San Antonio, Texas
According to publicly available records San Antonio-based brokerage firm McNally Financial Services (CRD#121196) , discloses two prior regulatory events.
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.
In 7/2013 McNally Financial Services was censured and fined $15,000 to resolve FINRA allegations that the firm failed to establish and maintain an adequate supervisory system and written supervisory procedures governing its sale of Steepeners to it customers, thereby violating NASD Rule 3010 and FINRA Rule 2010. FINRA alleged that the sale of Steepeners was a significant part of McNally’s business during the relevant time period. FINRA AWC 2011025617101
STEEPENER INVESTMENTS
According to the FINRA allegations: ” Steepeners are complex, non-conventional products. They are typically longer-term notes and certificates of deposit with 10 to 20 year maturity dates. Steepeners pay interest rates that are fixed initially and float thereafter based on the “steepness” of the yield curve.’ The steeper the yield curve, or wider the spread between long- and short-term interest rates (typically, the benchmark rate is the constant maturity swap rate), the higher the interest rate paid. Conversely, the flatter the yield curve, or narrower the spread between long and short-term rates, the lower the interest rate paid. Steepeners are typically callable by the issuers after a relatively short, pre-specified period of time (e.g., one year).”
See FINRA’s Investor Alert regarding Steepeners issued in November 2011.
Depending on the terms of the particular Steepener investment, it may not be suitable for someone who is retired or who is seeking a conservative investment strategy.
McNally Financial Services has been a FINRA member since 2002. They have about 22 registered representatives in branch offices located in Texas, California, Florida and Nevada.
If you have questions about an account with McNally Financial Services, call to discuss your options.
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.
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