Chapin Davis, Inc. (CRD #28116, Baltimore, Maryland)
was censured and fined $35,000 in connection with the alleged sale of structured products, the firm’s supervisory system and WSPs were inadequate.
FINRA's findings stated that Chapin Davis sold approximately $24.5 million in structured notes and Federal Deposit Insurance Corporation (FDIC) insured structured certificates of deposit (CDs) to retail customers.
Chapin Davis allegedly did not have a system or WSPs for evaluating and conducting due diligence on the products, including determining risks and suitability issues, as applicable, and for approving the products. Allegedly, Chapin Davis offered limited training on the products, and its WSPs did not specifically address the products or provide guidance or restrictions unique to the products, including assessment or consideration of customer-specific suitability.
Also, Chapin Davis did not sufficiently review transactions in the products, including monitoring of accounts for overconcentration of the products.
(FINRA Case #2012030601701)
This summation is from FINRA’s website was under "Disciplinary and Other FINRA Actions, December 2014," and ends here.
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