Stifel Nicolaus/Century Securities Fined Over ETF Sales

By Robert H. Rex, Esq.

In January 2014, to resolve FINRA allegations that they had sold leveraged and inverse exchange traded funds (ETFs) to customers for whom the investments were unsuitable, Stifel Nicolaus & Co. and its subsidiary Century Securities, Inc. agreed to pay more than $1 million in fines and restitution.

Stifel sold about $641 million in nontraditional ETFs to retail investors from 2009 to 2013. Century sold about $31 million according to FINRA.

Leveraged and inverse ETFs are volatile and generally are not suitable for conservative investors.

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