Category Archives: First Southwest Company (now Hilltop Securities)

Hilltop Securities Named in 46 Regulatory Events/22 Customer Arbitrations

April 11, 2016-Dallas, Texas

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

FINRA records are public and can be accessed on the BrokerCheck website. 

The FINRA records of Hilltop Securities, disclose that the company has been named in 46 regulatory events including the following:

  • US Security and Exchange Commission case 3-17091, resolved in February 2016. A cease and desist injunction issued and a monetary fine of $360,000 assessed for violations of the antifraud provisions of federal securities laws and inadequate due diligence in certain offerings.

FINRA records also discloses 22 customer arbitrations against Hilltop Securities.

In January 2016, Hilltop Holdings merged its two broker-dealer subsidiaries First Southwest Company and Hilltop Securities (formerly Southwest Securities). The combined firm will operate as Hilltop Securities.

If you have losses in an account at Hilltop Securities you may be able to recover damages through FINRA arbitration.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

First Southwest Company Sanctioned by Securities Regulators

First Southwest Company  entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from August 8, 2012 through April 26, 2013, the firm failed to deliver Exchange Traded Fund (ETF) prospectuses to its customers in violation of the Securities Act and FINRA Rule 2010.

AWC NO. 2013038322901

First Southwest Company was censured and fined $450,000.  

First Southwest Company  has been a FINRA member since 1946, is headquartered in Dallas, Texas , and has branch offices nationwide, from Alaska to Florida.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

First Southwest Company, Dallas, TX, Fined by FINRA

Dallas, Texas

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

AUGUST 2013
First Southwest Company (CRD #316, Dallas, Texas) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $27,500.

Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to report a Large Options Position Report (LOPR) position with the correct effective date, failed to submit reportable positions to the LOPR on numerous days, and failed to accurately report accounts to LOPR under common control or acting in-concert that should have been linked for purposes of in-concert reporting, impacting numerous positions held in those accounts.

The findings stated that the firm failed to establish and maintain a supervisory system, including WSPs and a separate system of follow-up and review, reasonably designed to achieve compliance with rules governing the reporting of large options positions, in that the firm failed to conduct reasonable supervisory reviews to ensure the accuracy of its LOPR submissions. The firm also failed to transmit numerous ROEs to OATS that it was required to transmit to OATS. (FINRA Case #2010022732701)

If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870