California Securities Fraud Attorney Call Today 800-699-1881
California Securities Fraud Lawyer Firm Overview Attorney Profiles Recoveries Obtained Frequently Asked Questions Testimonials Contact Us
information center
Attorney Advertising Disclaimer
Securities
Broker Misrepresentation
Brokerage Firms Sued
FINRA
Structured Products
Hedge Fund Losses
Recognizing Investment Losses
Recovery of Investment Loss
Securities Arbitration
Reverse Convertible
Misconduct
Securities Fraud
Securities Mediation
Securities Litigation
Stock/ Investment Losses
Suitability/ Unsuitability
Unauthorized Trading
Common Claims
Products
Frequently Asked Questions
Attorney Referrals
Video Center
securities fraud blog
legal blog Click here for a free case evaluation. Read our Articles on Securities Related Issues here. have a question resources
contact us
Name:
Email:
Phone:
Are you a new client?
Message:
10 Avvo avvo badge
If you need help recovering your losses contact us today. View our complete list of brokerage firms and banks we've sued.

FINRA to Firms: Investment by Seniors Subject to Special Compliance Considerations

FINRA, the SEC and NASAA have all issued 2014 notices to member firms, brokers and financial advisers regarding how products and services may, should and should not be marketed and sold to senior citizen investors.

FINRA: 2014 Regulatory and Examination Priorities Letter

In April of 2013, FINRA first announced it would increase scrutiny of how firms market complex financial products to seniors and the elderly, stating at the time that cases of elderly fraud and broker misconduct were "something that has all of our attention."

Discussing complexities such as real-estate investment trusts (REITs), exchange-traded funds (ETFs) and variable annuities (VAs), the regulatory agency called into question the issue of suitability and how (or if) firms have taken steps to protect vulnerable senior clients from financial abuse, mainly those with diminished mental capacity or those less experienced investors, deemed "unsophisticated" in industry terms.

For instance, in July, FINRA barred Redland, California registered principal John Thomas Thornes (Thornes & Associates Inc., Investment Services) for allegedly stealing $4.2 million from two trust accounts, one of which was established to provide medical care to an elderly Alzheimer's patient. Thornes had recommended the use of margin and liquidation of conservative holdings to an account trustee, causing unnecessary charges and risk inconsistent with the trustee's investment objective and minimal risk tolerance.

In December, FINRA barred Los Angeles broker Scott Schroeder (Milkie Ferguson Investments, Inc.) for making unsuitable recommendations to multiple elderly customers. He allegedly recommended high-risk products to customers over 70 years old with moderate risk tolerances.

To better ascertain suitability, firms may ask about retirement status, healthcare needs and issues relating to power of attorney. FINRA also vowed to review firms' policies and procedures regarding the identification and addressing situations of diminished mental capacity.

If you have invested with a firm, broker or financial adviser whose bad faith recommendations of complex securities were in conflict with your investment objectives or risk tolerances and such misconduct has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881.

News: How your firm can stay compliant when serving seniors (InvestmentNews)

accolades
The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.
Website: