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

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

September 26, 2023
Looming Real Estate Crisis Poses Risk to U.S. Banking Sector

With the current downturn in the commercial real estate market, trillions of dollars in loans and investments pose a looming threat to both the banking industry and potentially the broader economy.

September 25, 2023
Legal Challenges Over 'Money-for-Nothing' Payments Gain Momentum

Apollo Global Management and Carlyle Group, two major private equity firms, now face investor lawsuits regarding payments made to insiders without apparent justification.

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.