The latest regulatory, disciplinary and criminal actions.
The state’s regulator brought charges against Schwab over “unethical and deceptive” practices that allegedly allowed an ex-advisor to collect at least $125,000 in fees from Schwab customers after his registration lapsed in 2014.
Brokers had “flawed understanding” of the product and improperly guided clients to hold the ETFs, which are meant for short-term trading, according to a settlement announced Monday.
The regulator said the penalties reflected the “widespread and significant harm” suffered by the commission-free trading app’s customers due to supervisory issues and trading outages.
The fine and censure agreed to by Cetera Advisor Networks mirrored previous sanctions against Securities America and Kestra Investment Services over broker recruits who shared client details with a third party vendor.
The regulatory review comes after Merrill in July last year paused prospecting in its training program after uncovering do-not-call violations.
Broker, who worked at Raymond James Financial Services and then International Assets Advisory, failed to obtain firm approval for the outside activity, Finra said.
Brokers were able to modify customer orders months after the settlement date in order to reduce tax liabilities in instances of partial sales of stock holdings.
Kansas-based investment advisor was over-charging at least four clients while he also ran a risky leveraged ETF strategy that cost some millions in losses.
Finra also fined the Iowa-based broker $5,000 for trying to settle the claim without his firm’s knowledge.
Marcus Boggs, a former Merrill Lynch broker who was arrested in 2019, admitted to using clients’ money for travel, expensive meals, and rent and mortgage payments.