FINRA Takes Aim At Brokers Selling Reverse Convertible Notes

Investment News reports that Richard Ketcham, FINRA’s chairman and chief executive last week warned an audience of more than 900 industry professionals at the regulator’s annual meeting in Washington that the regulator is focusing on broker-dealers that sell structured products such a reverse convertible notes. This news comes on the heels of our blog post…

Reverse Convertible Notes Targeted By Massachusetts Securities Regulators

According to a Bloomberg News article today entitled, Massachusetts Investigates Sales of Reverse Convertible Notes, the state securities regulator appears to be positioning itself to potentially take action against the brokerage industry on its sales practices related reverse convertible notes. Reverse convertible notes are very complex structured investments that are rarely suitable for retail investors.…

FINRA Orders Merrill Lynch To Pay More Than $2.5 Million Related To Unit Investment Trust (UIT) Charge Discount Failure

This month, FINRA announced that it fined Merrill Lynch $500,000 and ordered the firm to pay over $2 million in restitution to its customers for failing to provide them with sales charge discounts on eligible purchases of Unit Investment Trusts (UITs). A UIT is a type of investment company that offers redeemable units that terminate…

FINRA Orders Atlanta-based SunTrust Investment Services To Pay $1.44 Million For Recommending Unsuitable UIT, Closed-End Fund and Mutual Funds To Elderly Investors

Last month, FINRA, the organization that regulates the securities industry, ordered SunTrust Investment Services of Atlanta, Georgia to pay $1.44 million to resolve charges related to the unsuitable recommendations of unit investment trusts, closed-end funds and mutual fund investments sold to some of its elderly and disabled clients. Of that amount, $900,000 is a fine…