Chicago-based Stoltmann Law Offices represents investors who’ve suffered losses from dealing with brokerage firms who’ve placed clients in unsuitable investments and made recommendations mired in conflicts of interest. FINRA, the federal securities regulator, stated it has fined Credit Suisse Securities $9 million for failing to comply with securities laws and rules designed to protect investors, including the Securities and Exchange Commission’s (SEC) Customer Protection Rule and FINRA rules requiring firms to disclose potential conflicts of interest when issuing research reports.
Credit Suisse “failed to maintain possession or control of billions of dollars of fully paid and excess margin securities it carried for customers, as required. Second, on numerous occasions, the firm failed to accurately calculate its required customer reserve—that is, the amount of cash or securities the firm was required to maintain in a special reserve bank account,” FINRA found.
In addition, from 2006 through 2017, FINRA found “Credit Suisse issued more than 20,000 research reports that contained inaccurate disclosures about potential conflicts of interest. FINRA also found that the firm issued more than 6,000 research reports that omitted required disclosures. Credit Suisse’s disclosures omitted that the company that was the subject of the research report had been a client of the firm during the prior 12 months; or that the firm expected to receive investment banking compensation from the subject company within the next three months.”