Broker Dealer Financial Services Corp. (CRD #8073, West Des Moines, Iowa)
was censured and fined $75,000 and made restitution of $24,564.18 to clients. Allegedly, Broker Dealer Financial Services Corp through some of its representatives, made unsuitable recommendations to their clients in leveraged or inverse exchange-traded funds (nontraditional ETFs).
FINRA’s findings stated that Broker Dealer Financial Services Corp did not investigate nontraditional ETFs before allowing its representatives to recommend them to their clients, did not train their personnel in the use of nontraditional ETFs, and did not adequately supervise and monitor nontraditional ETF activity in client accounts.
FINRA’s findings also stated that Broker Dealer Financial Services Corp failed to establish and maintain an adequate supervisory system, including written procedures, that was reasonably designed to ensure that its sales of nontraditional ETFs complied with applicable securities laws and NASD® and FINRA rules.
(FINRA Case #2012030436501)
This ends the summation of information from FINRA’s website under ‘Disciplinary and Other Actions, July 2015.’
ETFs can highly speculative and risky investments that are not suitable for certain investors. If you’ve suffered 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.