Articles Tagged with Next Financial

Stoltmann Law Offices is investigating cases where brokers have overtraded to generate commissions in risky investments. FINRA, the federal securities industry regulator, has fined Next Financial Group, a broker-dealer owned by Atria Wealth Solutions, $750,000 to settle charges that it failed to supervise ‘unsuitable’ trading of mutual funds and municipal bonds by one unnamed broker, according to citywireusa.com.

FINRA found that the broker “engaged in short-term trading of Class A mutual fund shares in 19 client accounts, resulting in ‘unnecessary’ front-end sales charges of $925,000 from 2012 until February 2019.” All told, the broker racked up some $5 million in sales charges in the seven-year period. Additionally, FINRA found that “from June of 2013 to November of 2016, the broker engaged in short-term trading of Puerto Rican municipal bonds in 16 customer accounts, concentrating five of the accounts in these bonds.”

‘These bonds carried risks not associated with other municipal bonds because of concerns about the Puerto Rican economy and subsequent restructuring of Puerto Rican debt. The risk of such concentration was compounded by frequent trading in the PR Bonds because of the repeated payment of upfront costs that would decrease any investment returns,” FINRA said in its complaint. The investors in the Next case lost more than $4 million from their Puerto Rican bond investments.

The Financial Industry Regulatory Authority (FINRA) cracked down on Next Financial, Key Investment and Stephens for failing to give clients discounts for large purchases of investment products. The three firms were ordered to pay $1.2 million in fines and restitution. They were charged with failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (UITs) and related supervisory failures, according to the settlements. A UIT is an exchange-traded mutual fund offering a fixed portfolio of securities having a definite life. Each unit typically costs $1,000 and is sold to investors by brokers. They can be resold in the secondary market. They are held to maturity and typically issue redeemable securities or “units,” which means the UIT will buy back an investor’s units at the investor’s request, at their approximate net asset value, according to the Securities and Exchange Commission (SEC). Next Financial was fined $125,000 and ordered to pay restitution of $216,000, Key Investment Services was fined $100,000 and Stephens was fined $235,000 and ordered to pay restitution of $459,000. Next Financial and Key Investment Services failed to give discounts from June May 2009 to April 2014 and Stephens failed to give discounts from June 2010 to May 2015. In October, FINRA ordered 12 firms to pay restitution and fines of $6.7 million for failing to apply sales charge discounts on purchases of UITs and other supervisory related failures, and also fined six broker-dealers for failing to give discounts on large real estate investment trust (REIT) sales.

The Financial Industry Regulatory Authority (FINRA) cracked down on Next Financial, Key Investment and Stephens for failing to give clients discounts for large purchases of investment products. The three firms were ordered to pay $1.2 million in fines and restitution. They were charged with failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (UITs) and related supervisory failures, according to the settlements. A UIT is an exchange-traded mutual fund offering a fixed portfolio of securities having a definite life. Each unit typically costs $1,000 and is sold to investors by brokers. They can be resold in the secondary market. They are held to maturity and typically issue redeemable securities or “units,” which means the UIT will buy back an investor’s units at the investor’s request, at their approximate net asset value, according to the Securities and Exchange Commission (SEC). Next Financial was fined $125,000 and ordered to pay restitution of $216,000, Key Investment Services was fined $100,000 and Stephens was fined $235,000 and ordered to pay restitution of $459,000. Next Financial and Key Investment Services failed to give discounts from June May 2009 to April 2014 and Stephens failed to give discounts from June 2010 to May 2015. In October, FINRA ordered 12 firms to pay restitution and fines of $6.7 million for failing to apply sales charge discounts on purchases of UITs and other supervisory related failures, and also fined six broker-dealers for failing to give discounts on large real estate investment trust (REIT) sales.

CNBC
FOX Business
The Wall Street Journal
Bloomberg
CBS
FOX News Channel
USA Today
abc NEWS
DATELINE
npr
Contact Information