The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to respond adequately to red flags relating to a former registered representative, which taken together would have caused it to investigate and discover his conversion of a trust’s assets.
The broker served as both trustee of the trust as well as broker to the trust, a clear conflict of interest. The FINRA report found that numerous red flags were ignored including a pattern of mutual fund switching that went on for five years.
(FINRA Case #2009019590503 )
See the FINRA website for current and historical disciplinary actions as well as the complete FINRA report on CFD Investments, Inc.
561 391 1900