Berthel Fisher Fined for Supervisory Failure

Posted on March 19th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

FINRA has fined Berthel Fisher and its affiliate, Securities Management & Research, $775,000 for supervisory failures related to sales of non-traded REITs and leveraged and inverse ETFs. As part of the settlement, Berthel Fisher must retain an independent consultant to improve its supervisory procedures relating to its sale of alternative investments.

According to the FINRA, strong culture of compliance is an essential element of the proper marketing of complex products.  From January 2008 to December 2012, Berthel Fisher’s compliance of the sales of non-traded REITs, inverse ETFs and other products fell short. Berthel Fisher also failed to ensure that its registered representatives understood the unique features and risks of those products before presenting them to retail clients.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston


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