By Robert H. Rex, Esq.
In 1998 the Securities & Exchange Commission approved NASD Rule 3010 requiring broker dealers to establish special supervisory procedures, including the tape recording of conversations with customers, if they hire more than a specified percentage of brokers from certain firms that have been expelled or that have had their broker/dealer registrations revoked for sales practice rules violations.
The specifics are set forth in Notice to Members 98-52.
As of May 1, 2014, those disciplined firms include:
Basis Financial LLC
Cambridge Legacy Securities, LLC
Hedge Fund Capital Partners, LLC
Hudson Valley Capital Management
Melhado, Flynn & Associates, Inc.
Pinnacle Partners Financial Corporation
Prestige Financial Center, Inc.
Take Charge Financial
Thornes & Associates, Inc. Investment Securities
Viewpoint Securities, LLC
W R Rice Financial Services, Inc.
Westor Capital Group, Inc.
If you have questions about the way your brokerage account has been handled or questions regarding recovery of investment losses from stockbrokers or brokerage firms, call to speak with an experienced securities lawyer.
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