SEC Staff Fault Broker-Dealers Over Structured Securities

Law360, New York (July 27, 2011, 7:00 PM EDT) -- Inspectors at the U.S. Securities and Exchange Commission issued a report Wednesday faulting broker-dealers for peddling structured securities products to retail investors without addressing the risks or suitability of the investments.

After looking at 11 broker-dealers, the SEC Office of Compliance Inspections and Examinations concluded that the companies failed to properly train its sales force or ensure that retail investors were not misled when purchasing volatile structured securities products. The sweep and the ensuing report is intended to spur broker-dealers to strengthen their compliance programs....
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