DEFENDING YOUR PROFESSIONAL INTEGRITY
Stay current on recent changes in the regulatory environment
Investors are not the only victims of the Puerto Rico bond market crash. If you are among the hundreds of financial advisors caught up in a slew of customer complaints due to investors’ losses in accounts that were highly concentrated with Puerto Rico closed-end fund shares, relief is available to you. Once resolved, these disputes can be fully expunged from the Web CRD system by pursuing expungement through the FINRA Rule 2080 arbitration process.
In the majority of these complaints, the impacted advisor is not even a named respondent in the complaint. Since any culpable conduct in connection with the sale of, and failure to properly supervise the performance of, Puerto Rican closed-end bonds, has already been imputed to the Broker-Dealers (for examples, see UBS PR Sanctions and Santander Sanctions), the advisor cannot be found to have been "substantially or materially involved" in these failures.
In typical settlements where an advisor is not required to contribute financially to the settlement paid to the claimant, FINRA has consistently held that the advisor was "not involved" in the alleged violation. Remarkably, this application of Rule 2080 is especially true where the complaint and subsequent settlement resulted from losses sustained as a result of a firm-wide failure to monitor accounts appropriately, such as is the case with these Puerto Rico closed-end bonds.
The impact of having negative marks on your BrokerCheck profile can no longer be ignored. Your professional integrity matters in this profession, and as such, you must take measures to protect your professional reputation. As these matters come to final resolution, your only recourse is to retain a highly qualified practitioner to successfully pursue expungement on your behalf.
AdvisorLaw represents only advisors. Call us today to discuss your options.
Samantha G. DePrima JD, LL.M
3400 Industrial Lane, Unit 10A
Broomfield, CO 80020
Direct: (720) 549-3303
This blog is my ongoing effort to inform and educate FINRA licensed professionals about the evolving regulatory ecosystem in which we operate.