Mass. Regulators charge Royal Alliance Associates with Failure to Supervise
According to an article in Investment News today, the state of Massachusetts has charged Royal Alliance Associates with failure to supervise a broker who recommended unsuitable investments to a couple, costing the investors nearly $60,000.
The Massachusetts securities regulators allege that the broker, Stephen F. Davis of Barrington, R.I., breached his fiduciary duty when he advised two investors in 2015 to exchange an annuity three years before its expiration for another annuity with a much lower interest rate.
According to the complaint, Royal Alliance Associates has been charged with failure to supervise a broker who recommended unsuitable investments to a couple, which ultimately cost the investors nearly $60,000.
The allegations also claim that Davis failed to file paperwork for the exchange in a timely manner leading to $15,000 in penalties for the couple, while the broker received more than $17,000 in commissions.
The couple reportedly also lost more than $43,000 in interest.
Failure to Supervise – Investors may have claims.
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
If you are concerned about your investments, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our offices at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at https://www.whitesecuritieslaw.com.