HSBC Securities (USA) will pay a $750,000 civil penalty to settle with the Securities and Exchange Commission for making misrepresentations to retail clients about the compensation of its dually registered investment adviser and broker representatives.
According to the SEC's order, HSBC Securities told clients that its representatives were compensated based solely on nonfinancial factors and not based on the advisory fees paid to HSBC Securities.
The firm actually considered several financial factors to determine its representatives’ bonus compensation, including the amount of advisory fees that clients paid to HSBC Securities each quarter, which gave the broker/advisers “a financial incentive to generate more advisory fees in their clients' accounts,” the SEC said in release.
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.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"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.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
