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The BD/IA Regulator Providing securities regulatory, enforcement and litigation trends for broker-dealers, investment advisers and investment funds

Tag Archives: ETFs

FINRA Sanctions Member Firm for Failure to Deliver ETF Prospectuses

Posted in Enforcement, FINRA Enforcement

FINRA recently sanctioned a broker-dealer (the “Firm”) for failure to deliver prospectuses in connection with its sale of ETFs.  FINRA also found that the Firm failed to implement a supervisory system reasonably designed to achieve compliance with securities laws and regulations governing ETF prospectus delivery.  The Firm was censured and agreed to a fine of… Read More

FINRA Continues Focusing on Suitability of Complex, Non-Traditional ETFs

Posted in Broker-Dealer Regulation, Enforcement, FINRA Enforcement

FINRA recently announced another settled disciplinary proceeding alleging unsuitable sales of levered and inverse exchange-traded funds (ETFs). This second such announcement in recent months involving non-traditional ETFs sends the clear message that FINRA continues to be intensely focused on the retail sale of complex structured products. In the recent consent order, two brokerage firms agreed… Read More

FINRA Reiterates Its Concern about Unsuitable Sales of Non-Traditional ETFs

Posted in Broker-Dealer Regulation, Enforcement, FINRA Enforcement

FINRA recently announced a disciplinary proceeding that underscores its continuing concerns about unsuitable retail sales of structured products. In a recently settled formal disciplinary proceeding, FINRA censured a registered broker-dealer and ordered it to pay restitution to customers and others who lost money trading in, among other things, non-traditional exchange-traded funds (ETFs). FINRA’s action relates… Read More