Scott & Stringfellow, LLC (CRD #6255, Richmond, Virginia) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $350,000.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to establish and maintain a supervisory system, including written procedures, reasonably designed to achieve compliance with applicable NASD and FINRA rules in connection with the sale of Non-Traditional Exchange Traded Funds (Non-Traditional ETFs) in accounts where the firm provided brokerage services to certain retail customers, and failed to provide adequate formal training, guidance or tools to educate registered representatives and supervisors about Non-Traditional ETFs.
The findings also stated that the firm allowed its registered representatives to recommend a Non-Traditional ETF to customers without performing reasonable diligence to understand the risks and features associated with it. Finally, the findings stated that the firm’s registered representatives made unsuitable recommendations of Non-Traditional ETFs to certain customers with the primary investment objectives of income or capital preservation. The firm has already provided restitution to certain customers with these primary investment objectives.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
If you have questions about investments you made with Scott & Stringfellow, LLC, the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at https://www.whitesecuritieslaw.com.