FINRA Fined and Censured Connecticut Firm and Orders Restitution to Clients

Infinex Investments, Inc. (CRD #35371, Meriden, Connecticut)

was censured, fined $75,000 by FINRA, and ordered to pay $287,171.75 in restitution to it's clients. Infinex Investments, Inc., allegedly failed to review non-traditional exchange-traded funds (ETFs) at the same level that other new products offered for sale to their customers.

FINRA's findings stated that Infinex Investments registered representatives recommended non-traditional ETFs without reasonable due diligence. These recommendations lacked a reasonable basis and were allegedly unsuitable for their clients.

FINRA also found that allegedly some non-traditional ETFs purchases were risky to customers with conservative investment objectives. Customers who had conservative investment objectives and low risk tolerances and whose ETFs were held for seven or more days lost money on those investments. The losses totaled $287,171.75.

FINRA's findings also allege that Infinex Investments failed to establish and maintain an adequate supervisory system, including Written Supervisory Procedures (WSPs) and to monitor and review the sale of non-traditional ETFs to their customers. Also FINRA found that Infinex Investments failed to establish and maintain specific WSPs for non-traditional ETF transactions. Infinex Investments failed to conduct training or provide written guidance for its personnel regarding the sale and supervision of non-traditional ETFs.
(FINRA Case #2011025436101)

This ends the summation from FINRA's website under "Disciplinary and Other Actions, June, 2014."

Non-traditional ETFs are highly speculative and risky investments that may not be suitable for some investors. If you've had financial losses due to the recommendation of your broker/financial advisor in ETFs, call Soreide Law Group for a free consultation with an attorney at: (888) 760-6552.