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...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!