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

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