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PNC Investments Fined $275K by FINRA Over ETF Sales

PNC Investments Fined $275K by FINRA Over ETF Sales 150 150 Rex Securities Law

By Robert H. Rex, Esq.

The Financial Industry Regulatory Authority (FINRA) fined PNC Investments, Inc. $275,000 in February 2014 for supervisory and compliance inadequacies related to the sale of leveraged, inverse and inverse-leveraged Exchange Traded Funds (ETFs). In addition FINRA ordered the company to pay restitution of over $33,000 to certain customers. 
FINRA found that PNC failed to establish and maintain a supervisory system reasonably designed to achieve compliance with applicable NASD and/or FINRA rules in connection with the sale of the ETFs. FINRA stated that non-traditional ETFs have certain risks that are not found in traditional ETFs, such as risks associated with a daily reset, leverage and compounding. The performance of non-traditional ETFs over longer periods of time can differ significantly from the performance of their underlying index or benchmark, especially in volatile markets. 
If you have questions about losses on Exchange Traded Funds or other investments in your brokerage account, call to speak with an experienced securities attorney. No charge for initial consultation.
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