The Financial Industry Regulatory Authority (FINRA) found that from October 2006 through October 2009, Northern Trust Securities, Inc. failed to monitor customer accounts for potentially unsuitable levels of concentration in collateralized mortgage obligations (CMOs). FINRA found that from January 2007 to June 2008 over 43% of the firm’s business was excluded from review.
In June 2011, Northern Trust was fined $600,000 for deficiencies in supervision of the CMO sales and for failure to have in place adequate systems to monitor high-volume securities trades.
Brad Bennett, FINRA Executive Vice President and Chief of Enforcement,
said, “Northern Trust’s deficient systems and procedures allowed more
than 40 percent of its transactions to proceed without review, which in
turn left vulnerable investors exposed to the risk of losing all or a
substantial portion of their principal through potential
over-concentration in CMOs.”
If you had an account with Northern Trust that had transactions involving CMO’s during the applicable time period, you should consult a securities attorney to determine your legal rights. FINRA rules generally limit proceeding with actions based on events that occurred more than six years prior to filing. Failure to act timely may result in loss of your rights.
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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