FINRA Issues Censure To Western International Securities

Non-Compliance With Suitability Obligations

In November 2022, FINRA sanctioned Western International Securities in Case: 2020067094001. The firm agreed to pay a fine of $400,000, among other things to resolve allegations that it neglected its duties in ensuring that its recommendations regarding Non-Traded Real Estate Investment Trusts (REITs) complied with its suitability obligations.

Inadequate Supervisory Procedures

The firm's written supervisory procedures (WSPs) were not reasonably designed, leading to lapses in ensuring that Non-Traded REIT investments were consistent with customers' investment objectives and other profile factors. Moreover, some supervisors solely relied on incomplete forms, missing crucial customer profile data, to assess suitability.

Issues With A Former Representative

A representative of the firm was found to have recommended unsuitable purchases of Non-Traded REITs to clients, worth over $7.8 million. These recommendations were made without a reasonable basis of suitability, especially considering the diverse profiles of the affected customers.

Red Flags Ignored

The company did not appropriately investigate warning signs linked to this representative and some of his sales.

Reporting Lapses

Western International Securities failed to either report or timely report several customer complaints, arbitrations, and settlements. These delays not only hampered FINRA's investigation efforts but also deprived the public of timely and pertinent disclosure. For this reason, the regulator sanctioned the securities firm. Public records show that the firm has resolved the matter with the regulator.

Did Western International Securities Cause You To Experience Damages?

Have you experienced damages because of Western International Securities? If so, contact Soreide Law Group online or at (888) 760-6552 and talk with a securities lawyer about a possible recovery of your investment losses. Soreide Law Group, a firm that has recovered money for investors throughout the United States, represents clients on a contingency fee basis and advances all costs. The securities firm denies any and all allegations.