Three major wealth management firms will pay significant sums to resolve allegations that they failed to live up to their duties.
Lincoln Financial Group's Lincoln Financial Advisors, Morgan Stanley and Atria Wealth Solutions' Western International Securities must pay a combined $1.7 million under two FINRA settlements and an arbitration award. The three cases are separate, but each involve allegations of breaches of supervisory duty. As the third leading type of client claim in FINRA arbitration
That's especially true these days, with
"The supervision of complex or nonconventional products has always been a priority for the regulators," Straney said. "The regulators have limited resources to address the needs of an exponentially expanding marketplace."
Straney recommended that any customers who don't understand their account statements or are having trouble getting a hold of their broker go up the company chain.
"They should never hesitate to contact the supervisor of the operation directly if they have any questions or concerns," he said. "They should let the supervisors do their job by direct contact, which is one of the best ways to both understand as a client and protect your family's assets."
For a look at three separate supervisory cases against Lincoln, Morgan Stanley and Western International Securities from the past month, scroll down the slideshow. To view nine recommendations offered by the CFA Institute to protect consumers in the era of "gamification,"