The Financial Industry Regulatory Authority (FINRA) is the securities industry watchdog and regulator of US broker dealers. Recently, FINRA released a report regarding disciplinary actions for the month of February 2014. According to the report:
“Matrix Capital Group, Inc of New York submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $30,000 and suspended from executing any variable annuity transactions for one year, with the exception of liquidating transactions for customers. Before beginning to execute non-liquidating variable annuity transactions for customers, the firm shall retain an independent consultant to review and make recommendations concerning the adequateness of its supervisory and operating procedures (written and otherwise) as they relate to the matters described…including the adequacy of its supervisory procedures relating to review of variable annuity exchanges.”
As part of its findings, FINRA alleged that various variable annuity transactions approved by Matrix Capital Group “caused a total of more than $70,000 in surrender charges, and most of the customers forfeited significant death and/or living benefits in the surrendered contracts.”
The foregoing information, which is publicly available on FINRA’s website, here, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
When FINRA affiliated broker dealers fail to properly supervise the transactions and activity in customer accounts, they may be liable for investment losses. If you suffered losses investing with Matrix Capital Group and would like to discuss your litigation options, please call the securities attorney of The White Law Group at (312) 238-9650 for a free consultation.
To learn more about The White Law Group, visitwww.WhiteSecuritiesLaw.com.