BOCA RATON, Fla., March 28, 2014 (GLOBE NEWSWIRE) -- The Silver Law Group has recently filed a securities arbitration claim with Financial Industry Regulatory Authority (FINRA) (Case No. 13-03546) against LPL Financial for losses in alternative investments and leveraged ETFs. The FINRA arbitration claim filed on behalf of a retired investor is for damages in excess of $250,000.00. According to the FINRA securities arbitration claim, LPL recommended that the client invest a large percentage of her assets in complex, expensive alternative investments and to engage in a trading strategy that only benefited LPL because of the high commissions and costs associated with the trading activity. The complaint further alleges that LPL failed to implement a reasonable supervisory structure and failed to properly supervise the financial advisor.
After the arbitration claim was filed, on March 26, 2014, FINRA announced a $950,000 fine against LPL for supervisory deficiencies related to the sales of alternative investment products, including but not limited to:
- non-traded real estate investment trusts (REITs);
- oil and gas partnerships;
- business development companies (BDCs)
- hedge funds
- managed futures; and
- other illiquid investments.
A FINRA Executive was quoted as saying, "In order to sell alternative investments, a broker-dealer must tailor its supervisory system to these products. LPL exposed customers to unacceptable risks by not having an adequate system in place that could accurately review whether a transaction complies with suitability requirements imposed by the states, the product issuers and the firm itself – and it failed to train its registered representatives to apply all the suitability guidelines appropriately."
Scott Silver, Managing Partner of Silver Law Group, highlights that this fine will be paid to FINRA and not to the investors who actually lost money. Any investor who suffered damages because LPL invested in unsuitable alternative investments may file a FINRA Arbitration claim to potentially recover their losses.
Our attorneys have significant experience representing investors in FINRA arbitration claims and are currently investigating LPL's sales practices including the sale of leveraged ETFs and alternative investments. If you have questions about your legal rights, or have been the victim of investment fraud, please contact us Toll Free at (855) 755-4799 for a free consultation.
Destination URL: http://www.silverlaw.com