On June 4, 2013, the Financial Industry Regulatory Authority (FINRA) fined Merrill Lynch Pierce Fenner & Smith (successor
for Banc of America Investment Services, Inc.) $900,000 and ordered them to reimburse $1.1 million in losses to 214 customers for losses incurred from unsuitable sales of floating-rate bank loan funds. Here is a link to the FINRA news release.
Floating-rate bank loan funds are investments in a portfolio of secured senior loans to companies with below investment-grade credit ratings and are illiquid and subject to various risks. FINRA found that Merrill Lynch suggested investment in these products to customers whose risk tolerance, investment objectives and financial conditions were inconsistent the risks associated therewith.
If you have losses on investments that you believe were unsuitable for you or which you purchased based on the misrepresentations of the broker who made the sale, you may be able to recover all or a part of those losses through FINRA arbitration.
Rex Securities Law , located in Boca Raton, FL, 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.
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