Stifel Fined Nearly $3 Million for Supervisory Failures

Posted on May 23rd, 2024 at 1:12 PM
Stifel Fined Nearly $3 Million for Supervisory Failures

From the desk of Jim Eccleston at Eccleston Law

Stifel Financial Corp. has agreed to pay fines and restitution totaling nearly $3 million due to deficiencies in supervision and compliance regarding the sale of non-traditional exchange-traded funds (NT-ETFs) and products per a filed AWC (Acceptance, Waiver, and Consent).

According to InvestmentNews, the Financial Industry Regulatory Authority Inc. (FINRA) had alleged repeated failures to establish, maintain, and enforce supervisory systems to ensure compliance with suitability obligations. Stifel agreed to the settlement without admitting or denying the findings.

Despite previous penalties in 2014 and commitments to improve sales practices, the Stifel firms fell short of their obligations, failing to detect and address hundreds of potentially unsuitable recommendations regarding NT-ETFs. These complex products, typically intended for short-term holding, were inappropriately held for longer periods, resulting in losses for customers, including seniors and those with conservative investment objectives.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

 

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

July 1, 2025
State Regulators Fine Five Major Broker-Dealers Nearly $10 Million for Excessive Commission Charges

A coalition of state securities regulators has ordered five broker-dealers — including Edward Jones, LPL Financial, RBC, Stifel, and TD Ameritrade — to pay almost $9.9 million in penalties for overcharging customers on small-value trades.

June 30, 2025
SEC Charges New Mexico Investment Advisor with Fee Fraud and Fiduciary Breaches

The Securities and Exchange Commission (“SEC”) has charged David A. Nagler and his firm, New Line Capital LLC, with defrauding clients through deceptive fee disclosures and undisclosed conflicts of interest.

 

June 27, 2025
FINRA Sanctions Advisor for Accepting $1 Million Inheritance from Client Without Firm Approval

FINRA has fined and suspended veteran advisor Kenneth J. Malm for accepting a $1 million inheritance from a client without receiving the necessary firm approval.