February 2020-Norcross, GA
FINRA reports that Triad Advisors,LLC, a national, independent broker-dealer and multi-custodial SEC-Registered Investment Advisor, headquartered in Atlanta, has been fined and ordered to pay restitution to customers totalling $194,000 for inadequate supervision of its brokers who engaged in short term trading of mutual funds and variable annuities.
This practice is known as churning or switching and is generally done by financial advisors to generate commissions. According to regulators, “from June 2015 through December 2017, Triad failed to establish, maintain, and enforce reasonable supervisory procedures that were reasonably designed to identify possible inappropriate rates of VA exchanges” FINRA noted, adding that over time Triad had also fallen short in filing the necessary disclosures related to customer arbitrations and complaints.
At the time covered by the Finra settlement, Triad was owned by Ladenburg Thalmann Financial Services Inc.
Poor supervision of broker dealers is a longstanding issue for the retail securities industry.
In 2016, MetLife Securities was hammered with a $25 million fine by FINRA for their enormous compliance failings when changing clients from one annuity to another.
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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