Curian Clearing Fined for Failing to Deliver Prospectus Materials to Customers

Attorney Advising Disclaimer

FINRA censured Curian Clearing, LLC of Denver, Colorado, and fined the firm $50,000 for failing to deliver prospectuses related to a money market mutual fund to customers who purchased shares of the product. The findings state that the firm failed to satisfy its requirement to deliver fund prospectuses to over 4,000 customer accounts for over 9,000 transactions in the fund, despite written procedures requiring such delivery.

FINRA AWC #2015046154001

FINRA reviewed Curian's sales through a program known as the Dollar Cost Average Program and found that Curian Clearing failed to deliver prospectuses to 4,274 customer accounts that had made approximately 9,032 transactions in the DCA Program Fund.

Furthermore, investigators discovered that although Curian Clearing had written procedures in place that required prospectus delivery, and even had a supervisory review process in place to ensure that prospectus materials were delivered to customers, the firm failed to enforce those procedures for the DCA Program Fund.

The report indicates that even though Curian Clearing's written procedures required delivery of prospectuses to mutual fund purchases, the firm for some reason was under the mistaken belief that such delivery was not required for market mutual fund transactions in the DCA Program Fund.

If you have invested through Curian Clearing, LLC in the Dollar Cost Average Program Fund, or with any firm, broker, or financial adviser whose failure to deliver to you a product's prospectus or other offering documents has proven harmful to your investments or interests—for instance, through an inability to access material information such as the specific program's restrictions, obligations, or important information about fees and charges—please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

Related Posts
  • Stifel Nicolaus Broker Chuck Roberts Accused of Securities Fraud Resulting in Multi-Million Dollar Damages Read More
  • Wedbush Fined $350k for Approving Fraudulent Wire Transfers Totaling $6.6 Million Read More
  • Stephen Takeda Barred During Customer Loans Investigation Read More