Soreide Law Group's  Instablog

Soreide Law Group
Send Message
Soreide Law Group, PLLC, is a securities litigation firm that is committed to helping victims recover financial losses due to fraudulent or negligent conduct on behalf of stock brokers or financial advisors. We are able to represent investors nationwide in the handling of their securities... More
My company:
Soreide Law Group PLLC
My blog:
Securities Lawyer Blog
  • Did You Invest In ETFs? 0 comments
    Oct 31, 2012 2:53 PM

    Soreide Law Group, PLLC, is currently investigating marketing and sales of non-traditional exchange traded funds (ETFs) to investors. Many of the country's leading banks - including Citigroup, Morgan Stanley, UBS and Wells Fargo - were recently sanctioned by the Financial Industry Regulatory Authority (FINRA) for more than $9.1 million over their failure to supervise retail sales of leveraged and inverse exchange-traded funds (ETFs).

    In addition to supervisory failures, FINRA said banks failed to have "a reasonable basis" for recommending these products to investors.

    "The added complexity of leveraged and inverse exchange-traded products makes it essential that brokerage firms have an adequate understanding of the products and sufficiently train their sales force before the products are offered to retail customers," said J. Bradley Bennett, FINRA enforcement chief, in a statement.

    "Firms must conduct reasonable due diligence and ensure that their representatives have an understanding of these products," he added.

    The fines were issued as follows:

    Wells Fargo - $2.1 million fine and $641,489 in restitution

    Citigroup - $2 million fine and $146,431 in restitution

    Morgan Stanley - $1.75 million fine and $604,584 in restitution and

    UBS - $1.5 million fine and $431,488 in restitution.

    Both the Securities and Exchange Commission (SEC), and FINRA have issued separate and joint warnings to investors about leveraged and inverse exchange-traded funds in recent months.

    Regulators are concerned about the increasing complexity of the products, their lack of transparency, and the potential to cause significant financial losses to the investors who do not completely understand how inverse and leveraged funds actually work.

    Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you have sustained investment losses due to your stock broker or financial advisor's recommendations regarding ETFs, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at:

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Soreide Law Group's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.