Community bank B-D fined for selling seniors unsuitable investments

Massachusetts orders Investment Professionals Inc. to pay $100,000 fine.
MAR 23, 2017

Investment Professionals Inc., a broker-dealer based in San Antonio, Texas, has been ordered by the Massachusetts Securities Division to pay a $100,000 fine for having sold unsuitable investment products to senior citizens. IPI, whose representatives work on the premises of community banks in Massachusetts, has agreed to offer restitution to the clients, the division said in a release. The firm also will retain an independent compliance consultant to review its policies governing supervision of its financial consultants in the state and its sales of securities to persons over 65. The review also will include IPI's compliance with Financial Industry Regulatory Authority Inc. rules on networking arrangements, non-cash compensation, and gifts and gratuities. Last November, the Massachusetts Securities Division charged IPI with using high-pressure sales contests and selling unsuitable investment products to senior citizens who were bank depositors.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave