A dually-registered investment adviser and broker-dealer settled SEC charges for failing to disclose conflicts of interest in connection with sources of third-party compensation received through revenue sharing cash sweep payments.
In a regulatory notice, FINRA reminded firms of their sales practice obligations to "alternative" registered investment companies, which FINRA defined as mutual funds that "seek to achieve their objectives through investments in non-traditional investment or asset classes."
A broker-dealer and a clearing firm settled FINRA charges for inadequate supervision of the "rollover" of investments in Unit Investment Trusts.
FINRA reached a settlement with six member firms for "failures to reasonably supervise early rollovers of Unit Investment Trusts, which caused customers to incur potentially excessive sales charges."
A broker-dealer settled FINRA charges for suitability violations, and related supervisory failures, as to the sale of non-traditional exchange traded funds and complex options positions to retail investors.