Brokerage Firm Review: PFS Investments Inc.

Information for Current and Former Clients of PFS Investments

pfs investments inc complaintsPFS Investments Inc. (CRD#: 10111/SEC#: 801-72263,8-26486) is a brokerage firm and investment advisory firm.

Based in Duluth, Georgia, PFS Investments is regulated by both the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).

FINRA reports that this firm has 21 total disclosures on its record, including 17 regulatory events and 2 arbitration awards.

At Sonn Law Group, our securities fraud lawyers are currently investigating investor claims involving PFS Investments.

Below, we highlight some of the most notable recent complaints and regulatory sanctions brought against this firm. Additionally, you will find a running list of news events involving PFS Investments representatives.

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Browse PFS Investments Financial Complaint and Regulatory Action News

PFS Investments: Notable Investor Complaints and Regulatory Sanctions

Failure to Properly Review Outside Business Activities

In 2012, the Nevada Securities Division took enforcement action against PFS Investments. State regulators determined that PFS Investments advisor Chris Howard (CRD#: 1523819) violated FINRA Rule 3270, which requires registered representatives to disclose and get approval for outside business activities.

Regulators also assessed that the brokerage firm, PFS Investments, lacked a proper supervisory system to deal with its representatives’ outside business activities. The firm was ordered to pay nearly $50,000 to the state and to update its written supervisory policies to address gaps in its policies.

 

FINRA Arbitration Claim: Material Misrepresentation

In 2011, a FINRA arbitration panel based in Los Angeles, CA awarded a customer of PFS Investments more than $475,000 in financial compensation. The underlying financial products in this case were variable annuities purchased through the firm.

The investor raised a complaint alleging that, among other things, representatives of PFS Investments made material misrepresentations in offering the financial products. After reviewing the claim, the FINRA arbitration panel issued an award to the investor.

 

Flaws in Customer Record-Keeping System

Under securities regulations, registered brokerage firms must comply with certain record-keeping requirements. Specifically, for all accounts requiring a suitability determination, customers should be provided documents when they open their account and once every 36 months thereafter.

This regulation helps to ensure that investors are being offered securities and financial products that are truly appropriate for their risk tolerance and individual investment objectives. FINRA determined that up to ten percent of the customers at PFS Investments were not receiving the proper documentation. The broker-dealer was fined $100,000 and ordered to correct all deficiencies.

 

Failure to Adequately Supervise a Mutual Fund Transaction

In 2006, the Florida Office of Financial Regulation took enforcement action against PFS Investments in relation to a specific mutual fund transaction. Florida regulators determined that the brokerage firm failed to supervise the trade. PFS Investments was ordered to pay a $5,000 financial penalty.


At Sonn Law Group, our investment fraud lawyers are aggressive, effective advocates for investors throughout the United States. If you lost money investing with PFS Investments or any PFS Investments representative, we are available to help. For a free, no obligation review of your legal case, please contact our law office today.