed to a fine of $750,000, Cetera Advisors agreed to a fine of $150,000 and Cetera Financial Specialists to a fine of $100,000. The firms consented to the censure and the fines, and also to deliver a certification of a review and revision of their supervisory policies and procedures, according to FINRA.
A recent article in Financial Advisor IQ stated that these fines were allegedly due to deficiencies in supervising dually-registered representatives (DRRs).  FINRA stated that in a letter of acceptance, waiver and consent published this week, the three firms allegedly failed to have a reasonably designed supervisory system in place to oversee certain private securities transactions by their DRRs at unaffiliated or "outside" Registered Investment Advisors (RIAs).
According to FINRA, Cetera Advisor Networks and Cetera Advisors, allegedly had a lapse from January 2011 through December 2018, and Cetera Financial Specialists, lapsed from November 2012 through January 2018.
FINRA alleges that the firms were aware of the deficiencies as early 2013, when the SEC identified them in its examinations. According to the Financial Advisor IQ article, the SEC also allegedly found the deficiencies in examinations conducted in 2015 and 2017, yet the firms allegedly failed to implement adequate systems and procedures to supervise the transactions. FINRA stated that while in 2014 Cetera began an initiative to collect the information necessary to supervise outside RIA transactions by its DRRs, it was never completed.
According to FINRA, by 2018, the DDRs oversaw more than $80 billion in customer assets in over 47,000 accounts. In January of 2018, FINRA stated that Cetera Advisor Networks had 487 DRRs operating through 12 outside RIAs and overseeing approximately $77.8 billion across about 42,000 accounts. By June of 2018 Cetera Advisors had 41 DRRs operating through 17 outside RIAs, managing around $1.2 billion in approximately 4,400 accounts.  FINRA states that Cetera Financial Specialists had seven DRRs operating through three outside RIAs managing around $382 million in approximately 680 accounts through March of 2017.
If you’ve experienced investment losses due to the recommendations or actions of any of these firms, Cetera Advisor Networks, Cetera Advisors, and/or Cetera Financial Specialists, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group works on a contingency fee basis and represents our clients nationwide before FINRA.