Brokerage Firms In The News - Law Offices of Robert Wayne Pearce

Apr 9, 2025

Deutsche Bank Securities Inc. Fined for Failure to Deliver Prospectuses to Investors

Deutsche Bank Securities Inc. (DBSI) has been fined by the Financial Industry Regulatory Authority (FINRA) for violation of securities industry rules and regulations relating to the protection of investors. DBSI failed to implement and maintain adequate supervisory systems and procedures to monitor and ensure the timely delivery of mutual fund prospectuses as required by Section 5 of the Securities Act of 1933 (the “Securities Act”), NASD Conduct Rule 3010 and FINRA Rule 2010. FINRA investigators discovered that DBSI failed to provide prospectuses to its customers who purchased mutual funds and other securities products during the period of its investigation – 2009 through 2011 (the “relevant period”). FINRA estimated that DBSI may have failed to deliver at least 75,000 prospectuses to its customers in a timely manner during that period.

Apr 9, 2025

LPL Financial, LLC Fined for Failure to Deliver Prospectuses to Investors

LPL Financial, LLC (LPL), for the third time in the last thirty days, has been fined by the Financial Industry Regulatory Authority (FINRA) for violation of securities industry rules and regulations relating to the protection of investors. This time LPL failed to implement and maintain adequate supervisory systems and procedures to monitor and ensure the timely delivery of mutual fund prospectuses as required by Section 5 of the Securities Act of 1933 (the “Securities Act”), NASD Conduct Rule 3010 and FINRA Rule 2010. FINRA investigators discovered that LPL failed to provide prospectuses to its customers who purchased mutual funds during the period of its investigation – 2009 through 2011 (the “relevant period”). FINRA estimated that LPL may have failed to deliver at least 3.4 million mutual fund prospectuses to its customers during that two year period. There is a high probability that LPL failed to deliver prospectuses in connection with the sale of other products during the relevant period and did not have procedures in place to ensure delivery of any prospectuses to its customers prior to the relevant period. The FINRA investigators found that at least as early as 2007, LPL was aware that its procedures were failing to ensure that its registered representatives were delivering the prospectuses as required under the federal and state securities laws.

Apr 9, 2025

Royal Alliance Investor Alert – Independent Broker-Dealer’s Lax Supervision Causes Losses

Royal Alliance Associates, Inc. is a subsidiary of the Advisor Group, which is owned by the AIG Insurance Company. It is one of the largest independent broker-dealers whose business model is akin to a franchise operation. Royal Alliance is headquartered in New York City and reportedly has over 2300 registered representatives across the United States operating in one or two person offices. Its growth in recent years can largely be attributed to layoffs at the major wire houses due to the most recent financial market meltdown. Most of Royal Alliance’s registered representatives’ gross production of revenues is less than $300,000 per year. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors’ rights.

Apr 9, 2025

UBS Willow Fund Liquidates Shares Leaving Investors with 20 Cents on the Dollar

In October 2012, the UBS Willow Fund, a distressed debt hedge fund, informed investors that the fund would be liquidated after having sustained substantial losses. Formed in 2000, UBS Willow has suffered losses exceeding $300 million, which date back to 2007 – its net asset value (NAV) per share was down 80 percent upon UBS Willow’s liquidation announcement. In December 2012, a class action lawsuit was filed against UBS Willow alleging a deviation from the fund’s investment strategy. The lawsuit, filed in Manhattan, seeks to recover over $200 million for investors who have lost money in the fund. Meanwhile, the Law Offices of Robert Wayne Pearce, P.A. is currently investigating the broker-dealers and financial advisors that marketed and sold the product to investors. Our attorneys are researching potential claims that will hold broker-dealers and financial advisors liable for recommending UBS Willow and recover additional losses resulting from the investment.

Apr 9, 2025

CFD Investments Investor Alert – Lax Supervision of Independent Brokers Can Cause Losses

CFD Investments Inc. is one of the smaller independent broker-dealers whose business model is akin to a franchise operation. CFD Investments is headquartered in Kokomo, Indiana and reportedly has over 200 registered representatives across the state operating in one or two person offices. Its growth in recent years can largely be attributed to layoffs at the major wire houses due to the most recent financial market meltdown. Most of CFD Investments registered representatives’ gross production of revenues is less than $300,000 per year. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors’ rights.

Apr 9, 2025

Cetera Financial Investor Alert – Lax Supervision of Independent Brokers Can Cause Losses

Cetera Financial Specialists is a subsidiary of the Cetera Financial Group. It is one of the larger independent broker-dealers whose business model is akin to a franchise operation. Cetera Financial is headquartered in Schaumburg, Illinois and reportedly has over 2000 registered representatives across the state operating in one or two person offices. Its growth in recent years can largely be attributed to layoffs at the major wire houses due to the most recent financial market meltdown. Most of Cetera Financials registered representatives’ gross production of revenues is less than $200,000 per year. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors’ rights.

Apr 9, 2025

Cetera Advisors Investor Alert – Lax Supervision of Independent Brokers Can Cause Losses

Cetera Advisors is a subsidiary of the Cetera Financial Group. It is one of the largest independent broker-dealers whose business model is akin to a franchise operation. Cetera Advisors is headquartered in Denver, Colorado and reportedly has over 1000 registered representatives across the state operating in one or two person offices. Its growth in recent years can largely be attributed to layoffs at the major wire houses due to the most recent financial market meltdown. Most of Cetera Advisors’ registered representatives’ gross production of revenues is less than $300,000 per year. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors’ rights.

Apr 9, 2025

Cetera Advisor Networks Investor Alert – Lax Supervision of Independent Brokers Can Cause Losses

Cetera Advisor Networks is a subsidiary of the Cetera Financial Group. It is one of the larger independent broker-dealers whose business model is akin to a franchise operation. Cetera Advisor is headquartered in El Segundo, California and reportedly has over 2300 registered representatives across the state operating in one or two person offices. Its growth in recent years can largely be attributed to layoffs at the major wire houses due to the most recent financial market meltdown. Most of Cetera Advisor’s registered representatives’ gross production of revenues is less than $300,000 per year. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors’ rights.

Apr 9, 2025

Capital Investment Investor Alert – Independent Broker-Dealer’s Lax Supervision Causes Losses

Capital Investment Co. is one of the smaller independent broker-dealers whose business model is akin to a franchise operation. Capital Investment is headquartered in Raleigh, North Carolina and reportedly has over 200 registered representatives across the state operating in one or two person offices. Its growth in recent years can largely be attributed to layoffs at the major wire houses due to the most recent financial market meltdown. Most of Capital Investment’s registered representatives’ gross production of revenues is less than $300,000 per year. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors’ rights.

Apr 9, 2025

Capital Financial Investor Alert – Independent Broker-Dealer’s Lax Supervision Causes Losses

Capital Financial Group Inc./H. Beck, Inc. (Capital Financial) is a mid-size independent broker-dealer whose business model is akin to a franchise operation. Capital Financial is headquartered in Betheseda, Maryland and reportedly has over 1000 registered representatives across the United States operating in one or two person offices. Its growth in recent years can largely be attributed to layoffs at the major wire houses due to the most recent financial market meltdown. Most of Capital Financial’s registered representatives’ gross production of revenues is less than $300,000 per year. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors’ rights.