FINRA Fines Ferris Baker Over Low-Income Note Sales

Law360, New York (October 20, 2010, 4:49 PM EDT) -- Broker-dealer Ferris Baker Watts Inc. — now a part of RBC Capital Markets Corp. — has been ordered to pay almost $700,000 by the Financial Industry Regulatory Authority for allegedly selling reverse convertible notes to lower-income investors for whom the complex investments were not appropriate.

In a settlement announced Wednesday, FINRA said that from January 2006 to July 2008, Ferris Baker sold reverse convertible notes to customers who were elderly or had modest net worth, in violation of agency rules that broker-dealers determine whether a product...
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