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FINRA Fines Firm Over Failure To Supervise Risky ETF Sales

Law360, New York (August 11, 2017, 9:30 PM EDT) -- The Financial Industry Regulatory Authority on Thursday filed a settlement with FSC Securities Corporation that requires the firm to pay a fine over allegations it failed to supervise trades in risky nontraditional exchange-traded funds and reimburse customers for losses from the trades.

Atlanta-based FSC Securities Corp. agreed to pay a $100,000 fine without admitting or denying FINRA’s allegations that it allowed its registered representatives to recommend customers buy leveraged and inverse exchange-traded funds without establishing a supervisory system capable of ensuring those recommendations were reasonable....
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