TradeStation Securities' communications violated industry rules, including falling short on describing the risks involved in investing in volatile crypto assets.
The customer's UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client's attorney.
In his comments to analysts, CEO Paul Shoukry alludes to - but does not name - Commonwealth Financial as a factor.
“The questions is, how does an asset manager choose opportunities like this to invest in,” one executive said. “What’s the due diligence?”
After leaving LPL in 2020, it hasn't gone Cornick's way at Osaic.
LPL Financial is a bellwether for the broader financial advice marketplace.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Meanwhile, Merrill Lynch intends to continue building its alternative investment platform for wealthy clients.
“The Bluerock share redemptions are outrunning fund raising,” said one analyst. “I can’t imagine it will be treated kindly in the public markets.”
