FINRA Hits Stifel For $3.6M In Year's Top Suitability Settlement

Law360 (May 28, 2020, 5:07 PM EDT) -- The Financial Industry Regulatory Authority has ordered broker-dealer Stifel Nicolaus & Co. to pay more than $3.6 million in the largest suitability settlement of 2020, claiming the broker-dealer did not adequately monitor the rollovers of certain customer investments and provided inaccurate information.

Between January 2012 through December 2016, Stifel charged customers nearly $1.9 million for "potentially unsuitable" early rollovers of investments known as unit investment trusts, or UITs, only to omit or understate those costs in letters to customers, Wednesday's settlement said.

"Firms must have an adequate supervisory system in place to detect potentially unsuitable UIT rollovers, and also provide customers with...

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