Broker Dealer Financial Services Corp. (CRD#: 8073) is a large brokerage firm headquartered in West Des Moines, Iowa. Currently, this broker-dealer is licensed to operate in 53 states and U.S. territories.
As of May of 2018, Broker Dealer Financial Services Corp. has six disclosures listed on its official BrokerCheck report. Here, our securities fraud attorneys provide an overview of the most recent disclosure listed within FINRA records.
FINRA Disclosures: Broker Dealer Financial Services Corp.
Without admitting or denying wrongdoing, Broker Dealer Financial Services Corp. consented to sanctions after FINRA raised allegations that the firm failed to institute an effective supervisory system to oversee the sale of risky leveraged and inverse exchange traded funds (ETFs).
According to investigators, the firm failed to conduct proper due diligence on certain non-traditional ETFs before allowing its individual brokers to sell them to customers. As the firm and its representatives failed to conduct a proper review of the investments, it lacked a reasonable basis to ensure that these financial products were actually suitable for each customer’s needs. Leveraged and inverse ETFs are notoriously risky investments, and these products are not suitable for all investors.
As a result of the alleged misconduct, FINRA brought sanctions against Broker Dealer Financial Services Corp. The firm agreed to pay a $75,000 fine along with a total of $24,564.18 in financial restitution to investors who sustained losses in the unsuitable non-traditional ETFs.
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At Sonn Law Group, our legal team has helped many investment fraud victims recover financial compensation for their losses. If you or a loved one has sustained major losses in risky exchange traded funds, we are prepared to fight for your rights. To arrange a free, no obligation initial consultation, please contact our law office today.
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