Woodbury Financial Services: Information for Investors

Woodbury-Financial-Services--Information-for-Investors
Woodbury Financial Services (CRD#: 421) is a registered brokerage firm based in Oakdale, Minnesota. Currently, this company is registered to operate in 52 U.S. states and American territories. As of early January of 2018, there are 24 reported disclosures on this firm’s industry profile. This includes 17 regulatory events and 6 FINRA Arbitration cases.

In this article, our investor advocates list the most recent regulatory disclosures involving Woodbury Financial Services. For complete, detailed information regarding this firm’s disclosure, investors should refer to the Woodbury Financial Services BrokerCheck Report. All information provided below has been obtained from FINRA.

 

Woodbury Financial Services: FINRA Disclosures

 

Disclosure # 1

Date: 12/20/2017

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase class A shares in certain mutual funds without a front-end sales charge. The findings stated that notwithstanding the availability of the waivers, the firm failed to apply the waivers to mutual fund purchases made by eligible customers and instead sold these eligible customers Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. These sales disadvantaged eligible customers by causing the customers to pay higher fees than they were actually required to pay.”

Sanction Details: “The firm was censured, fined $75,000, and required to provide a remediation plan to FINRA to remediate eligible customers who qualified for, but did not receive, an applicable mutual fund sales-charge waiver. As part of this settlement, the firm agreed to pay restitution to eligible customers, estimated to total $128,583.”

 

Disclosure # 2

Date: 05/03/2017

Reporting Source: Self-Reported

Initiated By: FINRA

Allegations: “Without admitting or denying the findings the firm consented to the sanctions and to the entry of findings that it applied an inaccurate accounting and net capital treatment of investment advisory fees. The findings stated that the firm failed to prepare and maintain accurate financial records, including general ledgers, balance sheets and trial balances, and net capital computations.”

Sanction Details: “The firm was censured and fined $65,000. In determining the appropriate sanctions in this matter, FINRA considered the firm’s self-reporting of the conduct.”

 

Disclosure # 3

Date: 11/24/2015

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to identify and apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (UITs).”

Sanction Details: “The firm was censured, fined $100,000, and required to submit satisfactory proof of payment of restitution to affected customers, or of reasonable and documented efforts undertaken to effect restitution.”

 

Disclosure # 4

Date: 05/29/2015

Reporting Source: Self-Reported

Initiated By: New York Department of Financial Services

Allegations: “For regulatory actions that occurred between December 2008 and October 2012, the Department alleged that the firm failed to disclose its regulatory actions within 30 days of final disposition and that the firm failed to accurately reflect those matters on its license renewal applications.”

Sanction Details: “Monetary/fine $5,000”

 

Disclosure # 5

Date: 06/25/2014

Reporting Source: Regulator

Initiated By: Missouri

Allegations: “Violation of Section 409.4-412, RSMO. (Cum. Supp. 2012) by failing to supervise registered agent Gould’s activities in violation of section 409.4-412(d)(13).”

Sanction Details: “Monetary/fine $150,000. Woodbury represents that Woodbury has settled with clients regarding funds improperly received by Gould, and has compensated 22 individuals impacted by Gould’s actions in the amount of approximately $1,900,000.00 to date.”

 

Disclosure # 6

Date: 12/11/2013

Reporting Source: Regulator

Initiated By: FINRA

Allegations: “The firm used a system offered by a commercial vendor to comply with the firm’s regulatory obligations pertaining to archiving, preserving and supervising the business-related emails of its associated persons. However, various disruptions or failures not caused by the firm occurred in the journaling process or function that affected outside servers impacting certain business-related emails of the firm’s representatives, including representatives who had left the firm. During this period of the journaling disruptions, emails were not journaled from the affected servers to the vendor’s system and accordingly certain emails were not retained in the vendor’s system. Upon identification of the issue, the firm corrected the journaling issue and retrieved a majority of the affected emails, subjecting them to the firm’s email review protocol with the exception of emails of former firm representatives, which were not recovered.”

Sanction Details: “Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings, therefore it is censured and fined $60,000.”

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