Berthel Fisher & Affiliate Fined $775K by FINRA Over Supervisory Failures Involving Non-Traded REITs and Leveraged and Inverse ETFs

Berthel Fisher & Company Financial Services, Inc.和its affiliate, Securities Management & Research, Inc. are going to pay the Financial Industry Regulatory Authority a combined $775,000 for purported supervisory deficiencies related to leveraged and inverse exchange-traded funds and non-traded real estate investment trusts. The firm settled without deny or admitting to the allegations.

FINRA claims that from January 2008 to December 2012 Berthel Fisher had inadequate written procedures and supervisory systems to deal with the sale of alternative investment products, such as managed futures, non-traded REITs, oil and gas programs, managed futures, business development companies, and equipment leasing programs. The SRO says that the brokerage firm’s staff were improperly trained with regard to state suitability standards, and criteria wasn’t properly enforced in a number of alternative investment sales because the firm did not figure out the correct concentration levels of certain financial instruments.

FINRA还表示，从4/09到4/12，柏斯特尔·费舍尔（Berthel Fisher）由于许多原因而缺乏合理的ETF销售依据，包括未能正确审查或研究非传统ETF，然后再让注册代表向客户提出建议。没有提供不足的销售培训，并且一些客户遭受了损失，因为经纪公司没有监控投资持有期。

逆向和杠杆ETF通常不合适，对于购买和低风险的客户而言。它们提供了更大的市场波动，并且在一天中持续的时期可能与基准有很大不同。SRO指出，Berthel Fisher代表向1000多个客户建议了4,950万美元的非传统ETF。不幸的是，这些产品中的许多产品都出售给想要更保守处理的投资的客户
As part of the settlement, Berthel Fisher agreed to retain an independent consultant to enhance supervisory procedures for alternative investment sales. It will also pay almost $13,293 in investor restitution. The broker-dealer no longer has inverse and leveraged ETFs on its platform.

If you suspect you were the victim of securities fraud, contact our Non-traded REIT lawyers or our ETF fraud lawyers today.

FINRA Fines Berthel Fisher and Affiliate, Securities Management & Research, $775,000 for Supervisory Failures Related to Sales of Non-Traded REITs and Leveraged and Inverse ETFs, FINRA, February 24, 2014

Finra fines Berthel Fisher $775,000 for compliance failures，投资新闻，2014年2月24日

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