oreide Law Group obtained the following information from FINRA’s website under, “Disciplinary and Other FINRA Actions May 2017.”
First Dallas Securities Incorporated (CRD #24549, Dallas, Texas)
was censured and fined $45,000 by FINRA for allegedly improperly charging ticket charges in at least 449 transactions involving 129 accounts for clients of its affiliated Registered Investment Advisor (RIA).
FINRA’s findings stated that trades on behalf of the RIA’s clients are placed through First Dallas Securities’ trade processing platform, which incurs transaction and handling fees that are assessed by the firm’s clearing firm. Some or all of these fees are passed on by the firm to the RIA’s clients in the form of a ticket charge. Because First Dallas Securities permits its representatives, who are all also registered with the RIA, to determine the amount of the ticket charge that will be assessed to their clients, these charges are not uniform.
First Dallas Securities’ representatives allegedly utilized at least 12 different ticket charge structures in connection with trade processing, including varying flat fees, per-share fees and hybrid fees. These fees were disclosed in the clients’ advisory agreements with the RIA. The total amount of the alleged overcharged ticket charges were $42,530, which First Dallas Securities has voluntarily repaid to the affected clients.
FINRA’s findings also stated that First Dallas Securities allegedly failed to have a supervisory system in place to ensure that each client was charged only the fee that was disclosed in that client’s advisory agreement. As a result, First Dallas Securities often assessed a ticket charge that was different than the disclosed amount, and in many cases, this fee resulted in the client being charged a fee that exceeded the agreed amount. These improper charges also were assessed in connection with the processing of lock trades, which generally resulted in the assessment of a higher processing fee for brokerage transactions.
(FINRA Case #2014039095801)
If you were a client of First Dallas Securities and you feel you have incurred losses due to their recommendations, actions, lack of supervision of their brokers/advisors or you have also been improperly charged fees to your account, contact Soreide Law Group for a no-cost consultation by a securities lawyer regarding the possible recovery of your investment losses at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA and we operate on a contingency fee basis. Let our years of experience work for you.