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ARTICLE · 14 APRIL 2021

Firm Settles FINRA Charges Over Unsuitable Recommendations

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A firm settled FINRA charges for failing to reasonably supervise the representative's alternative investment recommendations for customers, including seniors.

United StatesFinance and Banking
Hogan Lovells Cadwalader
Hogan Lovells Cadwalader
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A firm settled FINRA charges for failing to reasonably supervise the representative's alternative investment recommendations for customers, including seniors.

In a Letter of Acceptance, Waiver, and Consent, FINRA found that the representative solicited dozens of retiring, or retired, customers and recommended to them that they concentrate their retirement assets in structured notes and non-traded real estate investment trusts. FINRA found that many of the customers had minimal or no investment experience, rendering the representative's recommendations unsuitable.

FINRA stated that firm's supervisors also did not reasonably address, among others, the following red flags indicating that the representative was making unsuitable recommendations:

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