FINRA sanctions American Independent Securities Group for Supervisory Issues
The White Law Group is investigating potential securities claims involving American Independent Securities Group, Inc. (CRD No. 135288).
According to a Letter of Acceptance Waiver and Consent posted on FINRA’s site on March 29, the regulator has sanctioned American Independent Securities Group (CRD #135288) and its chief compliance officer (CCO) for supervisory issues related to collateralized mortgage obligations (CMOs). A registered representative was also sanctioned, according to the findings.
According to FINRA’s findings, from October 2014 through April 2017, the firm purportedly failed to establish, maintain, and enforce a supervisory system, relating to sales of collateralized mortgage obligations (CMOs) and it chief compliance officer allegedly failed to supervise a registered representative in connection with the sales of CMOs.
FINRA said that the firm failed to take reasonable action to ensure that supervision was in place to reasonably respond to red flags indicating that CMO recommendations were unsuitable; and also failed to reasonably supervise discretionary trading and accounts held by senior investors.
A CMO is a complex mortgaged-backed security. A CMO comprises multiple pools of mortgage securities or loans and is structured with different bond classes or “tranches” that each operates under its own set of rules for distributing the cash flows from the underlying mortgages. These tranches are each designed to have their own unique risk characteristics and maturity dates.
This matter involves inverse floaters and according to FINRA, inverse floaters are only suitable for sophisticated investors with a high-risk profile.
American Independent Securities Group was censured and ordered to pay partial restitution of $275,000, according to the letter. The firm’s chief compliance officer was reportedly fined $10,000 and suspended for 60 days, and the firm’s registered representative who recommended the CMOs was reportedly suspended from associating with any FINRA member for 45 days.
Potential Lawsuits to Recover Financial Losses
If you have concerns regarding investments you purchased through American Independent Securities Group you may be able to file a complaint against the firm. To speak with a securities attorney about this matter, please call the offices of The White Law Group at 888-637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.