SEC Announces Sweeping Examinations of Brokerage Firms

Posted on August 21st, 2014 at 8:13 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

The SEC is planning to examine brokerages in 2015 with a focus on sales of expensive mutual funds as well as problem brokers.

Sales of expensive “L-share” classes of mutual funds and variable annuities, which have short surrender periods, but higher upfront costs, are on examination priority of the SEC. The SEC is interested to know whether investors were aware of the fees they would pay for different types of share classes and whether those charges were appropriate for the investors.

The second concern of the SEC is how well brokerage firms are supervising their branches.  The examiners will choose branch offices based on factors such as their size, trading activities, and sales of certain products, such as risky complex securities.

Finally, SEC announced that brokerage firms can expect an examination of brokers who have a history of disciplinary violations. 

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


Return to Archive



Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.


December 9, 2022
FINRA Reminds Firm To Monitor For “Red Flags” In Options Trading Applications

The Financial Industry Regulatory Authority (FINRA) has released an announcement reminding firms that recommend options trading for clients to be constantly monitoring for “red flags” on customer applications.

December 8, 2022
FINRA Orders Morgan Stanley to Pay $697,897 Over Failure to Supervise Nine Advisors

The Financial Industry Regulatory Authority (FINRA) has ordered Morgan Stanley to pay $697,897, including a $200,000 fine and $497,897 in restitution, for failing to adhere to its own procedures for supervising its advisors’ high-risk recommendations. 

December 7, 2022
FINRA Bars Former Northwestern Mutual Advisor For Allegedly Cheating on CFP Exam

The Financial Industry Regulatory Authority (FINRA) has barred a former Northwestern Mutual advisor after he failed to cooperate with the regulator’s probe into the Certified Financial Planner Board of Standards’ (CFP Board’s) decision to bar the advisor for alleged “exam misconduct.”