FINRA Sanctions Sanctuary Securities Inc. for Reps Unsuitable ETF Sales
The White Law Group is investigating potential securities claims involving Sanctuary Securities Inc. (formerly known as David A Noyes & Co.) (CRD# 205).
According to public records posted on FINRA’s site on July 1, the Financial Industry Regulatory Authority has reportedly censured and fined Sanctuary Securities $160,000 and ordered the firm to pay more than $360,000 in restitution to customers for alleged failure to properly supervise their reps’ solicited sales of non-traditional ETFs, among other misconduct.
FINRA says that Sanctuary allegedly failed to establish and maintain a sufficient supervisory system in relation to solicited sales of the products and of their unique features and risks, according to a Letter of Acceptance Waiver and Consent.
Non Traditional ETFs have unique features and specific risks and are intended to be utilized only by knowledgeable investors who understand the features and risks associated with them and should be actively and frequently monitored on a daily basis.
The alleged misconduct occurred between 2014 and 2018, when the firm was registered as David A. Noyes and Company, in Chicago, IL. The firm changed names In March 2020 to Sanctuary Securities.
According to FINRA’s findings, Sanctuary also allegedly failed to review outside business activities of certain representatives and did not terminate a securities offering that failed to meet the minimum contingency requirement, among other allegations.
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. 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.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Free Consultation with a Securities Attorney
If you have concerns regarding investments you purchased through Sanctuary Securities Inc. and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
For more information on the firm’s investigation please see the following:
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.